The rise of agentic coding is creating a "SaaSpocalypse." These agents can migrate data, learn different workflows, and handle integrations, which undermines the core moats of SaaS companies: data switching costs, workflow lock-in, and integration complexity. This makes the high gross margins of SaaS businesses a prime target for disruption.

Ubiquitous local AI agents that can script any service and reverse-engineer APIs fundamentally threaten the SaaS recurring revenue model. If software lock-in becomes impossible, business models may shift back to selling expensive, open hardware as a one-time asset, a return to the "shrink wrap" era.

The value in software is shifting from SaaS platforms (like CRMs) to the AI agent layer that automates work on top of them. This will turn established SaaS companies into simple data repositories, or "hooks," diminishing their stickiness and pricing power as agents can easily migrate data.

While users building their own tools is a risk, the more profound disruption comes from AI agents performing knowledge work autonomously. This could eliminate the need for human-centric software like project management tools entirely, as agents handle tasks, tracking, and completion without manual input.

The primary moat for many SaaS companies was the complexity and high cost of migrating away from their product. AI agents can now automate this process, eroding that advantage, increasing competition, and giving buyers significant leverage to renegotiate contracts.

AI coding agents will make migrating between complex enterprise systems like SAP and Oracle dramatically easier and cheaper. This erodes the moat of high switching costs, forcing incumbents to compete on product value rather than customer lock-in, where they once held customers as "hostages."

The lucrative maintenance and migration revenue streams for enterprise SaaS, which constitute up to 90% of software dollars, are under threat. AI agents and new systems are poised to aggressively shrink this market, severely impacting public SaaS companies' incremental revenue.

SaaS products like Salesforce won't be easily ripped out. The real danger is that new AI agents will operate across all SaaS tools, becoming the primary user interface and capturing the next wave of value. This relegates existing SaaS platforms to a lower, less valuable infrastructure layer.

If AI agents are delegated to choose the optimal software for a task, they will constantly evaluate and switch between vendors based on performance and cost. This dynamic breaks the long-term customer relationships and enterprise lock-in that SaaS companies rely on, effectively commoditizing the software market and destroying brand loyalty.