[_diyar]

When people say ”AI is Killing SaaS”, that does not have to mean ”Claude Code can one-shot your full stack“. More likely it means: AI code is going to distort the supply curve such that

1) previously healthy surplus in the SaaS market is shrinking

2) established SaaS companies have lost all existing moats

3) due to the previous two points, investors are reluctant to spend new dollars in this market to expand or retain market share, making life in those companies miserable.

> But the path forward is brutal

And soon™ this is coming to your industry as well!

[calvinmorrison]

> previously healthy surplus in the SaaS market is shrinking

Margins that were very attractive before, but many industries have small margins and work just fine. restaurants abound on tiny margins.

[jaredklewis]

I mean define "work." Restaurants are a famously good way to light money on fire. IIRC something like half of restaurants go bust within the first five years.

So I don't think anyone is going to be celebrating if the message is "Don't worry guys, SaaS businesses are now like restaurants: low margin and high risk."

[theturtletalks]

Except restaurants bring tangible value and revenue every day. How many SaaS are losing money but bank-rolled by VC funds and are valued at a way higher multiple than restaurants are?