The SaaS conundrum – the death or rebirth of software?

Jan 22, 2026

Kilian Niemarkt, Senior Client Portfolio Manager for Global Equities, looks at the evolution of the software landscape and discusses why platforms with AI integration are the future.

Key takeaways

  • Cloud-based software has been a growth engine for the technology industry for decades, but more recently, this thesis has been tested and we are observing a reversal of the trade back to infrastructure.
  • Companies can now build agents in-house and don’t need to rely on software as a service (SaaS) vendors. The possibility that SaaS software will be replaced in the long term by new AI-based solutions has entered the narrative.
  • However, some believe AI will integrate into SaaS platforms rather than replace them. This will create smarter workflows and richer user experiences. In addition, software companies will benefit from lower development costs.

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