AI is killing B2B SaaS • Hacker News Board

Re: AI is killing B2B SaaS

#131

Post by jongjong » Wed, Feb 04, 2026, 9:22 PM UTC

Just because it's possible to build equivalent software by vibe coding doesn't necessarily mean that companies will stop using SaaS. There are multiple reasons why...

First of all, many big companies pay a fortune to use inferior SaaS solutions instead superior Open Source solutions; possibly because one of their CTO may have received kickbacks or promises of a lucrative job at the SaaS provider as a consequence of this deal. There are a lot of politics going on behind the scenes when it comes to procurement.

Execs at big corporations are often looking for plausible ways to spend investors' money in a way that they can capture some of it for themselves. If they choose open source or they choose cheap vibe coded solutions; there is not much money changing hands. No opportunities for insiders to covertly monetize.

And then there are a lot of security implications to using a complex vibe coded app. The AI won't be able to identify the vulnerability in any decent sized codebase unless you know what you want it to look for.

Re: AI is killing B2B SaaS

#132

Post by swiftcoder » Wed, Feb 04, 2026, 9:23 PM UTC

Until Claude Code comes with indemnity insurance for HIPAA / GDPR / etc… B2B SaaS is here to stay. You want me to convince my auditor that the vibe-coded in house software handles PII correctly?

Making the audit someone else’s problem is 90% of the ‘buy’ value in ‘build vs buy’

Re: AI is killing B2B SaaS

#133

Post by CuriouslyC » Wed, Feb 04, 2026, 9:24 PM UTC

AI isn't killing SaaS exactly, but instead of selling UIs, SaaS companies are going to have to focus on infrastructure and data. You have to host stuff somewhere, so there's an inescapable cost and transaction that has to take place. If businesses can pay one bill for infra + data management and get nice apps and stuff on top of that (without being locked in), that makes more sense than trying to roll stuff together even if you have a platform team.

Re: AI is killing B2B SaaS

#134

Post by orochimaaru » Wed, Feb 04, 2026, 9:24 PM UTC

echelon wrote: post #98

falloutx wrote: post #95

Earlier quoted context omitted.

> And then you have extremely large amounts of unplanned spend and engineering to get around them. I have no idea how you are spending "large amounts" of unplanned spend on Saas products. Every company I worked for had Saas subscription costs being under 1% of capex. Unless you add AWS, which is actually "large amounts" but good luck vibe coding that.

Metrics at a fintech processing billions of dollars of daily GPV, plus the signals from every microservice in the constellation are enormous. Huge scale time series data. We had an in-house system that worked, but it was a two pizza team split between time series and logging. "Internal weirdware" got thrown around a lot, so we outsourced to SignalFx for a few years. It was bumpy. I liked our in-house system better, a…

What agents are you using? If you stick to opentelemetry and open source agents and develop a collector infrastructure - You can switch across different vendors with lower impact and ramp off time.

Your supply chain is messed up. You need sign longer contracts with price guarantees.

Re: AI is killing B2B SaaS

#135

Post by vonneumannstan » Wed, Feb 04, 2026, 9:25 PM UTC

kriro wrote: post #78

I'd actually say the opposite is the case. B2B (even SaaS) is probably the most robust when it comes to AI resistance. The described "in house vibe coded SaaS replacement" does not mirror my experience in B2B at all. The B2B software mindset I've encountered the most is "We'll pay you so we don't have to wrestle with this and can focus on what we do. We'll pay you even more if we worry even less." which is basically…

So how much Constellation Software stock are you buying since the market seems to think they are dead in the water after a 50% drawdown?

Re: AI is killing B2B SaaS

#136

Post by mbesto » Wed, Feb 04, 2026, 9:26 PM UTC

1. This isn't rooted in data but anecdotes "One Series E CEO told me that they’re re-evaluating the quarterly renewal of their engineering productivity software because they along with an engineer reimplemented something using Github and Notion APIs. They were paying $30,000 to a popular tool3 and they were not going to renew anymore."

2. These anecdotes are about tech startups spend, not your . Nor or they grounded in data that says "we interviewed 150 SMB companies and 40% of them have cancelled their SaaS subscriptions and replaced it with vibe coded tools"

3. "Analysts are writing notes titled “No Reasons to Own” software stocks." - there is just one analyst saying this: https://finance.yahoo.com/news/no-reasons-own-software-stock...

4. Most of these SaaS tech stocks have been trading at all time highs...this smells of "explain something very complex with a simple anecdote"

EDIT: Oh lol, the author has a vibe coding SaaS offering...there ya go.

Re: AI is killing B2B SaaS

#137

Post by gradus_ad » Wed, Feb 04, 2026, 9:28 PM UTC

One problem with centrally produced and distributed software is that a small subset of users demanding certain features results in feature bloat for everyone. Costs for all features are shared by all users.

Probably one way SaaS companies will adapt is to break up their offerings into more modular low cost components. While many customers will end up paying less, the addressable market will probably increase because of the new low cost options.

Re: AI is killing B2B SaaS

#138

Post by MrDresden » Wed, Feb 04, 2026, 9:29 PM UTC

stronglikedan wrote: post #113

kriro wrote: post #78

I'd actually say the opposite is the case. B2B (even SaaS) is probably the most robust when it comes to AI resistance. The described "in house vibe coded SaaS replacement" does not mirror my experience in B2B at all. The B2B software mindset I've encountered the most is "We'll pay you so we don't have to wrestle with this and can focus on what we do. We'll pay you even more if we worry even less." which is basically…

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 businesses (of which I think there will be more due to LLMs lowering the barrier for those of us who feel confident in our coding and sysadmin skills already).

Re: AI is killing B2B SaaS

#139

Post by physicsguy » Wed, Feb 04, 2026, 9:29 PM UTC

I just don't buy it.

Most people who've been in a business SaaS environment know that writing the software is relatively the easy part aside from in very difficult technical domains. The sales cycle + renewals and solution engineering for businesses is the majority of the work, and that's going nowhere.

Re: AI is killing B2B SaaS

#140

Post by paxys » Wed, Feb 04, 2026, 9:31 PM UTC

While the author is wildly overstating things, I do think AI is striking at the heart of the SaaS problem, which is the business model of "pay us $10-100+ per employee per month in perpetuity or we will hold all your data and your company's operations hostage". There is always going to be value in good software, but it is shitty vendors relying on the lock-in effect that are in danger. And good riddance.

The other issue is valuations - B2B SaaS stocks have never been rooted in reality, and the 100+ P/E ratios were always going to come down to earth at some point.