alt Hacker NewsAI agents are starting to eat SaaS
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Checked out as soon as I saw the word "moat".
Classic tell this is tech bro-ese.
Yes when I need to convert music in one way or another I dont pay 0.1$ to do it and be over with it.
I run Cloude Code to build that SaaS for me locally over the span of few weeks, to get the same value.
This article makes no sense.
I have been the tech lead for two companies between 2015-2020.
The first company was a low margin business that sent home health care nurses to special needs kids and reimbursements came from Medicaid.
I was hired by the new director to modernize their aging in house Electronic Medical System built on FoxPro 1999 running on SQL Server 2000 - in 2016.
They had two “developers” who had been their for 10 and 20 years respectively who only knew Sql Server and FoxPro.
They also had some other software.
After doing some assessments of the situation, my report to the director and the CTO was that this company should not try to support a software development department and hire new people. Their margins are too small to be competitive or to keep people.
I suggested we outsource everything to other consulting companies - not staff augmentation. Let the consulting company do the entire implementation based on a Statement of Work.
The two “developers” role changed to “data analyst”. Even with AI I would have said the same thing today. Not every company needs to try to do software engineering. Every company does need to understand its data. [1]
The next company was a startup. I was adamant about blocking every developer who suggested any internal tool that we could get a well known SaaS to do or where AWS had a service that wasn’t firefly related to our product. To use the cliche - anything “that didn’t make the beer taste better”. My opinion wouldn’t have changed with AI.
The last thing I want is a bunch of bespoke internal vibe coded AI Slop that we have to support that is not in service to the product when we can find a reputable third party product.
And no that doesn’t mean I am going to trust some unknown one person SaaS company.
[1] 18 months into the job, I walked into the director’s office and told him, “let’s be honest, you all don’t need me anymore”. I purposefully put myself out of job. But boy did I have a story to tell during behavioral interviews at my next job at the startup and my interview for my job at BigTech after I left the startup.
Building any product requires endless highqu
This thread reeks of horse breeders saying cars won’t replace them.
honestly, if you are bootstrapping anything, you don't need saas now for the start
SaaS are swiss-army knife tools and you don't need all of this.
do you want to have a contact form on your site? Don't but the whole WP plugin for forms, ask AI for tiny, well-aligned plugin which will display form fields and process the input.
Do you need to A/B test your landing page? Just ask for another plugin which will switch page versions and track impressions.
No need for Hubspot when you have google sheets + AI-made plugin for this.
I’m glad the author of the article mentions a lot of the limitations of this idea, but taking the final sentence:
> But my key takeaway would be that if your product is just a SQL wrapper on a billing system, you now have thousands of competitors: engineers at your customers with a spare Friday afternoon with an agent.
I think it’s pertinent to point out that a lot of SaaS products are aimed at businesses and individuals who don’t have engineers at all.
AI agents aren’t going to disrupt the SaaS market for software intended for businesses like small business retail where the owners and staff have minimal technical knowledge and zero extra time.
I also think that some SaaS products are so cheap that about an hour of effort is too much. Is it worth a month of effort to vibecode a Dropbox alternative? Even some pretty complicated software that is untouchable by agents and engineers’ side projects like the Microsoft 365 suite and Jira are priced at under $20/month/user.
On the other hand, some entrenched solutions that aren’t all that complicated could be finding themselves with new, smaller competitors.
> If I want an internal dashboard, I don't even think that Retool or similar would make it easier. I just build the dashboard
Oh, child.... building is easy. Coordinating maintenance of the tool across a non-technical team is hell.
Man, AI tools are going to get so expensive, aren’t they.
that andressen horowitz article from 2011 is really beautiful
Another video about this today: https://www.youtube.com/watch?v=4Bg0Q1enwS4
Summary is that for agents to work well they need clear vision into all things, and putting the data behind a gui or not well maintained CLI is a hinderance. Combined with how structured crud apps are an how the agents can for sure write good crud apps, no reason to not have your own. Wins all around with not paying for it, having a better understanding of processes, and letting agents handle workflows.
> most SaaS products contain many features that many customers don't need or use. A lot of the complexity in SaaS product engineering is managing that - which evaporates overnight when you have only one customer (your organisation).
This is the key point. Sure, you don't have the chops to be able to replicate the SaaS product locally with Claude/Gemini, but you don't have to, because you're no trying to make a product that can handle N+1 workflows.
Another big long AI-generated article. Sheesh. Bonus points for replacing the emdashes with regular hyphens to try to cover it up.
Present day AI is a box that has these properties: a human has to create its inputs; a human has to verify its outputs; a human has to create the next input based on the last output. Extremely useful for sure, but this is not the kind of box you can use to scale a service delivered directly to end users who can't perform the activities labeled "human" in the sentence above.
> Agents don't leave
How wrong the author is about that! IMO As soon as the bubble bursts, which is already evident and imminent, these agents will raise their subscription fees to ridiculous amounts. And when that happens, entire organizations will abandon them and return to good ol' human engineering
Ah, yes. If the thing that is false is true, all kinds of interesting things happen! For example, if I became the queen of France, I could make people do silly dances! That is an interesting hypothesis that could play out in my imaginary world!
SaaS maintenance isn't about upgrading packages, it's about accountability and a point of contact when something breaks along with SLAs and contractual obligations. It isn't because building a kanban board app is hard. Someone else deals with provisioning, alerts, compliance, etc. and they are a real human who cannot hallucinate that the issue has been fixed when it hasn't. Depending on the contract and how it is breached, you can potentially take them to court and sue them to recover money lost as a result of their malpractice. None of that applies to a neural network that misreads the alert, does something completely wrong, then concludes the issue is fixed the way the latest models constantly do when I use them.
