"SaaS wasn't 'dead,' there was still a cost-benefit analysis to running and supporting in-house builds. But in-house was an option, and that factored into pricing negotiations. Perhaps more importantly, the competitive landscape had changed. AI had made it easier to develop and ship new features, so differentiation collapsed."
"Even if the tech and microeconomics were to evolve in line with this scenario, it is highly unlikely that the macro would, as this would require a set of extreme and improbable conditions to hold."
A research firm's speculative blog post predicted catastrophic SaaS market collapse by 2028 due to AI advancement, claiming unemployment would reach 10 percent and software pricing would plummet. The scenario imagined that AI-enabled feature development would eliminate competitive differentiation, forcing incumbents into destructive price wars. However, economists and industry analysts dismissed these predictions as unlikely, arguing that extreme macroeconomic conditions would be required for such outcomes. The SaaS-pocalypse theory gained temporary market attention, causing stock volatility, but skeptics contend that enterprise software will maintain value through cost-benefit analysis and that competitive dynamics, while intensified, won't fundamentally destroy the industry.
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