The SaaS Reckoning: Why AI Disrupts Pricing, Not Viability

AI's ability to generate functioning business software in minutes is collapsing entry barriers to traditional SaaS, triggering justified market fears of commoditization. Yet the real cost of enterprise software lies in the unglamorous 80-90% spent on maintenance, security, compliance, and support—work that remains resistant to AI automation. The market is right to worry about SaaS pricing models and margins, but wrong to declare the sector dying; instead, expect rapid consolidation toward well-capitalized players.