Yes, You're Royally Screwed. Now Here's What to Do About It.

Welcome to the SaaSpocalypse

It’s 7am on a Monday. You’re a SaaS CEO staring at your stock ticker. Your company is down 34% in three weeks. Your Slack is lighting up — your board chair wants an “AI strategy deck by Friday.” Your VP of Engineering just texted you that he’s leaving for an AI startup. And your biggest customer just asked on their QBR: “Why am I paying $80 per seat when an AI agent can do this for $0.02 per task?”

Welcome to the SaaSpocalypse.

I’m not going to sugarcoat this. If you’re running a traditional SaaS company — one that sells access to software on a per-seat, per-month basis — you are in serious trouble. In early February 2026, nearly $2 trillion in software market capitalization evaporated. Atlassian dropped 35% in a single week. Salesforce, ServiceNow, Intuit — all cratered. Traders at Jefferies coined the term “SaaSpocalypse” and described the selling as “get me out” style.

Satya Nadella said it plainly: SaaS applications are “essentially CRUD databases with a bunch of business logic,” and that business logic is migrating to the AI tier. When the CEO of the company that defined the modern software industry tells you the model is dying, you should listen.

But here’s what I want to tell you that nobody else is saying: the SaaSpocalypse isn’t about AI replacing your software. It’s about you running a software company when you need to be running an AI company. Those are fundamentally different things. And the journey from one to the other is the hardest transformation you’ll ever make — harder than going from on-prem to cloud, harder than going from perpetual licenses to subscriptions.

I know because I’ve made that journey. Four times — at Microsoft, Google, ThoughtSpot, and now AmpUp. More on that in a moment.

---

The Five Stages of SaaSpocalypse Grief

Before I tell you what to do, let me tell you where you probably are. Every SaaS CEO I talk to is somewhere on this spectrum:

Denial. “We already have AI features. We added a chatbot last quarter.” Bolting AI onto your SaaS product is like putting a spoiler on a minivan and calling it a race car.

Anger. “This is just hype. Our customers aren’t going to switch.” You might be right — for the next 12 months. But the companies building AI-native alternatives are getting smarter every day, and your product is staying exactly the same.

Bargaining. “Maybe we can acquire an AI company. Or hire a Head of AI.” This is the most dangerous stage because it feels like action but it’s actually avoidance. You can’t outsource your way to becoming an AI company any more than Blockbuster could have outsourced its way to becoming Netflix.

Depression. “Our moat is gone. A teenager with Claude can replicate our core product in a weekend.” Partially true — but code was never your real moat. Your understanding of your customer’s problem was.

Acceptance. “We need to fundamentally transform.” If you’re here, keep reading. This is where the real work starts.

I’ve lived this transformation four times — at Microsoft, Google, ThoughtSpot, and now AmpUp — and I’ve been on both sides of it. I’ve seen what doesn’t work (4–6 month AI cycles at Microsoft, like running a marathon in ski boots), what does work (shipping 50 experiments a quarter at Google against a $10B revenue base), and what happens when you’re doing AI before anyone believes in it (building a $4.5B company at ThoughtSpot starting in 2012). What I learned across all four: the transformation from SaaS company to AI company requires you to rethink nearly everything about how your company operates. Not “add an AI feature.” Not “hire a machine learning team.” Rethink everything.

---

SaaS Company vs. AI Company: It’s Not What You Think

Everyone is talking about “adding AI” to their product. That’s the wrong frame entirely. The difference between a SaaS company and an AI company isn’t whether you use machine learning somewhere in your stack. It’s a difference in DNA.

Here’s the simplest test I know: if you turned off every AI component in your product tomorrow, would your customers still pay? If yes, you’re a SaaS company with AI features. If no, you might actually be an AI company.

Gong without AI is still a call recording and CRM platform. Salesforce without AI is still a database with forms. Atlassian without AI is still a ticketing system. Turn off the AI and the product still works. The AI is decoration. Valuable decoration, maybe — but decoration.

