Writing software has become incredibly easy today, thanks to the proliferation of AI-powered code-generation tools like GitHub Copilot, Kursor, Vercel’s V0, and GPT Engineer. Combine that with the rise of low-code/no-code platforms, and it’s no surprise that debates about the future of Software-as-a-Service (SaaS) have emerged.
Many pundits are now proclaiming the death of the SaaS industry, fueled by the idea of “why rent when you can build?” They argue that businesses, armed with these new technologies, can build and customize software in-house with fewer resources, bypassing the need for external SaaS providers.
High-profile examples, like Klarna decommissioning some SaaS services from its enterprise, only add fuel to this fire.
So, is SaaS dead?
I don’t think so.
While it’s true that AI and no-code platforms have made development more accessible, they haven’t eliminated the need for comprehensive, secure, and continuously evolving services.
SaaS isn’t just about the software—it’s an ecosystem that offers businesses instant access to powerful tools, enterprise-grade security, and seamless scalability, without the heavy lifting required to build, maintain, and update those solutions in-house.
Why Did You Choose SaaS in the First Place?
Let me ask you this: Why did you choose a SaaS service in the first place? My guess is that the following were some of the primary reasons you considered:
Focus on Core Competencies
Unless you’re a Payment Tech SaaS company, it makes zero sense for you to write your own payment processing solution—simply because that’s not your core competency. Choosing a payment processing SaaS solution (like Stripe) allows you to focus on what you do best.
Instead of sinking time and resources into building, maintaining, and securing software, you can focus on your core competencies, driving innovation and growth where it matters most. SaaS takes the burden of software management off your shoulders, letting you focus on strategy and execution.
While AI tools can undeniably assist with software development, they don’t replace the ongoing responsibility of maintaining, securing, and evolving these systems. The time and effort saved by AI in development can quickly be negated by the resources still required to manage infrastructure, updates, and security. SaaS providers continue to handle all of this for you, allowing businesses to truly focus on their core mission.
Move Fast and Avoid the Complexities of Deployment and Infrastructure Management
When you chose SaaS, a major factor was likely the need to move fast and avoid the technical complexities that come with deployment and infrastructure management. SaaS provides immediate access to powerful, industry-standard tools without the need for lengthy development cycles or complex setups. Whether onboarding a small team or scaling across multiple departments, SaaS solutions enable rapid deployment with minimal disruption, allowing your business to hit the ground running.
While AI can accelerate coding and development, it doesn’t simplify the challenges of integrating custom-built solutions into existing ecosystems. Deployment is often fraught with testing, troubleshooting, and infrastructure configuration. SaaS solutions, by contrast, come pre-configured and battle-tested, offering businesses a faster, hassle-free path to productivity without the infrastructure headaches.
Security and Compliance? No Problem.
When you chose SaaS, it wasn’t just about convenience—it was about trusting experts with the critical aspects of security and compliance. You were fully aware of the complexities involved but didn’t have the resources, expertise, or desire to manage them in-house. SaaS providers invest heavily in enterprise-grade security, regulatory compliance, and continuous monitoring, offering a level of protection that would be difficult and costly to replicate internally.
While AI can certainly assist with certain security tasks, it doesn’t provide the full-scale infrastructure, 24/7 monitoring, and regulatory expertise needed to ensure compliance and prevent breaches. SaaS solutions come with these built-in safeguards, giving you peace of mind that your business is secure and compliant with the latest industry standards.
Cost-Efficiency and Scalability
One of the main drivers behind your decision to choose SaaS was the need for a cost-efficient and scalable solution. SaaS provides a flexible pricing model—allowing you to pay only for what you use—while avoiding the large upfront costs associated with building and maintaining custom software. As your business grows, SaaS effortlessly scales with you, ensuring that you have the right amount of resources at any given time without the headache of managing infrastructure.
While AI can help streamline development, it doesn’t automatically lower the costs associated with infrastructure, scaling, and maintenance. Custom-built software, even AI-assisted, still requires continuous monitoring and resource allocation to handle growth. SaaS, by contrast, offers seamless scalability without the hidden expenses, making it an ideal long-term solution for businesses looking to grow efficiently.
Some folks may bring up the famous “Bell Curve,” where once you reach a certain scale, it becomes more efficient to do things in-house—and quite honestly, I will really look forward to that.
However, for most businesses, reaching that point is a long way off. Until then, the cost-efficiency and scalability that SaaS offers provide the perfect balance of affordability, flexibility, and convenience, allowing companies to grow without unnecessary complications. SaaS gives you the tools to thrive now, and when that scale comes, you’ll be in a strong position to evaluate whether it’s time to take things in-house or continue reaping the benefits of SaaS solutions.
Conclusion
In a world where AI and low-code/no-code platforms are rapidly transforming how we build software, it’s tempting to question the future of SaaS. Yet, while these technologies have made development more accessible, they haven’t replaced the need for SaaS solutions. From allowing businesses to focus on their core competencies, to avoiding the headaches of deployment and infrastructure management, to providing security and compliance at scale, SaaS continues to deliver unmatched value.
Moreover, SaaS offers the cost-efficiency and scalability that growing businesses need to thrive. While some may eventually reach the point where in-house solutions become more practical, for the majority of organizations, SaaS remains the most efficient and flexible path forward. AI may accelerate innovation, but SaaS is the proven foundation that allows businesses to move fast, stay secure, and scale with confidence.
SaaS isn’t dead—far from it. It’s evolving alongside new technologies and continues to be the backbone of countless business operations.
