Jerry Liu says SaaS margins will compress as value shifts to data

AIJerry Liu agrees vibe-coded solutions won't replace enterprise-grade SaaS, but argues SaaS margins will still shrink. He says the value of these tools will move to the data layer rather than the app/UI layer, and that coding agents let startups build agent-native competitors to incumbents much faster.

Jerry Liu

@jerryjliu0

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i agree that vibe-coded solutions will not replace enterprise-grade saas solutions.

however i do think saas margins will be compressed for a variety of reasons:
* the value of these tools will be in the data layer, and not in the app/UI layer
* it is much easier and faster for startups to launch competing products. coding agents give small companies insane leverage to compete against incumbents, especially as startups are built in an agent-native fashion from the ground up

scott belsky@scottbelsky

narrative violation: preferences will swing back from DIY vibe-coded software to super secure industry-leading SaaS solutions. while it's super easy to build anything, endlessly protecting and securing it is super hard...and teams want to sleep at night.

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Jerry Liu · x.comPublished Nov 3, 8:20 PM ET · added here 8:27 PM ET

Original title: i agree that vibe-coded solutions will not replace enterprise-grade saas solutions.

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