SaaS revolutionized software with its subscription-based model, but AI-driven automation, intelligent agents, and custom solutions are challenging its dominance.
I’d be curious to see how this change affects the prevailing investment paradigm. Over the last 20 years the SaaS model has dominated, and has crippled other innovations/biz ideas because investors expect SaaS level returns. Capex heavy innovation, models that rely on timelines that can’t be manipulated (Mother Nature etc)..
The age of rigid subscriptions is fading, and dynamic intelligence is taking its place.
I’d be curious to see how this change affects the prevailing investment paradigm. Over the last 20 years the SaaS model has dominated, and has crippled other innovations/biz ideas because investors expect SaaS level returns. Capex heavy innovation, models that rely on timelines that can’t be manipulated (Mother Nature etc)..
When cloud happened. Software became "traditional software" and new gen Software was renamed as "software as a service".
With AI, software will become intelligent, dynamic, adaptive and much more.
All of the AI powered stuff is still Software (yeah the young ones could say it's vibe coded and traditionally coded).
Most likely will still be run from cloud, or might be some reverse migration to on-prem and likely will evolve to edge instead of centralized cloud.
Will still run with recurring fee, tentatively with reduced cookie cutter subscriptions with more gain share models..
And buyers will still not own the software-AI.
Once SaaS 2.0 - supercharged with AI underneath becomes mainstream. SaaS 1.0 will likely be referred as traditional SaaS.
Apart from that SaaS isn't going anywhere yet..