[outime]

That is, until a given SaaS becomes too greedy and someone identifies the core features people actually use, then spends a few weeks replicating them internally.

I think AI familiarity still varies a lot across companies and individuals. Small companies/startups often move much faster than large corporations, so that may also explain what you're seeing. Long before LLMs I worked at places where even monitoring solutions were implemented in-house because the vendors' pricing was extremely greedy.

My point is that I'm sure this will also change for some large corporations in the short to medium term. Not saying SaaS is doomed because it's obviously not and at the end of the day you want a battle-tested solution, but it does feel like the market will shrink.

[swiftcoder]

> That is, until a given SaaS becomes too greedy and someone identifies the core features people actually use, then spends a few weeks replicating them internally.

I think a lot of SaaS are actually pretty safe, if only due to organisations desiring to make compliance someone else's problem.

We don't pay $$$ for a SaaS just because it would be time consuming to replicate it - we pay it because we'd rather not have to add the in-house replacement to our SOC2/HIPAA/GDPR compliance audit every year, and legal prefers it because there is someone else to sue if things go sideways in those areas.

[ben_w]

Yeah, this is basically why I as a landlord have an agent who takes 10%+VAT just to know what the rules are and who to call when things go wrong, and then bills me on top for listing the property when empty, any works that need doing etc.

[outime]

I'm aware of the responsibility shifting here but even then my point still stands. I've seen some SaaS companies tighten their grip thinking "they'll never bother because of the regulatory burden" only to watch large customers walk away and build in-house solutions instead. Super common? No, but this was pre-LLM and slightly later.

Compliance is an important factor in customer retention, but the cost of the other side of the equation (technical implementation) has dropped significantly and in some cases could be what tips the balance.

[heisgone]

Greed and inefficiency is what define SaaS. Compare what Microsoft give you for 50 bucks per month vs Atlassian or any ticketing services. It's absurd. They can charge up to $80/month for what shouldn't cost more than $5.

[Ekaros]

Looking at some of the pricing and then multiplying it by 12 and ask question would you pay this for shrink wrapped software is bit eye opening. At least from not filthy rich Europen perspective.

Not to say that some products like MS aren't seemingly very good value. But on other side like chat and source control I do raise eye brow...