Coding agents will erase switching costs, triggering a 'saaapocalypse'
illscience · x · 2026-10-14
The author agrees most classic moats survive large models, but argues switching costs are the exception: migration and integration complexity that deters humans is trivial for coding agents, so enterprise switching costs are heading to zero.
Consumer financial services—the biggest switching-cost-protected profit pool, often mispriced against consumers—explain why JPMorgan blocks personal agents, a stance he sees as unsustainable. Collapsing switching costs will trigger a "saaapocalypse," letting everything from ERP and payroll to consumer deposits migrate fluidly.
Related event: Coding agents may zero out switching costs, resetting SaaS moats(2 posts)→
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