AI Is Killing The SaaS Model

I recently thought about a SaaS subscription. I asked myself: "Could I build this myself?"

The answer is often yes.

Building software used to require deep technical skills and months of work. SaaS products existed because most people could not build their own tools.

AI changed that.

A junior developer can now ship a functional app in days. A student can build what used to require a whole startup.

If anyone can build software, why pay for it?

Before I subscribe to a tool, I ask three questions:

  • Do I need all the features or just 20%?
  • Can I build a light version for my specific needs?
  • Is the subscription worth the maintenance?

I often choose to build my own version. It is faster to build a custom solution than to change my workflow to fit a generic product.

Why pay $12 a month for 80% utility when I can build 100% utility in a weekend?

Simple, single-purpose tools are in trouble. If your only value is "we wrote the code so you do not have to," AI removed your advantage.

This applies to:

  • Form builders
  • Invoice generators
  • Basic project trackers
  • Simple landing page builders

The survivors will offer things AI cannot easily replicate:

  • Network effects
  • Data moats
  • Deep ecosystem integrations
  • Compliance and trust
  • Massive scale infrastructure

Companies like Stripe or Figma are safe because they are hard to replicate alone. A $9 monthly form builder is not.

Ask yourself this: Could a developer with AI replicate your core value in a weekend?

If the answer is yes, you have a problem.

The market is splitting into two groups:

  1. Personal, custom tools built by individuals for themselves.
  2. Platform-scale products with massive infrastructure and data.

The middle ground is disappearing. Generic, bloated, and expensive SaaS tools will get squeezed.

This is good for users. We no longer have to pay for tools that are too generic.

Do you build your own tools now? Or do paid products still have the edge?

Source: https://dev.to/josaphatstar/ai-is-killing-the-saas-model-and-i-think-thats-a-good-thing-4cna

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