// saas strategy

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How SaaS Customers Are Building Competitive Alternatives

When enterprise customers engineer internal solutions to replace core SaaS functionality—as Spotify did with HR Bot—vendors face a structural threat that traditional competition doesn't pose. These customers have data, technical talent, and deep domain knowledge that create genuine make-versus-buy advantages, particularly in HR tech and CRM where workflows are well-understood and customization costs are justified by scale. SaaS companies must now compete on integration depth and ecosystem benefits rather than feature parity alone.

How AI agents are breaking the SaaS seat-based pricing model

The per-seat pricing model that anchored SaaS economics for two decades is becoming incoherent as AI agents replace human workers. Renewal negotiations now force vendors and customers to reckon with radically different unit economics. Enterprises deploying agents face a choice: negotiate new pricing that reflects actual work output rather than headcount, or accept vendors using seat-based fees as a revenue hedge against automation reducing their customer base. This creates immediate leverage for procurement teams but threatens the predictable, linear revenue growth that public SaaS companies have trained investors to expect.