while it makes sense that companies are unlikely to want to maintain a bunch of auxiliary saas tools just because Claude Code exists, it might be the case that Claude Code massively reduces the barrier to entry for software companies, and in theory the maintenance costs as well. So while companies will still outsource a lot, their options for outsourcing could go up a tonne, so even though companies are still spending money on external options, those options see margin pressure that dilute SaaS from 70% margin in the era where building great software was hard, to ~0%, if building great software suddenly becomes trivial.
while it makes sense that companies are unlikely to want to maintain a bunch of auxiliary saas tools just because Claude Code exists, it might be the case that Claude Code massively reduces the barrier to entry for software companies, and in theory the maintenance costs as well. So while companies will still outsource a lot, their options for outsourcing could go up a tonne, so even though companies are still spending money on external options, those options see margin pressure that dilute SaaS from 70% margin in the era where building great software was hard, to ~0%, if building great software suddenly becomes trivial.