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Jerry Liu says SaaS margins will shrink as value moves to the data layer

1 article1 sourcesince Nov 3Last article 53m ago ·

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LlamaIndex founder Jerry Liu says SaaS margins will still compress even though vibe-coded tools will not replace enterprise-grade SaaS. In a post on X, he argues that the value of these tools will shift from the app and UI layer to the data layer.

He also says coding agents let startups build agent-native competitors to incumbents much faster.

Written by AI from the articles below · updated Nov 3, 8:29 PM ET

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Latest developmentNov 3, 8:20 PM ET
Jerry Liu says SaaS margins will compress as value shifts to data

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The articles in this story. Times are ET.

Nov 3
  1. Jerry LiuX
    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.

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