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

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

- Source: Jerry Liu
- Published: 2026-11-04T01:20:31.000Z
- Bad Influence: https://badinfluence.news/items/jhgo6cr89wl9zhbemh6xvtmqq
- Original: https://x.com/jerryjliu0/status/2117789053680849043

## Summary

Jerry 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.

## Post

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

## Quoted post @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.

https://x.com/scottbelsky/status/2117694229770371254