Aleksei Ivanov

SaaS is dead, long live SaaS

There has been a consensus that SaaS (Software-as-a-Service) model is becoming obsolete. Investors and people who have discovered deep learning neural networks just yesterday are very excited that they don’t have to pay large amounts of money to plan, develop, integrate and support software systems.

“The AI will just write software for everyone — tailored to every individual needs.”

The issue, however, is not in writing the software. It’s not even in deploying.

Every person nowadays can buy a cheap sewing machine, some material and some thread. Why does more than 90% of the people buy ready made clothes, even if it is not as craftful?

Because it is convenient.

Even better example: any one person can change filters in their car, or wash it. I mean, you just need some water, a mop and some cleaning material.

…and an hour of your time.

I reckon you can see the pattern. Value proposition of SaaS was never outsourced software development. The value was keeping it running, up-to-date and free of security issues.

Maybe AI in the future will be able to do it. But something tells me that it will be a SaaS with AI that will be building your SaaSes.