[JaggedJax]

Maybe it's mostly from AI, maybe it's mostly general economic cutbacks. I also feel like these "wrapper" style SaaS products are the first ones companies are dropping when they are looking to cut costs, and I think a lot of companies are looking to cut costs. I do agree with the overall conclusion either way, that System of Record products/companies are the most likely to survive. There are a lot of SaaS companies with questionable long-term businesses who are getting hit, but that was bound to happen.

[jordanb]

The stocks of a lot of these SaaS companies were priced on the expectation that they could become the next IBM: become entrenched with the customer and then hike prices until their eyes bleed.

A lot of companies have been too smart for that, and a lot of SaaS offerings are too small to be truly entrenched. Arguably the investment horizon is too short (IBM took decades getting to that point).

The only real vendors who managed to become the next IBM are the cloud providers.

[linkjuice4all]

I think it's a combination of budgeting, upward price pressure from the SaaS companies themselves, plus bringing things in-house through vibe coding, but there's another factor that I think is harming existing SaaS products. Many of them are becoming legacy solutions with AI bolted on top so they don't really feel that effective or next-level. The underlying tech might even be a generation older too - but the SaaS value-add is providing support, scaling, etc to maintain whatever some old tech that's still a requirement. At some point someone looks at all of these interconnected systems and just says 'start over'.

Vibe coding might not be supplanting all SaaS solutions but it's definitely shaking out "last-gen" solutions.

[namanyayg]

System of Records especially for boring industries is the way to go. What kind of wrapper SaaS are you seeing getting dropped?

[JaggedJax]

Analytical systems. I see a lot of add-on services that will add intelligence/analytics/etc and companies try them out to solve some issue they have and bounce off them frequently due to growing costs. I can only assume as mentioned that over time these are also easier for companies to in-house vibe-code as well, I just haven't seen a ton of that yet, but people are definitely trying which still shrinks the available pie.