Is SaaS Becoming “Service as a Software”?
The SaaS landscape is poised to shift from purely product-driven to outcome-focused services.
🌥️ SaaS evolution
Software delivery has evolved through different waves. First, on-premises software was purchased outright, with low alignment between customer and vendor interests. In the early 2000s, a second wave of cloud-native SaaS brought in subscription-based models, shifting maintenance to vendors and easing deployments. Yet, many SaaS contracts still lock customers into paying for unused features.
The third wave will see SaaS enhanced by AI agents. As "copilot" and "autopilot" capabilities help complete tasks previously handled by people, SMEs will have more bandwidth to focus on the actual quality of services delivered to their internal users and customers, using SaaS platforms as a vehicle for business outcomes rather than process execution. In parallel, business users may have greater flexibility to switch providers as AI enables lower data migration and integration costs. McKinsey estimates that churn may increase by 1 to 3 percentage points as buyers explore new vendors, or even self-built solutions.
☝🏻 Human edge
AI agents are transforming industries: they accelerate lead validation in sales, or data crunching for risk assessment in finance. Yet, when complex decisions are required, human insight fills the gaps. For instance, fraud detection relies on AI to flag suspicious activities, but human analysts are needed to refine algorithms and adapt to new fraud tactics.
This human-machine synergy enhances outcomes. As AI tools take on repetitive tasks, human intelligence adds strategic value, helping companies move beyond “getting it done” to excelling at each step of service delivery. A 2020 survey from Deloitte showed that 60% of companies planned to use AI to assist workers, rather than to replace them (12%).
💰 New monetization
With AI adoption, outcome-based pricing models will become more prevalent, focusing on measurable results that align with customer goals. Salesforce's decision to charge $2 per conversation, instead of by user or seat, for Agentforce signals an interesting pivot (despite being more usage- than outcome-based).
This will require changes in delivery and billing models. Metrics will be needed to transparently link outcomes to specific SaaS functionalities, a challenge when external factors contribute to results. Vendors may also need to absorb financial risks if outcomes aren’t achieved.
In short: this evolution will impact how early- and mid-stage companies approach building their solutions. While it may push back their break-even points, it positions them for long-term growth by delivering value-as-a-service at the right margins and scale. They will need the backing of growth-focused investors who bring an operator mindset and understand that the path to success will be less linear and require profitable scaling with a high level of adaptability.