SaaS is not dying
A Reddit discussion defending SaaS viability against claims it's dying, where the original poster argued that convenience and habit drive continued SaaS adoption despite AI competition. The community largely agreed while acknowledging AI will increase competition and raise quality standards rather than kill SaaS entirely.
Summary
The original post by u/hardesoul argued that SaaS is not dying, citing the industry's growth from $50 billion to $400 billion over 10 years and emphasizing that most people prefer buying solutions over building them due to convenience and brand loyalty. The poster compared this to note-taking apps and streaming services, where free alternatives exist but paid options thrive. They suggested AI is actually filtering out low-quality products rather than killing the industry. The community response was mixed but generally supportive. Several commenters agreed that convenience wins over cost savings, with u/listenhere111 from a Fortune 500 company explaining that enterprises avoid building internal solutions due to maintenance complexity and liability concerns. However, some raised valid concerns about AI's impact. u/jointheredditarmy argued that outsourced development could now recreate the core functionality most users actually need at much lower costs. u/PennyStonkingtonIII suggested small SaaS companies are vulnerable while larger ones with complex ecosystems will survive. Others like u/McBonderson shared examples of successfully replacing expensive SaaS with cheaper alternatives using AI assistance. The consensus emerged that while SaaS as a category will survive, the bar for quality is rising, competition is increasing due to lower development costs, and companies need to provide genuine value beyond basic functionality.
About this episode
This is a common thing, but what most people don’t realize is that 99% of people aren’t going to create their own programs, websites, apps, AI. They prefer to just buy it. Also all because there’s more low quality SaaS doesn’t mean that there’s more competition. There’s always been thousands of note apps since the computer came out. Yet people keep downloading and buying them, even when there’s literally a free note app on their phone. People cling to brands and connivence and community. If ...
Key Insights
- u/hardesoul argued that negative bias from failed entrepreneurs makes SaaS appear to be dying when successful founders rarely share their wins publicly
- u/listenhere111 from a Fortune 500 company stated that enterprises avoid building internal software due to maintenance, integration, and liability concerns
- u/jointheredditarmy claimed outsourced developers can now build the 5% of functionality most users actually need from complex SaaS platforms like Salesforce for around $20k
- u/McBonderson demonstrated real disruption by replacing a $1,600/month phone system with a $200/month self-hosted solution using AI guidance
- One commenter noted that AI is lowering development costs which increases competition rather than eliminating demand for software services
- u/PennyStonkingtonIII argued that small utility SaaS companies are vulnerable while large enterprise solutions with complex ecosystems will survive
- Multiple commenters agreed that convenience and habit retention keep customers paying for SaaS even when free or cheaper alternatives exist
- u/Emotional_Second1682 observed that markets don't die but raise quality standards, making previously 'good enough' solutions appear lazy
Topics
Transcript
[Original Post] (score: 50, upvote ratio: 93%, by u/hardesoul) Title: SaaS is not dying This is a common thing, but what most people don’t realize is that 99% of people aren’t going to create their own programs, websites, apps, AI. They prefer to just buy it. Also all because there’s more low quality SaaS doesn’t mean that there’s more competition. There’s always been thousands of note apps since the computer came out. Yet people keep downloading and buying them, even when there’s literally a free note app on their phone. People cling to brands and connivence and community. If anything all that AI is doing is showing that there’s a lot of bad ideas and washing away slop and making…
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