Kainos operates in a sector broadly known as Software as a Service (SaaS).
SaaS is a way of delivering software over the internet as a subscription rather than downloading it permanently onto your computer.
Over the past 15 years SaaS has become the standard operating model for the software industry.
It made software firms very popular with investors as it provides a predictable source of recurring revenue.
However, over the last year the valuations of many software companies has fallen sharply as fears grow about how AI will disrupt the SaaS model – a phenomenon dubbed “the SaaSpocalypse”.
There are two main concerns. That companies which buy software will replace workers with AI and therefore need fewer software subscriptions and that companies will use AI to create their own software.