IT perspective here. Simon hits the nail on the head as to what I'm genuinely looking forward to:
> How do you clone the important parts of Okta, Jira, Slack and more? With coding agents!
This is what's going to gut-punch most SaaS companies repeatedly over the next decade, even if this whole build-out ultimately collapses in on itself (which I expect it to). The era of bespoke consultants for SaaS product suites to handle configuration and integrations, while not gone, are certainly under threat by LLMs that can ingest user requirements and produce functional code to do a similar thing at a fraction of the price.
What a lot of folks miss is that in enterprise-land, we only need the integration once. Once we have an integration, it basically exists with minimal if any changes until one side of the integration dies. Code fails a security audit? We can either spool up the agents again briefly to fix it, or just isolate it in a security domain like the glut of WinXP and Win7 boxen rotting out there on assembly lines and factory floors.
This is why SaaS stocks have been hammered this week. It's not that investors genuinely expect huge players to go bankrupt due to AI so much as they know the era of infinite growth is over. It's also why big AI companies are rushing IPOs even as data center builds stall: we're officially in a world where a locally-run model - not even an Agent, just a model in LM Studio on the Corporate Laptop - can produce sufficient code for a growing number of product integrations without any engineer having to look through yet another set of API documentation. As agentic orchestration trickles down to homelabs and private servers on smaller, leaner, and more efficient hardware, that capability is only going to increase, threatening profits of subscription models and large AI companies. Again, why bother ponying up for a recurring subscription after the work is completed?
For full-fledged software, there's genuine benefit to be had with human intervention and creativity; for the multitude of integrations and pipelines that were previously farmed out to pricey consultants, LLMs will more than suffice for all but the biggest or most complex situations.
>> How do you clone the important parts of Okta, Jira, Slack and more? With coding agents!
> This is what's going to gut-punch most SaaS companies repeatedly over the next decade
but there's already clones of the important parts of those systems and yet the SaaS world survives. The code used isn't the secret sauce and people in SaaS know writing the code is 10% of the effort in keeping those businesses on their feet.
I don't think the SaaS industry is on the ropes until coding agents can do things like create a recommendation algorithm better than Spotify and YouTube. In those cases the code/algorithm is indeed the secret sauce and if a coding agent can do better than those companies will be left behind.
“API Glue” is what I’ve called it since forever
Stuff comes in from an API goes out to a different API.
With a semi-decent agent I can build what took me a week or two in hours just because it can iterate the solution faster than any human can type.
A new field in the API could’ve been a two day ordeal of patching it through umpteen layers of enterprise frameworks. Now I can just tell Claude to add it, it’ll do it up to the database in minutes - and update the tests at the same time.
And because these are all APIs, we can brute-force it with read-only operations with minimal review times. If the read works, the write almost always will, and then it's just a matter of reading and documenting the integration before testing it in dev or staging.
So much of enterprise IT nowadays is spent hammering or needling vendors for basic API documentation so we can write a one-off that hooks DB1 into ServiceNow that's also pulling from NewRelic just to do ITAM. Consultants would salivate over such a basic integration because it'd be their yearly salary over a three month project.
Now we can do this ourselves with an LLM in a single sprint.
That's a Pandora's Box moment right there.
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