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AI is killing B2B SaaS

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Re: AI is killing B2B SaaS

#161

Post by bandrami »

physicsguy wrote: post #141
d_watt wrote: post #2

I think one of the interesting things here is that AI doesn't need to be able build B2B SaaS to kill it. So much of the overhead of B2B SaaS companies is thinking about multitenancy, intergrating with many auth providers and mapping those concepts to the program's user system, juggling 100 features when any given customer only needs 10 of them, creating PLG upsell flows to optimize conversions, instrumenting A/B test…

Until a given company decides they need access control for their contractors that's different from their employees, etc. etc. etc. - seen it all before with internal often data scientist written applications that they then try to scale out and run into the security nightmare and lack of support internally for developing and taking forward. Usually these things fizzle out when someone leaves and it stops working.

Bingo; the exact same arguments against regular-coding it in-house apply to vibe-coding it in-house.

Re: AI is killing B2B SaaS

#162

Post by bandrami »

It's a tale as old as time that developers, particularly junior developers, are convinced they could "slap together something in one weekend" that would replace expensive SAAS software and "just do the parts of it we actually use". Unfortunately, the same arguments against those devs regular-coding a bespoke replacement apply to them vibe-coding a bespoke replacement: management simply doesn't want to be responsible for it. I didn't understand it before I was in management either, but now that I'm in management I 100% get it.

Re: AI is killing B2B SaaS

#163

Post by healthy_throw »

MrDresden wrote: post #138
stronglikedan wrote: post #113

Earlier quoted context omitted.

B2B is a large corp is like you describe, but it's very different in SMBs, and there are many, many more SMBs.

My experience is that SMBs are generally not run by people who feel confident doing any kind of self managed IT. No amount of LLM usage is going to change them into full stack vibe coders who moonlight as sysadmins. I just don't see it happening. Not until, that is, a new generation, that has grown accustomed to the tech, takes over. Until then the current SMBs will for the most part fulfill their IT needs from SaaS…

I assume a vibe coded agent would moonlight as the sysadmin to maintain the vibe coded LoB app.

Re: AI is killing B2B SaaS

#164

Post by misiti3780 »

bandrami wrote: post #162

It's a tale as old as time that developers, particularly junior developers, are convinced they could "slap together something in one weekend" that would replace expensive SAAS software and "just do the parts of it we actually use". Unfortunately, the same arguments against those devs regular-coding a bespoke replacement apply to them vibe-coding a bespoke replacement: management simply doesn't want to be responsible…

sorry, what do you mean?

Re: AI is killing B2B SaaS

#165

Post by llmslave »

AstroBen wrote: post #101
llmslave wrote: post #97

Earlier quoted context omitted.

how dont people understand? if you have a VC funded b2b saas, you need to charge huge margins for the investors to get a return. now, small teams can vibe code a replacement and charge 90% less money. AI is going to kill saas margins. i literally cannot understand why people keep repeating that non tech companies will build their own software, thats not the bear case for saas

Atlassian: surviving since 2002 because no-one could previously build a kanban board or project management app

no the difference is 90% cost savings, which was previously impossible

Re: AI is killing B2B SaaS

#166

Post by medius »

A link shortener is such an easy thing to code, it's essentially one database table with a redirect. To add to that, there are many open source libraries to implement link shortening, including analytics and stuff. Even then Bitly and Rebrandly have customers (from their website) like Toyota, Cisco, Oracle, Monday.com, New York Times, etc.

Are these companies unable to build a link shortener? It's also so easy to migrate off shortener service. If they can and still choose to use these shortening services, there must be other reason. And that reason is that they simply don't want to. This has nothing to do with AI.

I run a software company and one of the reasons customers say they want to migrate from their homegrown spreadsheet is because the guy who built it left. A freaking spreadsheet!

Such blog posts and probably many comments here are the perfect answer to "Tell me you don't run a real business without telling me you don't run a real business"

Re: AI is killing B2B SaaS

#167

Post by TuringNYC »

mbesto wrote: post #123
kachapopopow wrote: post #86

Earlier quoted context omitted.

hard disagree, several b2b categories are going extinct because AI just completely replaced them. I mean if we want recent examples just look at tailwindui since it's technically a SaaS.

> we want recent examples just look at tailwindui since it's technically a SaaS. This is a terrible example. Show me someone ripping out their SAP ERP or SalesForce CRM system where they're paying $100k+ for a vibe coded alternative and I'll believe this overall sentiment.

>> This is a terrible example. Show me someone ripping out their SAP ERP or SalesForce CRM system where they're paying $100k+ for a vibe coded alternative and I'll believe this overall sentiment.

I cannot imagine an SMB or fortune 500 ripping out Salesforce or SAP. However, I can see a point-tool going away (e.g., those $50/mo contracts which do something tiny like connect one tool to another.)

Re: AI is killing B2B SaaS

#168

Post by jonwinstanley »

bandrami wrote: post #162

It's a tale as old as time that developers, particularly junior developers, are convinced they could "slap together something in one weekend" that would replace expensive SAAS software and "just do the parts of it we actually use". Unfortunately, the same arguments against those devs regular-coding a bespoke replacement apply to them vibe-coding a bespoke replacement: management simply doesn't want to be responsible…

So you think this downturn will be short lived?

When management realise that the vibe coded projects are not maintainable, SAAS will be as popular as ever

Re: AI is killing B2B SaaS

#169

Post by kittikitti »

I disliked how SaaS CEO's were decrying the death of engineers. Their coordinated layoffs over the past years or so was excruciating to watch and experience. Their language was aggressive and inflammatory.

Although the article may also be hyperbolic, I'm not going to comment on reasons why it might be. Instead, I will agree, and think SaaS companies stock performance this year will be proof. Sure, it might not be the collapse that AI doomers are hoping for, but all the FUD they spread over the past few months to years will signal that they're not insulated from it. They made their cake, now they have to eat it too.

Re: AI is killing B2B SaaS

#170

Post by vladms »

misiti3780 wrote: post #164
bandrami wrote: post #162

It's a tale as old as time that developers, particularly junior developers, are convinced they could "slap together something in one weekend" that would replace expensive SAAS software and "just do the parts of it we actually use". Unfortunately, the same arguments against those devs regular-coding a bespoke replacement apply to them vibe-coding a bespoke replacement: management simply doesn't want to be responsible…

sorry, what do you mean?

If I understand correctly many organizations will not develop original stuff internally, because nobody internally wants to be the one is shouted at if something goes wrong.
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