"SaaS Dead, AI Rise" They Say

Why die, why did it die?  
The whispers echo, the markets sigh.  
Old told, I was told it was old,  
A story of systems grown too cold.  

SaaS, they say, was once the king,  
Of seamless tools and apps that sing.  
But now it fades, commoditized,  
Its crown claimed by AI's rise.  

No more silos, no more walls,  
Intelligent agents heed our calls.  
Future of SaaS, a shifting tide,  
Where logic learns and data glides.  

Why die, why did it go?  
Progress, relentless, demands the show.  
From static code to learning streams,  
AI crafts the new extremes.  

Old told, I was told it was old,  
Yet its foundations still hold gold.  
For in its death, a phoenix gleams,  
SaaS reborn in AI dreams.

An anonymous folk song named "SaaS Dead"

SaaS Is Not Dead: It’s Transforming into Something Smarter

The rapid advancements in artificial intelligence (AI) over the last few years have reshaped industries, spurred innovation, and created a surge of excitement. With major investments from tech giants like Apple and Facebook into AI research institutions like OpenAI or companies like Klarna, the question on everyone’s mind has shifted from “What can AI do?” to “How can we integrate AI into our workflows?”

But along with this excitement, bold claims have surfaced, such as “SaaS is dead.” Is this really true? Microsoft’s CEO Satya Nadella recently shared his thoughts on how AI will impact SaaS solutions, and his vision points not to the end of SaaS but to its transformation into something smarter, more integrated, and more autonomous.

The Evolution of SaaS in the Age of AI

SaaS, or Software as a Service, is a software delivery model where applications are hosted on the cloud and accessed by users over the internet. Instead of purchasing and installing software on individual devices, users can access SaaS applications through a subscription. This subscription typically includes access to the software, updates, and support services. SaaS is cost-effective, scalable, and eliminates the need for complex installations, making it a popular choice for businesses and individuals alike. Examples of SaaS include tools like Google Workspace, Slack, and Cubicl.

In a recent interview, Nadella suggested that traditional SaaS models — which he described as essentially CRUD (Create, Read, Update, Delete) databases with hardcoded business logic—are on the brink of a major shift. AI agents, he believes, will take over the business logic layer, dynamically managing rules across multiple applications and databases. This would make rigid back-end systems obsolete, as AI becomes the unifying logic layer, seamlessly connecting workflows and data repositories.

To illustrate this, Nadella pointed to Python integration in Excel. In this example, Excel doesn’t just process data; it uses AI to plan, analyze, and execute—turning it into a collaborative tool for decision-making. AI-driven copilots and agents could evolve further to handle multi-app workflows, making applications like Excel, Word, or CRM tools not just static software but dynamic, intelligent assistants.

AI as SaaS’s Best Bridesmaid

AI and SaaS share a symbiotic relationship. While some speculate that the rise of AI agents might render SaaS obsolete, a more nuanced perspective suggests that AI will become the ultimate "bridesmaid" for SaaS, enhancing its capabilities and enabling it to thrive in a new era.

Nadella's analogy compares SaaS to CRUD (create, read, update, delete) databases with embedded business logic. Traditionally, SaaS applications rely on hardcoded rules to manage workflows. However, Nadella envisions AI agents taking over this logic layer, managing rules across multiple applications and databases. This shift, he believes, will transform traditional SaaS applications by enabling seamless multi-repository operations and intelligent decision-making.

Two Transformative Roles for AI in SaaS

Nadella highlighted two key aspects of this transformation:

1. AI Embedded Within SaaS Applications

Nadella’s primary focus is on AI agents transforming SaaS by embedding intelligence directly into applications. Instead of traditional apps with fixed business rules, AI-native solutions will dynamically adapt to user needs. For example, an AI agent embedded in a task management tool could automatically analyze project timelines, predict delays, and suggest actionable solutions—all without requiring manual intervention.

2. AI Transforming SaaS Development (Implied but Secondary)

AI is also revolutionizing the way SaaS applications are built. With tools like GitHub Copilot and Python in Excel, developers can use AI to:

• Automate coding and business logic creation.

• Simplify workflows and integrations.

• Build intelligent applications faster and with greater flexibility.

How Monkedo Aligns with This Vision

Monkedo is a cloud-based, no-code automation platform that enables users to integrate over 400 apps such as Linkedin, Hubspot, Stripe etc., create workflows, and automate repetitive tasks without writing code. With its subscription-based model, it simplifies data transfer and process management, helping businesses save time and reduce costs.

At Monkedo, we see ourselves at the forefront of this transformation, serving both roles outlined by Nadella:

1. Helping SaaS Users Bridge the AI Gap

Not all SaaS providers can pivot quickly to AI-native solutions. For users who want to integrate AI capabilities into their workflows today, Monkedo offers a powerful solution. With Monkedo, users can:

• Integrate their SaaS applications with cutting-edge AI tools like ChatGPT, Google Gemini, and more.

• Create custom workflows that leverage AI to automate repetitive tasks, analyze data, and generate insights.

This means users don’t have to wait for SaaS providers to build native AI features. They can use Monkedo to seamlessly connect their favorite tools with AI and start experiencing the benefits immediately.

2. Enabling SaaS Providers to Expand Integration Capacity

Software development can be costly, require robust infrastructure, and take significant time. Monkedo simplifies this process with its Software Development Kits (SDKs), providing developers with an infrastructure that accelerates development timelines. SaaS companies and developers can use Monkedo as an integration provider to enhance their platforms’ capabilities. By using Monkedo, SaaS providers can:

• Quickly integrate AI tools like Intercom and ElevenLabs into their platforms.

• Provide their users with new AI-driven features, such as intelligent automation, dynamic rule management, and advanced data processing.

• Scale integrations effortlessly without rebuilding their systems from scratch.

For example, a CRM provider could use Monkedo to integrate AI-driven chatbots, enabling their customers to handle sales inquiries automatically. This not only enhances the CRM’s value but also positions it as an AI-native solution, meeting growing market demands.

What B2B SaaS Market Startups Should Do

B2B SaaS startups need to focus on adaptability and foresight in this rapidly evolving landscape. Integrating AI into their solutions is no longer optional—it is a necessity to stay competitive. Startups should leverage platforms like Monkedo to integrate cutting-edge AI tools and expand their software’s capabilities without incurring prohibitive costs or delays. By adopting Monkedo’s SDKs, they can streamline development and focus on delivering innovative features that meet market demands.

Additionally, SaaS industry must think beyond isolated applications. Building interconnected, AI-driven ecosystems where applications seamlessly communicate will become a key differentiator. Monkedo’s infrastructure provides a scalable foundation for this, allowing startups to position themselves as forward-thinking players in the B2B SaaS business.

SaaS Is Evolving, Not Dying

The rise of AI doesn’t mean SaaS is dead. Instead, it heralds a new era of smarter, more adaptive solutions. With AI agents as the organizing layer, SaaS applications will become more integrated, intelligent, and autonomous—a transformation that aligns perfectly with Monkedo’s mission.

Whether you’re a SaaS user looking to integrate AI into your workflows or a SaaS provider aiming to expand your software’s capabilities, Monkedo is here to help you navigate this exciting new frontier. SaaS isn’t dead; it’s transforming—and with Monkedo, you can be part of the revolution.