Let me give you an example of my workflow from tonight:
1. I had two text documents containing plain text to compare. One with minor edits (done by AI).
2. I wanted to see what AI changed in my text.
3. I tried the usual diff tools. They diffed line by line and result was terrible. I searched google for "text comparison tool but not line-based"
4. As second search result it found me https://www.diffchecker.com/ (It's a SaaS, right?)
5. Initially it did equally bad job but I noticed it had a switch "Real-time diff" which did exactly what I wanted.
6. I got curious what is this algorithm. So I asked Gemini with "Deep Research" mode: "The website https://www.diffchecker.com/ uses a diff algorithm they call real-time diff. It works really good for reformatted and corrected text documents. I'd like to know what is this algorithm and if there's any other software, preferably open-source that uses it."
7. As a first suggestion it listed diff-match-patch from Google. It had Python package.
8. I started Antigravity in a new folder, ran uv init. Then I prompted the following:
"Write a commandline tool that uses https://github.com/google/diff-match-patch/wiki/Language:-Py... to generate diff of two files and presents it as side by side comparison in generated html file."
[...]
"I installed the missing dependance for you. Please continue." - I noticed it doesn't use uv for installing dependencies so I interrupted and did it myself.
[...]
"This project uses uv. To run python code use
uv run python test_diff.py" - I noticed it still doesn't use uv for running the code so its testing fails.
[...]
"Semantic cleanup is important, please use it." - Things started to show up but it looked like linear diff. I noticed it had a call to semantic cleanup method commented out so I thought it might help if I push it in that direction.
[...]
"also display the complete, raw diff object below the table" - the display of the diff still didn't seem good so I got curious if it's the problem with the diffing code or the display code
[...]
"I don't see the contents of the object, just text {diffs}" - it made a silly mistake by outputting template variable instead of actual object.
[...]
"While comparing larger files 1.txt and 2.txt I notice that the diff is not very granular. Text changed just slightly but the diff looks like deleting nearly all the lines of the document, and inserting completely fresh ones. Can you force diff library to be more granular?
You seem to be doing the right thing https://github.com/google/diff-match-patch/wiki/Line-or-Word... but the outcome is not good.
Maybe there's some better matching algoritm in the library?" - it seemed that while on small tests that Antigravity made itself it worked decently but on the texts that I actually wanted to compare was still terrible although I've seen glimpses of hope because some spots were diffed more granularly. I inspected the code and it seemed to be doing character level diffing as per diff-match-patch example. While it processed this prompt I was searching for solution myself by clicking around diff-match-patch repo and demos. I found a potential solution by adjusting cleanup, but it actually solved the problem by itself by ditching the character level diffing (which I'm not sure I would have come up with at this point). Diffed object looked great but as I compared the result to https://www.diffchecker.com/ output it seemed that they did one minor thing about formatting better.
[...]
"Could you use rowspan so that rows on one side that are equivalent to multiple rows on the other side would have same height as the rows on the other side they are equivalent to?" - I felt very clumsily trying to phrase it and I wasn't sure if Antigravity will understand. But it did and executed perfectly.
I didn't have to revert a single prompt and interrupted just two times at the beginning.
After a while I added watch functionality with a single prompt:
"I'd like to add a -w (--watch) flag that will cause the program to keep running and monitor source files to diff and update the output diff file whenever they change."
[...]
So I basically went from having two very similar text files and knowing very little about diffing to knowing a bit more and having my own local tool that let's me compare texts in satisfying manner, with beautiful highlighting and formatting, that I can extend or modify however I like, that mirrors interesting part of the functionality of the best tool I found online. And all of that in the time span shorter than it took me to write this comment (at least the coding part was, I followed few wrong paths during my search for a bit).
My experience tells me that even if I could replicate what I did today (keeping motivated is an issue for me), it would most likely be multi-day project full of frustration and hunting small errors and venturing into wrong paths. Python isn't even my strongest language. Instead it was a pleasant and fun evening with occasional jaw drops and feeling so blessed that I live in SciFi times I read about as a kid (and adult).
Another post with no data, but plenty of personal vibes.
> The signals I'm seeing
Here are the signals:
> If I want an internal dashboard...
> If I need to re-encode videos...
> This is even more pronounced for less pure software development tasks. For example, I've had Gemini 3 produce really high quality UI/UX mockups and wireframes
> people really questioning renewal quotes from larger "enterprise" SaaS companies
Who are "people"?
The ffmpeg wrapper use case is interesting. Reusing some core software for speed and reliability but to get better usability by leveraging LLMs seems like the sweet spot for SaaS use cases. A lot of these CRM products are basically wrappers around DBs and sheets like core products with terrible UI. The new breed will solve the UI ease of use issues.
Yeah, when everyone can create a SaaS, noone will and will create the boutique thing you’re selling for their own purpose
The author teaches workshops for "AI" development. Next commercial please.
I stopped reading after too many references to tasks solvable by a 1-line invocation of a CLI tool like ffmpeg or pandoc.
I'm reading this thread's comments and a LOT of you are missing OP's point. OP is not describing the risk that your SaaS product is now easily cloned by your customers' internal devs (or startup competitors) armed with agents. The risk is that certain SaaS products (but not all) mostly exist to provide answers to end users' questions about data, answers that can now be obtained by providing the same raw data to an agent with a prompt.
[dead]
Oh no! Anyway.
I get and agree with a lot of skepticism (and I get where ad-hominem attacks come from:). I have AI shoved my throat at work and at home 24x7 and most of it not for my benefit, and the writer doesn't out as much rigor into writing as might be beneficial.
At the same time, to the core theme of the article - do any of us think a small sassy SaaS like Bingo card creator could take off now? :-)
https://training.kalzumeus.com/newsletters/archive/selling_s...