AI Makes Rewriting Code Cheap, Threatening Traditional SaaS Pricing
bendee983 · x · 2026-08-12
The author points out that AI will put downward pricing pressure on traditional SaaS companies. While SaaS won't disappear, market dynamics will shift. A boom in Custom SaaS (CSaaS) is expected, where small engineering teams use AI to build highly niche software at very affordable costs.
He cites a case shared by Gergely Orosz: a company in a niche industry previously paid a percentage of its revenue for the license of a closed-source core software. With the help of AI, their engineers recreated the same functionality from scratch in just a few months, allowing them to move off the expensive licensing agreement.
Related event: AI Disrupts Traditional SaaS Pricing and Cost Structures(2 posts)→
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