"It doesn’t matter whether a company can actually rebuild Salesforce in-house. What matters is whether the procurement manager believes they can. That belief alone compresses pricing. That’s a genuine insight about how perception of AI capability damages margins before the technology actually delivers."
People can think they can actually rebuild a sophisticated SaaS application or platform in-house all they want. What they choose to ignore is that the software they see and replicate is just the top layer. There are so many moving parts nobody sees and, it seems, nobody understands how critical those parts are.
If anyone should be worried about compressed or evaporating margins, it's those companies that turned loose their internal vibe-coders to try to replicate what we've spent more than 20 years architecting.
To think that procurement managers would have the final word on this based on their limited perspective speaks volumes about company leadership.
You know what? After these companies take a financial hit from janky not-there-yet vibe-coded software, we SaaS providers can charge them a premium for solid, secure software.
My concern is that no matter if you are 100% correct or if the article in question is 100% correct, the big issue is that it will be an engine that explodes income inequality. The people that control the A.I. control the new economy. More for them and less for everyone else.
"It doesn’t matter whether a company can actually rebuild Salesforce in-house. What matters is whether the procurement manager believes they can. That belief alone compresses pricing. That’s a genuine insight about how perception of AI capability damages margins before the technology actually delivers."
People can think they can actually rebuild a sophisticated SaaS application or platform in-house all they want. What they choose to ignore is that the software they see and replicate is just the top layer. There are so many moving parts nobody sees and, it seems, nobody understands how critical those parts are.
If anyone should be worried about compressed or evaporating margins, it's those companies that turned loose their internal vibe-coders to try to replicate what we've spent more than 20 years architecting.
To think that procurement managers would have the final word on this based on their limited perspective speaks volumes about company leadership.
You know what? After these companies take a financial hit from janky not-there-yet vibe-coded software, we SaaS providers can charge them a premium for solid, secure software.
My concern is that no matter if you are 100% correct or if the article in question is 100% correct, the big issue is that it will be an engine that explodes income inequality. The people that control the A.I. control the new economy. More for them and less for everyone else.