alt Hacker NewsThis article made no sense to me. It is talking about AI-generated code eating SaaS. That's not what is going to replace SaaS. When AI is able to do the job itself — without generating code — that's what is going to replace SaaS.
AI-generated code still requires software engineers to build, test, debug, deploy, secure, monitor, be on-call, handle incidents, and so on. That's very expensive. It is much cheaper to pay a small monthly fee to a SaaS company.
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> AI-generated code still requires software engineers to build, test, debug, deploy, ensure security, monitor, be on-call, handle incidents, and so on. That's very expensive. It is much cheaper to pay a small monthly fee to a SaaS company.
Yeah it's a fundamental misunderstanding of economies of scale. If you build an in-house app that does X, you incur 100% of the maintenance costs. If you're subscribed to a SaaS product, you're paying for 1/N % of the maintenance costs, where N is the number of customers.
I only see AI-generated code replacing things that never made sense as a SaaS anyway. It's telling the author's only concrete example of a replaced SaaS product is Retool, which is much less about SaaS and much more about a product that's been fundamentally deprecated.
Wake me up when we see swaths of companies AI-coding internal Jira ("just an issue tracker") and Github Enterprise ("just a browser-based wrapper over git") clones.
Perhaps OP's argument still applies to dev-oriented SaaS.
Are you as a dev still going to pay for analytics and dashboards that you could have propped up by Claude in 5 minutes instead?
The bit about building an internal app for eg marketing or sales is super fun. Getting calls starting at 8am EST because they then (reasonably!) expect it to work less so. Software still has an enormous ktlo tax and until that changes, I'm skeptical about the entire thesis.
Not to mention the author appears to run a 1-2 person company, so ... yeah. AI thought leadership ahoy.
Note that there is zero actual sales/renewal data quoted in the article so this is all the authors vibes based on how he has been able to vibe code a few things for a team of one person to use