Can SaaS companies cope with the SaaSpocalypse by pivoting to a service model?

While possible in theory, it will be impossible for most. In the product-market-channel-model-fit paradygm:

•⁠ ⁠They need a new business model, obviously.
•⁠ ⁠They need a new product (SaaS was developed for humans, not for AI agents, and legacy architecture will make the product subpar).
•⁠ ⁠⁠They will likely need new distribution channels, such as being auto-discovered and implemented by AI-agents.

It's easier for new startups to offer those solutions than for existing SaaS companies to adapt. Incumbents may have a distribution advantage, but so did Kodak.

If I had a SaaS company, I would be more inclined to turn it into a cash cow and do something new from scratch under a new entity with a clean cap table.

Subscribe to my weekly newsletter of hot takes: