
Saas apps are going to die!
So I was talking to my friend who's exec at one of the Saas companies. He is not very optimistic about the future
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Shift in Functionality: SaaS apps are often reduced to CRUD (Create, Read, Update, Delete) databases with business rules, which AI agents could replace. Like Satya Nadella predict the collapse of traditional business apps.
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Economic Pressures: High upfront SaaS costs, low utilization, and resistance from upper management to renewing unused licenses are challenging seat-based pricing models.
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AI's Impact: AI introduces both opportunities and challenges for SaaS: It may add value but be hard to monetize due to competitive table stakes and alternative new age companies whose cost structures are completely different from the existing companies with bloated business teams.
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AI-enhanced features could raise seat prices but also commoditize certain functionalities. High inference costs may pressure margins. LLMs could reduce switching costs for replacing SaaS platforms.
All in all, the existing Saas companies are f*cked.

Only thing that might change (and I think it has nothing to do with AI) is a shift from seat based pricing to usage based. Companies will keep buying software for their needs. If you think deeply, AI agents are nothing but another category of SaaS.

First point I totally disagree with. I am building AI agents for last 1 yr. I agree that AI can replace crud operation, but for that you need to build agents which is basically intelligent crud operation. Nothing more. It will create more agentic SaaS.