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Comment by ergocoder

3 hours ago

Probably never. There are a couple reasons:

1. We pay for saas, so we don't have to manage it. If you vibe-code or use these AI things, then you are managing it yourself.

2. Most Saas is like $20-$100/month/person for most Saas. For a software engineer, that maybe <1h of pay.

3. Most Saas require some sort of human in the loop to check for quality (at least sampling). No users would want to do that.

Number 2 is the biggest reason. It's $20 a month.... I'm not gonna replace that with anything.

Writing this message already costs more than $20 of my time.

I predict that the market will get bigger because people are more prone to automate the long-tail/last-mile stuff since they are able to

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ergocoder

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alwillis  1 hour ago

> 1. We pay for saas, so we don't have to manage it. If you vibe-code or use these AI things, then you are managing it yourself.

> 2. Most Saas is like $20-$100/month/person for most Saas. For a software engineer, that maybe <1h of pay.

    |Segment                   |Median Enterprise Price                   |
    |--------------------------|------------------------------------------|
    |Mid-market                |~$175/user/month                          |
    |Enterprise (<100 seats)   |~$470/seat/month implied (~$47K ACV)      |
    |Enterprise (100-500 seats)|~$312–$1,560/seat/month range (~$156K ACV)|

Enterprise contracts almost always include a platform fee on top of per-seat costs (67% of contracts), plus professional services that add 12–18% of first-year revenue.

So for a lot of companies, it's worth using AI to create a replacement.

  • mrbungie  1 hour ago

    > So for a lot of companies, it's worth using AI to create a replacement.

    I'll add the nuance that those might be big companies with slack capacity, or at least firms that already are at a point in their effort/performance curve where marginal effort injections in their core business are not worthy enough (a point that, without being big companies, would be actually weird). Even with AI and as processes become more efficient effort is at premium, and depending on your firm situation an man-hour used in your business might be a better use of effort and time that using it on non-core services.

codinhood  3 hours ago

Interesting, so you're saying Anthropic/Openai/etc will get a general solution that won't be hands off. The moat for other companies will be creating the specific, managed solution.

I can see that, assuming models don't make some giant leap forward.