AmpUp without AI is nothing. AmpUp (ampup.ai) is building a sales brain — a continuously learning engine that gets smarter from every customer interaction, every call, every deal. It prepares reps before every conversation, coaches them after, and compounds those learnings across the entire organization. There is no product without the AI. The AI doesn’t enhance the experience; the AI is the experience.

Apply the “turn off the AI” test to your own company. Be honest about what you find.

But the difference goes deeper than product architecture. It’s a different way of building, a different way of thinking, and a different way of making promises. And that last word — promises — is where the transformation has to start.

---

Step 1: Stop Selling Access. Start Making Promises.

The single most important shift in becoming an AI company isn’t technical. It’s about fundamentally changing what you offer your customers.

A SaaS company sells access. “Here’s a login. Here’s what you can do with our tool. Good luck.”

A better SaaS company sells capability. “Our platform enables you to manage your sales pipeline, track your metrics, and coach your team.”

An AI company makes a promise — a specific, measurable outcome it commits to delivering. “We will deliver X outcome in Y timeframe — and we’ll prove it.”

The progression from access to capability to promise is the entire SaaS-to-AI journey in three words.

And until you know what promise you’re making, nothing else matters — not your architecture, not your hiring plan, not your AI roadmap. The promise is the North Star that everything else serves.

At AmpUp, our promise is specific: we will bend the sales growth curve for your company so it is closing 30–100% more in incremental ACV in the next 6 months. That’s AmpUp’s promise — yours will be different. But the reason we can make that promise is because every interaction generates data about what works. Every pre-call briefing, every post-call debrief, every coaching moment feeds back into the system. We measure whether the rep’s behavior actually changed. We measure whether that change improved outcomes. And we compound those learnings across the entire organization.

Gong can’t make that promise. Gong sells access to a platform that records and analyzes calls. It’s a powerful tool. But it’s a tool. The customer is responsible for translating Gong’s insights into changed behavior and improved outcomes. That’s the gap between a SaaS company and an AI company.

So here’s your first step. Figure out what promise you can make to your customers. Not what features you can build. Not what access you can sell. What promise can you make? What outcome will you deliver?

---

Step 2: Rethink Your Engineering Culture

This is the part nobody wants to hear. But once you’ve committed to a promise, you’ll immediately realize your current engineering culture can’t deliver it.

Your SaaS engineering culture — the one that made you successful — is optimized for the wrong things. Your best SaaS engineers gather requirements, do principled design, anticipate worst cases, and ship polished, well-tested features. That discipline built your company. It’s also what will kill it.

Compare the mindsets:

SaaS Engineer	AI Engineer
Gathers requirements from product managers	Owns outcomes; arrives with hypotheses to test
Does principled, careful design upfront	Iterates fast; expects most experiments to fail
Anticipates worst cases and designs for them	Measures everything; lets data reveal worst cases
Builds features	Builds scaffolding: measurement, pipelines, experimentation
Ships a product and maintains it	Ships an experiment and learns from it
12-month feature roadmap	12-month learning roadmap with hypotheses

At Google, my team didn’t build “features.” We built the infrastructure to run 50 experiments a quarter, measure them with statistical rigor, and ship the ones that moved the needle. That scaffolding was our real competitive advantage — not any single algorithm.

Your best SaaS engineers might be your worst AI engineers. The habits that made them great can actively work against them.

This doesn’t mean they can’t learn. But it means the transformation isn’t just strategic — it’s cultural and personal. You’re asking people to unlearn the instincts that made them successful.

One caveat: I’m not saying systems engineering discipline goes away. You still need reliable data pipelines, solid APIs, and infrastructure that scales. The AI engineering mindset lives on top of solid systems engineering, not instead of it. The mistake is when that’s the only mindset.

---

Step 3: Stop Building Features. Start Building Scaffolding.

You’ve made your promise. You’ve started shifting your engineering culture. Now here’s the tactical question: what should your engineers actually be building?

If I could give every SaaS CEO one piece of advice, it would be this: the most important code at an AI company isn’t the product. It’s the scaffolding around the product.

What do I mean by scaffolding? The measurement system that tells you whether your AI actually changed a customer’s outcome. The experimentation framework that lets you test 50 ideas a quarter instead of shipping 4 releases. The data collection pipeline that turns every user interaction into training signal. The evaluation infrastructure that tells you if your model is getting better or worse.

Think about what sits underneath Claude or ChatGPT. You see a chat box. A simple text input and a response. But underneath that tiny interface is one of the most sophisticated scaffolding systems ever built — RLHF pipelines, evaluation frameworks, measurement systems, data collection infrastructure, safety testing, red-teaming processes. The iceberg underneath the waterline is massive.

The visible product is 10% of the value. The scaffolding is the other 90%. Most SaaS companies have the iceberg upside down.

Fire your product roadmap. I mean it. A SaaS company has a 12-month roadmap with committed features. An AI company has a 12-month learning roadmap with hypotheses to test. Replace “Build Advanced Analytics Dashboard — Q3” with “Achieve 15% improvement in customer outcome X — Q3, via 20 experiments.”

---

Step 4: When Code Is Free, Taste Is the Edge

Here’s the most counterintuitive thing I’ll say in this entire blog: in the age of AI, the most valuable skill isn’t engineering. It’s taste.

Generating code is now essentially free. A capable developer with an AI coding assistant can produce in hours what used to take weeks. The barrier to building software has collapsed. Which means your competitive advantage can no longer be “we have good engineers who can build complex software.” Everyone can build complex software now.

So what’s actually scarce?

Product taste. The judgment to know what to build and, more importantly, what not to build.

Customer understanding. The deep, almost intuitive understanding of what your customer is actually trying to accomplish — which is often different from what they say they want.

Positioning. The ability to incept a concept in a customer’s mind. To create a category, name it, and own it before anyone else even realizes it exists.

Taste in AI product design. AI is brilliant 80% of the time and baffling 20% of the time, and the UX is what bridges that gap. At ThoughtSpot, we were radically data-poor and we learned that smoothing the jagged edge isn’t a technical problem. It’s a product taste problem. Thoughtful UX that sets the right expectations, fallback mechanisms that maintain trust, feedback loops that close the gap over time. That playbook works whether you have a billion data points or a thousand.

Look at why Claude is beating ChatGPT for a significant and growing segment of users. It’s not because Anthropic has a fundamentally better model. It’s because Anthropic has better taste. They understood a specific user deeply — the thoughtful knowledge worker who wants a thinking partner, not a parlor trick. That’s product taste plus customer understanding plus positioning. And it’s winning against a company with 10x the resources and a massive head start.

And this connects directly back to the promise. When you’re selling access, taste is a nice-to-have — users will tolerate clunky UX if the tool is useful. When you’re making a promise about outcomes, taste is existential. Because the AI will be wrong sometimes, and taste is what keeps the customer trusting your promise while the system learns.

When code is free and models are commoditized, the company with the best taste wins.

---

Step 5: Your Moat Is Your Rate of Learning

If I had to distill everything I’ve learned across Microsoft, Google, ThoughtSpot, and AmpUp into a single principle, it’s this: your moat is not your code, your data, or your brand. Your moat is your rate of learning.

The company that runs 50 experiments a quarter will crush the company that ships 4 releases a quarter, even if the second company has 10x more engineers and 100x more data. Because each experiment teaches you something. Each learning compounds. And over time, the gap becomes uncrossable.

This is what I lived at Google. We weren’t smarter than the Bing team at Microsoft. We weren’t working harder. We were learning faster. Our cycle time from hypothesis to result was days, not months. That compounding advantage is what made the difference.

