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AI coding tools upend the 'buy versus build' software equation and threaten the SaaS business model
- AI coding tools like Bolt are disrupting the enterprise software landscape.
- These tools challenge the traditional SaaS models by lowering the barrier to building custom software.
- Companies using AI tools may gain control, reduce costs, and innovate faster by building in-house.
- AI coding services like Bolt, Replit, and Cursor are blurring the decision between buying external software or building it internally.
- AI-native developers can now create apps through English language prompts, changing the software development landscape.
- The shift towards AI-assisted development allows for the creation of internal tools, reducing the dependence on traditional SaaS.
- Major areas affected by this shift include HR, Training, Q&A, Revenue Operations, CPQ, Business Dashboards, and Marketing tools.
- Netlify and other companies have utilized AI coding tools to build internal tools such as employee survey tools and pricing calculators.
- The rise of AI in software development poses challenges in terms of maintenance and reliability, requiring robust infrastructure.
- The traditional SaaS industry faces significant strategic implications as companies can potentially build tailored internal tools at lower costs.
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