AI Agents Disrupting SaaS Market

AI agents are fundamentally changing the software economics. Companies are now questioning if they should build internal tools instead of renewing expensive SaaS contracts. What changed? AI agents can create custom solutions in minutes, replacing specialized software. This shift is especially hitting back-office tools that perform simple database operations or dashboards.

The real threat: When vendors send annual price increases, teams now ask "should we build this ourselves instead?" A year ago, this question had an obvious "no" answer. Today, it's a real option organizations are seriously considering.

What this means for you: If you use SaaS tools daily, expect vendors to fight harder for renewals with better pricing. If you're tech-savvy, you now have power to negotiate or replace entire categories of software. Organizations with strong engineering teams have a major competitive advantage.

SaaS isn't dead, but the competitive bar just got higher. Tools with proprietary data, high reliability requirements (like Stripe for payments), and strong compliance features will survive. Everything else? Vulnerable.

Avnet and AMD showcased scalable AI solutions at their national roadshow, highlighting infrastructure becoming essential for organizations building custom AI tools.