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SaaSacre – Generational buying opportunity or Great Value Destroyer?

Wednesday 29th of April 2026

By James Cameron

Since the start of the year, the US software complex has de-rated sharply. The S&P North American technology software proxy (IGV) was down roughly 25% at the February lows before rebounding, but the broader message has been clear: selling has been broad-based across Software as a Service. Software as a Service (Saas) is the licensing of software over the internet instead of installing and maintaining it on your own servers.

The market has been spooked by what AI implies for software business models.

The core fear is that SaaS pricing, particularly per-seat and per-licence models, becomes less defensible if AI materially lifts productivity and customers need fewer users to achieve the same output. At the same time, AI is reducing the cost and complexity of building software. As development becomes easier and less resource-intensive, the historical IP moat that protected many incumbents looks less durable, putting long-term pricing power under pressure.

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