I'm the Customer SaaS Companies Need to Worry About
Submitted by bill on Sat, 2026-02-14 12:27I'm the Customer SaaS Companies Need to Worry About
By Bill Pollock, Founder & CEO, No Starch Press
I run a 20-person publishing company. Over the last several months, I've been using AI to replace software I used to pay thousands of dollars a month for, and I'm just getting started. I'm not a developer. I'm not an AI startup founder. I'm a customer. And if I can do this, SaaS companies have a problem.
There's a post making the rounds right now. Matt Shumer's "Something Big Is Happening" has been viewed over 50 million times. He's right that something big is happening. I don't know Matt, but his post got me thinking about a lot of this. I think there's more to the story, though. He tells us AI built him an app and it came back perfect. But what did it replace? What did it cost? What did he decide not to build? How do you think about what's actually at risk and what isn't? I want to fill in those gaps, not from the perspective of an AI startup founder, but from someone running a 32-year-old book publishing company who's been doing this work in the real world.
There's a panic sweeping through the software industry. The headlines are calling it the "SaaSpocalypse." A trillion dollars in market value has been wiped out. Monday.com dropped 21%. ServiceNow is down 28% year-to-date. HubSpot, Figma, Atlassian, all cratering. Investors are dumping software stocks like the whole sector is headed for extinction.
We make books about programming, hacking, hardware, math, and LEGO. And what I've learned from building our own tools is that the panic is both justified and wildly misdirected. The investors dumping everything aren't wrong. They're just not thinking carefully enough about where the real threat actually lands.
The Wrappers Are in Trouble
Here's what I mean. My company pays over a thousand dollars a month for specialized financial reporting software. It handles things like generating custom reports, audit tracking, and recording specifics about our products, contributors, and sales related to individual titles. It serves a narrow function, it's clunky, and we can't customize it to work the way we actually need it to. We can't even add things we need, like converters that take reports from different vendors and transform them into formats we can use. So I've been working with AI to build a custom alternative. Not a toy, but a working system with the specific functionality our business actually requires, tailored to our workflows. We're still validating it, but the trajectory is clear.
One of my staff members built a social media calendar tool that integrates with our project management platform. She estimated it would save us 20 hours a week. Meanwhile, we're paying hundreds of dollars a month for Sprout Social and a similar amount for MailChimp, and getting a fraction of that value. They're on the chopping block.
This is the pattern that should terrify a very specific category of software company: the ones I call "wrappers." These are products that are essentially a nice user interface sitting on top of APIs, standard functionality, or basic database operations. Sprout Social is fundamentally a UI around the Facebook and Instagram APIs with some scheduling logic. MailChimp is a UI around email delivery infrastructure with a contact database and some analytics. Many middleware products that handle data conversion between systems are just doing field mapping on a schedule.
These companies have been protected by one moat: it used to be too hard and too expensive for customers to build their own. That moat is gone. A business owner who understands their own workflows can now prototype a replacement in days, get it to 80% of what they need almost immediately, and hire an engineer to harden and finish it for a fraction of the annual licensing cost.
Seeing Software for What It Really Is
When I look at the products my company pays for, I now ask a simple question: what's actually going on behind the scenes?
Take MailChimp. The parts that are genuinely hard to replicate are the deliverability infrastructure — managing IP reputation across thousands of customers, negotiating with ISPs and major email providers to stay off blocklists, handling complex bounce categorization to protect sender reputation. That's real, specialized work.
But the parts we interact with daily? The contact database with segmentation is just a database with tags and filters. The template builder is drag-and-drop HTML. The analytics are tracking pixels and redirect URLs. The A/B testing is basic statistical comparison. None of that justifies what they charge.
The smart move isn't to rebuild everything from scratch. It's to unbundle. Use a commodity sending service like Amazon SES for the hard deliverability piece, and build your own front end for the parts you actually interact with. You get the genuinely difficult infrastructure handled by specialists at commodity prices, and you get an interface that does exactly what you need.
This unbundling is going to reshape how software companies price and package their products. Instead of charging for the whole vertical stack, they'll need to let customers pick and choose. Maybe you just want the sending infrastructure. Maybe you just want the API. Maybe you want an audit service that validates what you've built yourself. The companies that modularize will survive. The ones that try to keep the bundle together are going to get picked apart.
But I'm Not Building My Own Cloudflare
Here's where the market is getting it wrong. Investors are dumping everything indiscriminately, and that misses a crucial distinction.
I'm never going to build a Cloudflare. I can barely use all the features that are already built into that ecosystem. I'm totally dependent on it and I'm happy to pay them. I'm not going to build my own Google Workspace. I'm not going to build my own data center. I can spin up a server with AI's help, but I don't want to build reliable storage like Backblaze or Wasabi. Let them have that business. I don't want to lose sleep at night because something is broken in the infrastructure. I don't want to build things that have to be constantly maintained and watched, where you have to manage vendor relationships and have phone calls with people and make sure everyone's happy so things aren't constantly breaking.
I'm not going to make my own web browser. I've published books that explain intimately how browsers work, and I'm not going near building one. I'm not going to write my own cryptographic algorithms. I'm not going to make my own password manager. I'm not going to build another QuickBooks.
These are products with genuine depth. Real engineering. Real infrastructure. Real ecosystems that would take years and enormous resources to replicate. They're not wrappers, they're foundations.
But if all you want to do is sell me an expensive integration? Your business is at risk.
My company uses Monday.com. It's not cheap. Could I theoretically build a replacement? Maybe. But why would I? My staff uses it daily. They understand it. It's not just a calendar. It's got automations, integrated boards, access controls, security handled, and a whole ecosystem. The switching cost isn't just technical, it's human. I'd be retraining people and rebuilding institutional knowledge to save subscription fees on something that already works.
I chose Monday.com over specialized publishing project management software because that stuff was terrible: restrictive, expensive, and nobody wanted to use it. That choice itself illustrates the pattern. I picked the general, well-designed, deeply embedded platform over the narrow vertical tool. The narrow tool is the one that's vulnerable.
The Same Test Applies to Everything
Are niche consulting firms at risk? The ones that essentially sell access to knowledge that AI can now provide? Probably. The ones that sell relationships, judgment, and implementation? Probably not.
The test is always the same: are you selling genuine depth, real infrastructure, or hard-won expertise? Or are you selling convenience that can now be had for free?
The Evaluation Framework
Something big is absolutely happening. But it's not the end of software, or books, or any other product category. It's the end of a specific business model: charging premium prices for what amounts to a wrapper around commodity functionality, protected by the moat of "it's too hard to build your own."
Here's how I evaluate any product now:
Genuinely at risk: Narrow vertical tools that do one thing for one industry. Middleware that translates data between systems. Products where the entire value proposition is "we made it so you don't have to understand the APIs." Social media management tools. Basic email marketing platforms. Educational products that just deliver drills AI can now generate. Any product where the answer to "what's actually behind the scenes?" is "not much."
Needs to adapt, but has staying power: Broad platforms with deep ecosystem integration and high switching costs. Products where the value isn't just features but organizational infrastructure. Any product where your team has built workflows, institutional knowledge, and daily habits around it. But these will face pricing pressure as customers peel off features they can build themselves.
Not going anywhere: Core infrastructure providers. Cloud hosting. CDNs. Storage services. Security infrastructure. Cryptographic implementations. Products where the engineering depth, global infrastructure, and vendor relationships would be insane to replicate. Anything where even someone who understands exactly how it works would never want to build it themselves.
The investors panicking right now are making the same mistake as people who hear "AI will change everything" and either ignore it completely or assume it means everything they know is obsolete. The truth is more specific, more interesting, and more actionable than that. Some companies should be terrified. Others just need to rethink their pricing. And a few are going to be more valuable than ever.
I know this because I'm not speculating. I'm doing it, right now, at a small publishing company in San Francisco. And if I can do it, so can a lot of other business owners who are tired of paying for products that don't actually work the way they need them to.
®
This Author Spotlight is on Python programmer/educator extraordinaire Eric Matthes, author of the international bestseller (now in its third edition)
Eric Matthes has been writing computer programs since childhood. For over a decade, he was a high school science and math teacher, as well as a Python programming educator. He now lives in Alaska as a full-time author and informal Python evangelist, making appearances on podcasts and at events like PyCon, where he hopes to meet you in person.

New year, new spotlight—and this one shines on civil engineer and YouTube star Grady Hillhouse. His first book,
Grady Hillhouse







