Chaos is a Ladder, not a Pit

The markets are currently overreacting to every little update from major AI labs.

Neither is the SaaS story over, nor are IT companies being destroyed already. Furthermore, the success of agentic coding in controlled environments does not mean software engineers are no longer needed.

Recent developments have primarily created chaos. Enterprises are unsure how to navigate this shift. They need help and guidance through this, the companies best positioned to advise them are those that have already invested in understanding their specific niches, architectures, and current challenges, not because they have all the answers, but because they know which questions actually matter. Extending that expertise to help them integrate emerging AI technology is the most sensible path forward.

While the shift is massive and sudden, the software component of SaaS may look fundamentally different in a few years. But the underlying business problems it solves will remain. Services provided by IT firms will adapt to new opportunities around that.

Between the two, product companies face a higher risk of disruption. New business software must be remarkably better than the current stack to gain traction and hope that Open AI or Anthropic don't make them redundant. A new product will find it harder to acquire its first customers, even as existing customers find merit in staying with their current SaaS providers.

The bar is somewhat higher now, but we have better tools to climb as well.

It is not all gloom and doom.