How we build software is changing: Are SaaS Companies Dead?

00:00:00: One discussion which of course has implications for all of us developers.

00:00:04: in the end that's kind of picking up steam recently as it seems to me is whether Most companies will build most software on their own In the future or not.

00:00:16: and it's not a new discussion.

00:00:17: It started maybe two Or three years ago already, but of course with those AI agents And the underlying AI models becoming more powerful all the time The question kind of becomes more important now.

00:00:31: because yes, I would absolutely say that we can see That more people Developers off course obviously especially are building their own software.

00:00:44: I mean for me in my companies We have definitely replaced various paid services For project management or sending out emails and more with our own solutions.

00:01:00: Now, of course I'm a developer so that's kind of easy for me!

00:01:28: all you need.

00:01:29: For example, I built a little background remover tool which i can use for my thumbnails to remove well guess what the background behind my face and i just vibe coded that because they don't care about the details.

00:01:42: if it goes wrong...i just see it then..it's not a crucial tool in any way.

00:01:49: so Many people can do that.

00:01:59: still not necessarily everybody because Not everybody far from.

00:02:04: Everybody knows about All these agentic tools and what they can do.

00:02:09: but yeah, definitely all developers or more tech savvy People can vibe code certain tools.

00:02:17: however there are a certain tools where I would not necessarily recommend vibe coding them.

00:02:24: For example a tool that sends out emails like a newsletter, there is stuff that can go wrong and you don't want to spam your audience or get them to unsubscribe.

00:02:45: And there is more.

00:02:47: For example, maybe you forgot to vibe code an unsubscription functionality so that people can unsubscribe.

00:02:55: not too good either.

00:02:56: There's more to consider here.

00:02:58: It's more complex and even if we ignore issues like this Even before that...there goes a lot into large scale email sending.

00:03:09: And it starts with actually knowing how to do that.

00:03:12: there are services like AWS, SES you can use and even if You Do Know It setting everything up properly There is more than just one click Now.

00:03:22: they're certainly our Services That make them a bit easier but still it requires A Bit of technical knowledge I would say in its not something Every little non tech related company will quickly do on Its own and it Will work Just fine.

00:03:36: And I think this is one important thing to consider when we.

00:03:40: Think about that question, which kind of software will be built by companies on their own versus?

00:03:47: Which kind of Software Will Be Purchased Now and In The Future?

00:03:53: the complexity Of The Task Of Course Plays A Very Important Role.

00:03:58: What Can Go Wrong?

00:03:59: How Bad Is It If it Goes Wrong?

00:04:02: You Sometimes Read That Vibe Coding Software is fun.

00:04:07: Maintaining is not and there's some truth to it!

00:04:11: The more important software is, obviously the more it hurts especially if you have no idea of what's going on here.

00:04:22: Of course bigger companies can tackle more ambitious tasks too.

00:04:28: they may be able to replace certain tools that are replaceable by less tech savvy companies or individual developers, but in those bigger companies there are new layers of software that will be harder to replace for compliance reasons.

00:04:47: Or again for complexity reason because we're talking about software like SAP and Salesforce which may be so deeply integrated into many systems.

00:04:59: you'd rather keep on paying than replacing it!

00:05:03: Now that may change over the next... I don't know, ten years or whatever.

00:05:08: Nobody can look into the future but i dont see all those large companies suddenly replacing all of their software they're using.

00:05:15: What we CAN see though on ALL levels no matter if were talking about LARGE COMPANIES OR INDIVIDUAL DEVELOPERS and so on is that SOME software IS being replaced And i think there's NO ARGUING ABOUT THAT!

00:05:28: Especially for Indie hackers, if your primary audience also were other developers it's getting way harder because the kind of software you are building and selling often is that can be replaced.

00:05:44: Now there still can be modes.

00:05:46: If you have some service thats not primarily about the software but about underlying data That may not come by or if its like a compliance or legally complex business Stuff like that.

00:06:01: You're not really paying for the software there, you are paying for something else and therefore naturally it's harder or impossible to replace.

00:06:09: well obviously not impossible but a lot harder.

00:06:12: so There is some mode there.

00:06:14: if the mode was just The software that solved A small problem That will be harder.

00:06:22: And I think that is one change we can already see with AI right now and a changed.

00:06:26: it will accelerate because what's possible today for developers, i believe Will to some extent at least soon also be possible For our businesses.

00:06:36: For normal people not everything.

00:06:38: of course the AWS email sending example may stay out their reach though maybe with help of other providers that make it easier.

00:06:46: It may not be out-of-the-reach in the future, but there are a lot utility tools small project management tools stuff like where I believe more businesses and people will vibe develop their own software just as two years ago having that produced images with AI, let's say headshots or anything like that where you could build a cartoon based on some images.

00:07:16: You upload.

00:07:17: such services would probably have worked fine or did work find one or two years ago and I think that is vastly quickly changing now because normal people have more possibilities of generating from their phones, because it's maybe integrated into the operating system or they can use them through their chat GPT subscription.

00:07:42: Most people are not paying for this but there is some free limits and more and more people may be paying so... This is a good example of a business model that worked amazingly two years ago And it's coming under a lot of pressure now, and I think we'll see the same for other services in software simply depending on what your mode is.

00:08:04: Now that's all not groundbreaking news!

00:08:07: It has important implications about which you have to think right now because our profession isn't just changing.

00:08:16: We're writing less code... Tackle code reviews, reading every line will very likely not do it in the future.

00:08:26: So that is changing but also where you work plays an important role and I know jobs are hard to come by these days And having a job is better than not having a drop obviously.

00:08:37: But if you were working at a company That builds one of these tools or that build software that looks To be more on the replaceable side That, of course kind is a warning signal and doesn't mean that you have to leave instantly but... ...that you have be cautious about your future planning so-to say.

00:08:59: Because this I think will accelerate!

00:09:01: And i do strongly believe there will always in the sense of next ten years super hard to tell these days But There WILL ALWAYS BE SOME SOFTWARE people will not build on their own because it's too important, to complex or Because It is Not Primarily About The Software.

00:09:21: But there Will Be Many Cases Where Companies People Will Actually Vibe Their Own Tools And Software Or Maybe Not Vibe It but Use Existing Development Skills To Replace software they used to pay for in the past.

00:09:39: So yeah, I think this is a trend than it is a Trend that is accelerating and It's therefore also a trend which means that Becoming self-employed by building software as a service solutions Is much much harder now.

00:09:53: obviously then was a couple of years ago because you really have To Think about what?

00:09:57: You can sell.

00:09:58: That offers A real benefit And dad is definitely more difficult Now Than it Used to be i'd say.