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Posted by jnord 1 day ago

AI agents are starting to eat SaaS(martinalderson.com)
353 points | 357 commentspage 2
MagicMoonlight 14 hours ago|
You can already hire Indians to make your own HR system. People still choose SAAS, because the system already works.

You do not want to have to plan out a system with 800 unique requirements yourself. It takes a ridiculous amount of work, and you are then stuck maintaining it.

It’s never been about the difficulty of programming, it’s been about the pain of designing and maintaining.

hennell 18 hours ago||
This is what I don't get with a lot of the AI based saas projects - what is your value add? If you can build it with AI then (in theory) your customer can also build it with ai, so why do they need you? In the SaaS world you don't because the cost of development and maintenance just doesn't scale well, but if you're 99% a wrapper around an AI, your 'business' feels easily replicable to me.

But that does leave a weird gap where SaaSes that took a lot of time to make but can now be handled by an Ai won't survive either. If the business stays hand-coded it costs too much to be viable, if it moves to Ai it looses any advantage over doing it youself.

biql 20 hours ago||
There are already plenty of SaaS that offer open source version as a way to push to the cloud and charge for hosting, maintenance, support and some extra features. In that way, a working code have already been commoditized and those companies didn't disappear.
osn9363739 12 hours ago|
I was looking for this comment (I was going to say the same) - I'm mostly on the backend services and infra side, and I have the option to host a lot of open-source tooling as opposed to paying for a service. I have to weigh up my options when deciding what to do, but a lot comes down to how much time I have and how much I'm willing to waste in time & hosting costs to keep the thing running. Also, do I need support, and ensure uptime and SLAs etc. Or what if I'm on holidays. I'm sure there are other things I'm not thinking of right now.
sublimefire 23 hours ago||
The problem is that we are still talking only about software. If that is the only thing agents can do then they are just better IDE’s for programmers. This would be an enabler for building stuff faster. Think about it, there is already a huge market for SAAS, but most of the companies have contracts in place, so what we’ll have is just more competition which will drive prices down. Companies will not start changing internal tools, refactoring is a bad investment in general, if you choose that over some new features or products it signals larger issues, so nobody will replace existing cheap stuff that is working.

Going back to the beginning, I think we just lack good tools for other cases where agents could be used. Copilot is not great, chatgpt alone lacks some features to use it for business as is. I think what will happen is that we will see a lot more new tooling pop up that relies on agents in niche markets which will just amplify the power users. It will be another category of SAAS the companies will adopt.

lil-lugger 1 day ago||
AI coding IS SaaS. Claude Code is a subscription service I pay to create the exact, niche, I need you to build a form that submits a blog post to Wordpress here’s my api key, here’s the word doc format it comes in, I’ll paste it in the chat and you make a paste from word button so I don’t have to manually enter the form and it works first try. That is the definition of software as a service. And it’s mine and it’s exactly what I need. Tomorrow I’ll need something else…
hyperpape 1 day ago||
Note that the author does not mention a single specific SaaS subscription he’s cancelled or seen a team cancel.

The only named product was Retool.

linsomniac 1 day ago||
We just had a $240/year renewal for teamretro.com come due, and while TeamRetro has a lot of components, we are only using the retro and ice breaker components. So I gave Claude Code a couple of prompts and I now have a couple static HTML pages that do the ice breaker (using local storage) and the retro (using a Google sheet as the storage backend, largely because it mimics our pre-teamretro process).

It took me no more than 2 hours to put those together. We didn't renew our TeamRetro

lelanthran 1 day ago|||
> It took me no more than 2 hours to put those together. We didn't renew our TeamRetro

Okay, so two hours with an LLM vs maybe 2.5 days without an LLM in the best-case scenario (i.e. LLMs gave you a 10x boost. I would expect it to be less than that though, like maybe a 2x boost) - it sounds like it was always pretty cheap to replace the SaaS, but the business didn't do it.

TBH, the arguments were never "It would take too long to do ourselves", it was always "but then we'd have to maintain it ourselves".

The place I am consulting at now just moved (i.e. a month ago) from their in-house built ticketing system ($0/m as it had not needed maintenance for over a year) to Jira (~$2k/m).

In this specific case, it was literally 0 hours to avoid paying the SaaS, and they still moved, because they wanted some modern features (billing for time on support calls, etc) and figured that rather than update their in-house system to add support hours costing (a day, at most) they may as well move to a system that already had it.

(Joke's on them though - the Jira solution for support hours costing is not near the level of granularity they need, even with multiple paid plugins).

Once again, companies aren't using SaaS because it's cheaper or quicker; they could already quickly replace their SaaS with in-house.

linsomniac 20 hours ago||
>.e. LLMs gave you a 10x boost. I would expect it to be less than that though, like maybe a 2x boost

I'm not a frontend guy, I'm an operations guy that sometimes does some backends. So it's likely a solid 2.5 days for me to build the pair of these, probably more I haven't touched Javascript in over a decade.

lelanthran 17 hours ago||
> I'm not a frontend guy, I'm an operations guy that sometimes does some backends. So it's likely a solid 2.5 days for me to build the pair of these, probably more I haven't touched Javascript in over a decade.

Right, understood and agreed, but this was not about you and your specific skills or lack thereof; your anecdote was in support of an argument that companies would stop their SaaS because LLMs enable them to build in house.