Here’s how to think about it mathematically. If your company learns and improves 1% per week through rapid experimentation, and your competitor improves 1% per quarter through traditional releases, after one year you’ve compounded 68% improvement while they’ve compounded 4%. After two years it’s 180% vs. 8%. The gap is exponential, and it never closes.

I know this from the hard side too. At ThoughtSpot — a company that was AI-native from day one — we nearly got killed because our rate of learning about the market wasn’t fast enough. We missed the cloud migration wave by four years. We were selling a bundled stack (database + BI + AI) when customers were moving to unbundled best-of-breed. Both times, the signals were there. Customers were telling us. The data was visible. But we weren’t set up to learn from those signals fast enough and act on them. Rate of learning isn’t just about your models. It’s about everything.

That lesson is literally why AmpUp exists. Our mission is to increase your organizational velocity by two orders of magnitude — because I learned the hard way that being AI-native isn’t enough if you can’t learn fast enough to keep up with where your market is going.

Most SaaS companies don’t even have a “rate of learning” metric. They measure output, not learning.

---

The Hard Truth About the Journey Ahead

I want to be straight with you. This transformation is going to be brutal.

You will lose engineers who don’t want to work this way — who find comfort in careful design and polished releases.

You will have to rebuild your measurement infrastructure from scratch, because NPS scores don’t measure customer outcomes.

You will ship things that feel half-baked, because you’re optimizing for learning speed.

Your board will push back when you tell them you’re replacing the feature roadmap with a learning roadmap.

Your pricing model will have to change, because you can’t charge per seat when the AI is doing the work.

Your sales team will need to learn to sell promises instead of feature lists. That’s a completely different skill.

All of this is going to be uncomfortable. Most of it will feel like going backward before you go forward.

But the alternative is worse. Because the companies that figure this out — the ones that build the scaffolding, obsess over their rate of learning, develop the product taste to smooth the jagged edge, and have the courage to make real promises — those companies will eat your lunch. Not because they have better code, but because they have better feedback loops and they’re getting smarter every single day while your product stays exactly the same.

---

Five Principles, If You Remember Nothing Else

If this piece leaves you with anything, let it be these:

Your product is not your moat. Your rate of learning is. The company that compounds learning fastest wins — not the one with the most features, the most data, or the most engineers.

If you can’t articulate your promise, you don’t have one. Not what your product does. What outcome you deliver. If the answer is “we give customers access to a platform,” you’re still a SaaS company.

Build the scaffolding before you build the product. Measurement systems, experimentation infrastructure, feedback loops — these are the 90% of the iceberg that makes the 10% your customers see actually work.

The culture shift is harder than the technology shift. You’re asking people to unlearn the instincts that made them successful. That’s personal, not just strategic.

Learning velocity applies to everything — not just your models. Go-to-market, positioning, pricing, hiring. The companies that treat every function as an experiment will outlearn the ones that only experiment in the lab.

---

The SaaSpocalypse is real. The panic is justified. But panic without direction is just noise.

The path out isn’t “add AI features.” The path out is to become a fundamentally different kind of company — one that makes promises instead of selling access, one that builds scaffolding instead of features, one that measures outcomes instead of engagement, and one that treats its rate of learning as its most precious competitive asset.

In five years, the SaaS companies that survive won’t look like SaaS companies anymore. They’ll be learning machines that happen to sell software. The ones that don’t make that shift will still exist on paper — but they’ll be the next generation of legacy systems, waiting to be acquired for their customer lists.

You already know which stage you’re in.

The only question is whether you move before your customers do — or after.

Forward this to a SaaS CEO you care about.

---

Amit Prakash is the founder and CEO of AmpUp, an AI company building a sales brain that continuously learns from every customer interaction, and the co-founder and former CTO of ThoughtSpot, a $4.5B analytics company. Previously, he led machine learning teams at Google and worked on Bing at Microsoft. He has been building AI products since 2012.