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AI agents are starting to eat SaaS

martinalderson.com

231–240 of 398 posts

Re: AI agents are starting to eat SaaS

#231

Earlier quoted context omitted.

Yes, because then I know the code is properly engineering, tested, maintained and supported. Generating code is one part of software engineering is a small part of SaaS.

I'd love for SaaS to stay thriving but the flip side is simply the harsh reality that my own second thought these days is immediately "how easily will an agent replace my idea? yea probably quite easily..."

Before AI, people would search for a free or open source alternatives before using a saas

Re: AI agents are starting to eat SaaS

#232
> If anything, I think we'll see (another) splintering in the market. Companies with strong internal technical ability vs those that don't.

A tangent, I feel, again, unfortunately, the AI is going to divide society into people who can use the most powerful tools of AI vs those who will be only be using chatGPT at most (if at all).

I don't know why I keep worrying about these things. Is it pointless?

Re: AI agents are starting to eat SaaS

#233
post #148

Earlier quoted context omitted.

> For one thing, the threat model assumes customers can build their own tools. That's not the threat model. The threat model is that they won't have to - at some point which may not be right now. End users want to get their work done, not learn UIs and new products. If they can get their analysis/reports based on excels which are already on SharePoint (or wherever), they'd want just that. You can already see this hap…

The president of a company I work with is a youngish guy who has no technical skills, but is resourceful. He wanted updated analytic dashboards, but there’s no dev capacity for that right now. So he decided he was going to try his hand at building his own dashboard using Lovable, which is one of these AI app making outfits. I sent him a copy of the dev database and a few markdown files with explanations regarding cer…

Totally!

I have also seen multiple similar use cases where non-technical users build internal tools and dashboards on top of existing data for our users (I'm building UI Bakery). This approach might feel a bit risky for some developers, but it reduces the number of iterations non-technical users need with developers to achieve what they want.

Re: AI agents are starting to eat SaaS

#234
post #148

I'm CTO at a vertical SaaS company, paired with a product-focused CEO with deep domain expertise. The thesis doesn't match my experience. For one thing, the threat model assumes customers can build their own tools. Our end users can't. Their current "system" is Excel. The big enterprises that employ them have thousands of devs, but two of them explicitly cloned our product and tried to poach their own users onto it.…

> For one thing, the threat model assumes customers can build their own tools. That's not the threat model. The threat model is that they won't have to - at some point which may not be right now. End users want to get their work done, not learn UIs and new products. If they can get their analysis/reports based on excels which are already on SharePoint (or wherever), they'd want just that. You can already see this hap…

The Excel holy grail. Dashboard are an abstraction, SaaS is an abstraction of an abstraction from the pov of customers suffering from a one size fits all. Shell scripts generated by LLMs that send automated a customized reports via email will make a lot of corporate heros. No need to login, learn and use the SaaS in many instances for decisions makers.

Re: AI agents are starting to eat SaaS

#235

Earlier quoted context omitted.

SaaS products rely on resisting commoditization. AI agents defeat that.

Yes, except for the fact that any non-trivial saas does non-trivial stuff that an agent will be able to call (as the 'secretary') while the user still has to pay the subscription to use.

Will the SaaS also use LLMs? If so it opens the questions, why not and do we really need, as the article points out.

Re: AI agents are starting to eat SaaS

#237

I'm CTO at a vertical SaaS company, paired with a product-focused CEO with deep domain expertise. The thesis doesn't match my experience. For one thing, the threat model assumes customers can build their own tools. Our end users can't. Their current "system" is Excel. The big enterprises that employ them have thousands of devs, but two of them explicitly cloned our product and tried to poach their own users onto it.…

Our sales teams heres the "we'll just build it internally" or "we can just throw it into an LLM" all of the time.

Yes, certain parts of our product are indeed just lightweight wrappers around an LLM. What you're paying for is the 99% of the other stuff that's (1) either extremely hard to do (and probably non-obvious) (2) an endless supply of "routine" work that still takes time (3) an SLA/support that's more than "random dev isn't on PTO"

Re: AI agents are starting to eat SaaS

#238

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.

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 m…

If you're a typical software engineer, that time probably cost your company more than $240.

Re: AI agents are starting to eat SaaS

#240

I'm CTO at a vertical SaaS company, paired with a product-focused CEO with deep domain expertise. The thesis doesn't match my experience. For one thing, the threat model assumes customers can build their own tools. Our end users can't. Their current "system" is Excel. The big enterprises that employ them have thousands of devs, but two of them explicitly cloned our product and tried to poach their own users onto it.…

> I believe that agents are a multiplier on existing velocity, not an equalizer.

Development tooling improvements usually are a temporary advantage end up being table stakes after a bit of time. I'm more worried that as agentic tooling gets better it obsoletes a lot of SaaS tools where SaaS vendors count on users driving conventional point and click apps (web, mobile and otherwise). I'm encouraging the companies I'm involved with to look to moving to more communication driven microexperience UIs - email, slack, sms, etc instead of more conventional UI.

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