That was your argument, right?

So in the absence of LLMs, if the company wanted to stop paying for the SaaS, would they have chosen you to do the replacement, or someone who had recent experience in the tech?

Look, we are interested in comparing the time taken to replace the SaaS with an LLM, and the time taken to replace the SaaS without LLM assistance.

That's really the only two scenarios under discussion, so lets explore those exhaustively:

1. Without LLMs: In the worst case scenario, the company had to pay for 2.5 days of employee time with the best case being 1 day of employee time. Lets go with something in-between like 1.5 days of dev time.

2. With LLMs: The company pays for 0.5 days of employee time (includes the overhead of token cost/subscription).

The difference between the only two scenarios that we have is literally a single day of employee costs!

I am skeptical that the company failed to leave the SaaS earlier because they didn't want to eat the cost of a 1.5 paid days for an employee, but a difference of a single day of cost was enough to tip the scales.

linsomniac 7 hours ago||
>That was your argument, right?

I wasn't intending to make an argument, I was specifically replying to:

>does not mention a single specific SaaS subscription he’s cancelled

I was imagining it could start a thread of examples where it's happened.

>would they have chosen you to do the replacement, or someone who had recent experience in the tech?

I get what you're saying, but those aren't the only two options; they very likely would have chosen neither of those options. The resources we had available was an ops guy who is pretty handy with the LLMs.

I get the point you're making, I really do. My counterpoint is that there are some SaaSes out there that people can build replacements for by using the LLMs at no incremental cost.

>I am skeptical that the company failed to leave the SaaS earlier because they didn't want to eat the cost of a 1.5 paid days for an employee

Sure, I'd be skeptical about it when put that way as well. That's not how it played out however: We were having a retro and the guy running it said that our subscription was expiring the end of the month and wanted discussion about whether we wanted to purchase it for another year. 2 weeks later, before our next retro, I threw a prompt at Claude Code and asked a couple people to try out the result, incorporated their feedback and we ran the retro on it. We aren't planning to renew.

This was not something "the company" had a big discussion about; my boss made an offhand comment about it, and I did it as a side project while I was doing something else.

matwood 1 day ago||||
How is teamretro a product to begin with? I feel like these SaaS’s exploded like js libraries.
linsomniac 20 hours ago||
It is fine. We already had a retro process we were using, and teamretro didn't really enable us to change or improve our process so much as just continue doing our existing process. It is a solid product, but honestly we just used a google sheet prior to it and that worked fine as well.
nop_slide 1 day ago||||
Or just don’t do retro and save even more time and money!
mikeocool 20 hours ago|||
If you're a typical software engineer, that time probably cost your company more than $240.
osn9363739 12 hours ago||
I didn't look at the product. But $240/year is nothing for an org. Plus not only just the time to make it. What about the time fixing bugs? hosting costs? backups? I'm sure there will be products that can be replaced (possibly this one), but I'm not convinced the death of SaaS is here yet.
jonathanharel 1 day ago||
Good point! For me the only change that happened so far (because the agentic product was better) was switching from JetBrains to Cursor. I'm sure this will happen with more products I use in the future
alexeestec 14 hours ago||
SaaS was always just a transitional phase between desktop software and... this. We built entire businesses around being the interface layer, but if AI can interact with APIs directly, that whole layer gets compressed.

The optimistic angle nobody's exploring: maybe 'eating SaaS' means we finally escape the subscription hellscape where every basic function costs $29/month. If an AI agent can stitch together free/cheap APIs instead of forcing you into Notion/Airtable/Whatever, that's not destruction—that's evolution.

efitz 12 hours ago||
I’ve been saying this for months:

https://efitz-thoughts.blogspot.com/2025/08/the-effect-of-ll...

windex 1 day ago||
I dont think any opinion right now is going to be definitive. This is like mixing paint, the edges are still white, while the centre is colored.

What Iam seeing is that customers are delaying purchases of large expensive software. Prime example; SAP. ECC migrations to SaaS model RISE/GROW-PublicCloud are stalling, same with onprem S4 to RISE. I see a whole bunch of my customers instead go with retaining the core but modernize surround apps with intelligent custom apps without feature bloat. For now, SAP/oracle/whatever remains the system of record, the edges are going away. I guess the same is likely happening in other spaces.

This change is coming. Definitely. The current moats around SaaS will fall and the alternate ecosystem might not have moats at all.

weitendorf 1 day ago|
This is why I started working on an open source, generic protobuf sqlite ORM + CRUD server (with search/filtering) + type/service registry + grpc mesh, recently: https://github.com/accretional/collector Note: collector's docs are mostly from LLMs, partially because it's more of a framework for tool-calling LLMs than humans

Then this project lets you generate static sites from svelte components (matches protobuf structures) and markdown (documentation) and global template variables: https://github.com/accretional/statue

A lot of the SaaS ecosystem actually has rather simple domain logic and oftentimes doesn't even model data very well, or at least not in a way that matches their clients/users mental models or application logic. A lot of the value is in integrations, or the data/scaling, or the marketing and developer experience, or some kind of expertise in actually properly providing a simple interface to a complex solution.

So why not just create a compact universal representation of that? Because it's not so big a leap to go beyond eating SaaS to eating integrations, migration costs/bad moats, and the marketing/documentation/wrapper.

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