n recent months, a provocative narrative has gained momentum across the technology sector: the idea that “SaaS is dead”. This argument suggests that because artificial intelligence can now generate complex code in seconds, the era of paying for software subscriptions is coming to an end. The theory proposes that any organisation can simply ask an AI to build a custom version of a platform and run it themselves for free.
While AI is undoubtedly a revolutionary automation tool, this perspective overlooks the fundamental mathematical and operational realities of running a professional software platform. At Vertex, we believe it is essential for business leaders to understand that code is only one small component of a functional, secure, and sustainable digital environment.
The Infrastructure Minimum
It is a common misconception that software costs nothing to run once the code is written. Even if we assume the AI provides the code at zero dollars—which, given the high computational costs of running large language models, is rarely the case—that code requires a “home” to exist in.
To run a custom platform, an organisation must pay for central processing units (CPU), database storage, and cloud hosting. Even for a modest application, these basic infrastructure requirements typically start at $10 to $100 per month. This cost is constant, regardless of whether the code was written by a human or an AI.
The Management and Maintenance Burden
Creating code is a one-time event; maintaining a platform is a continuous commitment. This is a lesson the industry has already learned through the history of open-source software. For decades, high-quality open-source code has been available for free, and many organisations have the technical capability to run their own servers. Yet, the majority still choose to pay for SaaS subscriptions.
The reason is simple: management overhead. If you build a custom platform using AI, you are now responsible for:
- Infrastructure Management: Ensuring servers remain online and are correctly configured.
- Code Maintenance: Fixing bugs that inevitably appear as web browsers and operating systems evolve.
- Testing and Deployment: Every update requires rigorous testing to ensure new features do not break existing functionality.
- Customer Support: Even internal tools require a support structure to assist users when things go wrong.
AI-generated code is no different from any other code; it requires a dedicated team or significant time investment to remain operational.
The Rising Cost of Cyber Security
As cyber attacks become increasingly frequent and sophisticated, the requirement for robust security protections has never been higher. Running a custom-built platform in the current threat landscape demands a significant investment in security posture.
To operate responsibly, a custom platform should consider:
- Compliance and Frameworks: Aligning with international standards such as ISO 27001 or SOC 2 to ensure data is handled securely.
- Regular Penetration Testing: Engaging expert ethical hackers to identify and help remediate vulnerabilities before they can be exploited.
- Security Monitoring: Constant oversight to detect and respond to potential threats in real-time.
When you factor in the costs of infrastructure, management, maintenance, testing, and professional-grade cyber security, the cost for a custom-built platform is more than $2000 per month.
The Value of the SaaS Model
Most companies spend significantly less than $2000 per month on their standard SaaS subscriptions. By choosing a SaaS provider, an organisation is effectively “crowdsourcing” the cost of a multi-million dollar team of developers, security experts, and infrastructure engineers.
While AI makes it easier for new competitors to enter the market and build features quickly, it does not eliminate the fixed costs of security and reliability. If anything, the increasing complexity of cyber threats suggests that the value of established, well-maintained SaaS platforms will only grow. The brand, the proven security record, and the dedicated support are what businesses are truly paying for—not just the code.
The “SaaS is dead” narrative fails because it ignores the math. AI is a powerful tool for efficiency, but it is not a replacement for the rigorous infrastructure and security required to run a modern business.
If you are evaluating whether to build custom tools or stick with established providers, or if you want to ensure your current digital infrastructure is resilient against modern threats, contact the most trusted cyber experts at Vertex Cyber Security. We provide expert guidance and tailored solutions to help your organisation maintain a strong and secure posture.