Is Enterprise SaaS on the Brink of Extinction by 2027?
July 21, 2025
Enterprise SaaS software will be dead by 2027. While that might sound extreme, his reasoning, centered on the evolving build-or-buy dilemma fueled by AI, offers a compelling glimpse into a potential future for business software.
For years, the decision for companies has been clear: either adapt your internal processes to fit an off-the-shelf software solution (buy), or invest in custom development to perfectly match your unique workflows (build). The “buy” option, dominated by giants like Salesforce and SAP, has often been touted as the efficient choice for non-core competencies. However, Harrison argues that this approach frequently leads to the worst of both worlds.
The Hidden Costs of “Off-the-Shelf” Customization
Many organizations initially commit to adapting their processes to a major SaaS platform. But as soon as implementation begins, the “squeaky wheels” emerge. “That won’t work for how we do things,” becomes a common refrain, leading to a cascade of small tweaks, custom integrations, and specialized development on top of the existing platform. Before you know it, you’ve essentially built your entire business process on someone else’s infrastructure.
This creates a perilous trap:
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Vendor Lock-in: You’re beholden to the SaaS provider’s ecosystem, updates, and pricing.
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Upgrade Nightmares: Major platform upgrades can destabilize your custom add-ons, requiring costly and time-consuming re-development and expert intervention.
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Compromised Efficiency: The initial promise of streamlined processes often gets bogged down by workarounds and a fragmented system.
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Massive Contracts & Commitments: Long-term agreements with these large providers can be inflexible and financially burdensome.
The AI Revolution: A Renaissance for Custom Software?
Harrison believes AI is the game-changer that will disrupt this model. He envisions a future where companies bring more of their software development in-house, leveraging AI to create highly customized, line-of-business applications.
Instead of spending a year implementing a generic SAP or Salesforce solution, businesses could turn to smaller, boutique consulting firms or even their own internal teams. These agile groups, empowered by AI-driven development tools, could build bespoke applications that perfectly meet a company’s exact needs, potentially at a comparable or even lower cost than a major SaaS implementation.
Imagine:
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Precise Alignment: Software that flawlessly integrates with your existing unique workflows, rather than forcing you to adapt.
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Ownership and Control: You own the software, giving you complete control over its evolution, maintenance, and data.
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Cost-Effectiveness: The potential for significant savings in implementation time, customization costs, and ongoing licensing fees.
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Competitive Advantage: Developing proprietary software tailored to your specific operations can become a significant differentiator.
This shift could lead to the dethroning of some industry giants and the rise of specialized firms building highly targeted solutions. As businesses strive to optimize their bottom lines and streamline operations, the pendulum may swing back towards building in-house solutions, especially for core business processes that offer a competitive advantage. The old adage, “if it’s not your competitive advantage, buy it,” might soon be challenged.
What do you think? Will AI usher in a new era of custom software development, leaving traditional enterprise SaaS in its wake by 2027? Shoot me a dm on LinkedIn and lets chat about it!