Belmonte Ventures

Introduction

Imagine a company with over 200 employees deciding to ditch every single SaaS product they use—replacing them with internally built alternatives created by employees who discovered a technique called "vibecoding." This isn't a hypothetical scenario; it happened in a recent exploratory call I had with a non-tech agency. The CEO was so excited about the savings—$150,000 per year—that he launched a "SaaS ditching program." This story forces us to reevaluate the very value proposition of SaaS in an era where anyone can code.

What is Vibecoding?

Vibecoding is a term that describes using AI-powered tools and low-code/no-code platforms to rapidly prototype and build functional software. It's not about writing complex code from scratch; it's about leveraging tools like ChatGPT, Copilot, or Bubble to generate working applications based on natural language prompts. The barrier to entry for creating software has never been lower.

The Agency's Approach

Discovery: Employees found vibecoding and built alternatives to the SaaS tools they were using daily.
CEO Buy-In: The CEO was impressed and mandated a systematic replacement of all SaaS products.
Results: They are saving $150k annually and plan to ditch every SaaS except essentials like operating systems.

The Implications for SaaS Companies

This case study raises uncomfortable questions for the SaaS industry:

What is the moat? If a non-technical employee can vibecode a viable alternative to your product, what prevents your customers from doing the same?
Value vs. Convenience: SaaS has always sold on convenience—no need to build, maintain, or host. But with AI lowering development costs, the convenience gap is shrinking.
Customization: In-house solutions can be tailored exactly to the company's needs, often better than generic SaaS.

Industries Most at Risk

Agencies and service businesses that have unique workflows.
Small to mid-size companies with limited budgets but smart employees.
Any industry where the SaaS product is not deeply integrated into a larger ecosystem.

The Counterargument: Why SaaS Still Matters

Despite this trend, SaaS isn't dead. Here's why:

Maintenance: Vibecoded apps require upkeep, security patches, and scaling—tasks that are not trivial.
Support: SaaS vendors provide customer support, updates, and compliance.
Ecosystem: Many SaaS products integrate with each other, creating network effects that are hard to replicate.
Focus: Building internal tools distracts from core business activities.

However, for simple, single-purpose tools, the vibecoding threat is real.

What This Means for You

If you're a SaaS founder, take note: your value proposition must evolve. Focus on stickiness, data network effects, and deep integrations. If you're a business leader, consider which of your SaaS tools are truly irreplaceable and which could be vibecoded for savings.

Conclusion

The story of the agency ditching $150k in SaaS is a wake-up call. Vibecoding is democratizing software creation, and businesses are taking notice. The future of SaaS may not be about selling software, but about selling outcomes and ecosystems.

Call to Action: Evaluate your own SaaS stack. Which tools could you replace with a simple AI-generated alternative? Start vibecoding your own solutions and see the savings firsthand.

What do you think? Is SaaS doomed, or will it adapt? Share your thoughts in the comments!