Sridhar Vembu, co-founder and chief scientist of Zoho, has recently taken to social media to express his concerns about the pricing strategies of popular digital signature software DocuSign, as well as the rampant hype surrounding artificial intelligence (AI). His critiques come amid growing skepticism among corporate customers and analysts about the true capabilities and utility of these technologies.
Vembu's comments about DocuSign started when Andrew Wilkinson, co-founder of the US-based company, voiced his shock at his firm’s steep subscription costs. "I just found out how much we pay for DocuSign and my jaw dropped. What's the best alternative? Is there something free or stupid cheap?" he posted on X (formerly Twitter). Vembu responded by criticizing DocuSign for being what he calls a "supremely bloated company" charging for overpriced services. He stated, "We solve the problem with Zoho Sign and we don’t need 6,705 employees to produce digital signature software." Vembu’s assertion sheds light on the broader issues of software pricing, particularly within the enterprise space.
His skepticism did not end with digital signing software. Vembu elaborated on the current state of AI, pointing out the disconnection between the industry's hype and the practical realities faced by businesses. "One fact about the recent AI hype is the corporate customers and analysts are not terribly excited. They are in a 'prove it to me' mode, as they should be. I am personally enthusiastic about some technologies, but I will not overhype them," he wrote on X.
This skepticism isn't unfounded. It mirrors concerns across the tech industry, particularly highlighted by Microsoft's recent decision to cancel U.S. data center leases due to oversupply – a cautionary indication of the AI bubble deflational signs. Vembu highlighted these developments to support his argument about the necessity for realistic assessments of AI's potential versus the expectations set by investors and hype-driven narratives.
Vembu outlined several practical applications of AI as it currently stands, emphasizing its historical foundations long before large language models (LLMs) became prevalent. He provided a list, including areas such as: speech-to-text and text-to-speech functionalities, image recognition for authentication, spam/fraud detection, and security threat analysis. He noted, "Many of these applications have existed long before the rise of LLMs and were originally categorized under 'machine learning.'" This serves as both recognition of AI's utility and as a critique of how its advancements are often overstated.
Though expressing excitement about AI's potential, particularly for security analysis, pattern recognition, and assistance for programmers, Vembu cautioned against the overhyping of technologies like autonomous AI agents. He described them as significantly overhyped technologies, comparing their challenges to those of self-driving cars: “don’t get too taken by the hype, but engineers in the trenches are making progress.”
Looking forward, Vembu stressed the importance of investing in research and development rather than merely pouring funds driven by stock market pressures. He noted, "When hype meets Wall Street, often a lot of money gets thrown at it, be it the optical bubble or the real estate bubble and now the AI bubble. Eventually, Wall Street gets tired and walks away, and that's when the real engineers get excited." This statement not only critiques the current investment climate but also suggests a return to substantive development work over speculative investments.
Meanwhile, many users of Zoho Sign have applauded its affordability compared to DocuSign, echoing Vembu's assertion about addressing enterprise software pricing issues. One user remarked on social media, “Zoho Sign has been our go-to for electronic signatures; it’s cost-effective and user-friendly, unlike some of its expensive competitors.” This sentiment aligns with Vembu's focus on countering inflated prices with practical, user-oriented solutions.
Vembu's reflections on both Price and AI hype highlight important conversations within the tech industry. With enterprises reassessing where to allocate budgets and focus, Vembu’s insights offer both critique and direction. He advocates for bringing innovation back to core technology development and maintaining realistic expectations about what AI can deliver.
Whether Vembu's candidness around DocuSign's pricing and AI's inflated narrative sparks broader industry change remains to be seen. Nevertheless, his call for more grounded approaches reflects growing frustration within the tech sector about unsustainable practices driven by investor hype and the overemphasis on short-term gains. Looking to the future, Vembu remains hopeful, urging continued excitement but tempered with realistic boundaries around what can genuinely be accomplished with AI.