Among all the areas that AI could accelerate and elevate, another one occurred to us recently: All-in-one SMB SaaS platforms. These SaaS offerings span several marketing and operational functions. How does AI align? The technology’s need for federated data compels platforms that process more stuff.
Before getting into all those dynamics, let’s take a step back for historical context. The SMB software space – and analysts like us who cover it – have hosted an ongoing debate over the past several years. This debate evaluates the relative strengths of all-in-one platforms versus the freedom to mix & match.
The short version is that the former provides some simplicity in key factors like user experience and billing — a one-stop-shop. But the latter provides more flexibility to customize a mix of best-of-breed software products. Don’t like Slack’s conferencing feature? Use Zoom instead… that sort of thing.
There’s no right answer between these divergent paths, and it often comes down to the goals and savvy of the SMB itself. But for providers that can pull off a good all-in-one platform, there are several benefits such as greater ARPU and retention, given that the software is embedded deeply in the SMB fabric.
Back to AI’s role in this debate, it could tip the scales in favor of all-in-one (AIO). As teased above, this is simply because AI can do a better job when it has access to more data. From platforms like Thryv and Vendasta to the rise of agentic AI workflows, the question is no longer just about simplicity or flexibility, but whether AI itself could amplify the value, adoption, and stickiness of AIO software for SMBs.
Thryv’s Joe Walsh on Taking a Measured, Practical Approach to AI for SMBs
Full Weight
This realization was one byproduct of a recent discussion with Thryv CEO Joe Walsh. As an all-in-one platform, he says Thryv can hold SMBs’ hands into the brave new world of AI-fueled productivity. It’s the right player to do so as it can federate and process SMB data across functions – from SEO to scheduling.
Similarly, Vendasta’s new agentic AI employees are enabled by the fact that it runs key functions such as outbound marketing, inbound lead management, and appointment scheduling. Its AI can be trained on these and other SMB functions to then automate things like answering new customer queries.
Conversely, AI functions introduced by SMB SaaS platforms aren’t as data-empowered if those providers are just running a single function — such as an SEO tool here, or a reputation management tool there. This new reality could motivate more platform expansion, beyond standard benefits (e.g., ARPU) of doing so.
The question is what comes next. We project that AIO platforms will come to this realization if they haven’t already. And they’ll use it to propel platform adoption. That can mean two things: differentiating themselves from non-AIO platforms, and upselling SMBs to more functions to unlock AI-training benefits.
In either case, AIO providers can utilize the buzz around AI to expand adoption of their core platforms. There’s ample evidence that AI is in high demand among SMBs, so the messaging is clear: “AI can be more powerful and work on your behalf, dear SMB, if you’re using the full weight of our AIO platform.”
Header image credit: Buddha Elemental 3D on Unsplash
