While recent headlines pointing to ‘the death of SaaS’ are clearly overstated, they are not entirely misplaced. For the last 2 decades, software companies have benefited from relatively stable and predictable revenue. However, the recent SaaS-pocalypse is calling into question the industry’s durability. The common theme behind all of this is that software is no longer scarce. Code is easier to access, building products is faster, and AI is making it easier to adopt tools from the ground up. As a result, software is being created and used much more frequently, which is starting to put pressure on the traditional SaaS model.

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• AI, open-source tools and faster development processes are rapidly increasing the supply of software.
• Differentiation between products is narrowing as features become easier to replicate and build.
• Tech layoffs reflect a shift from headcount-driven growth to automation and efficiency.
• For investors, this ultimately means less predictable returns, with a wider gap between winners and losers across software companies.