A software delivery model where applications are hosted in the cloud and accessed via subscription, rather than installed locally.
SaaS dominates B2B software because it aligns vendor and customer incentives: the vendor must continually deliver value to retain the subscription. Key SaaS metrics are ARR, NRR, CAC, LTV, and churn. AI is disrupting traditional SaaS economics — AI agents can now complete workflows that previously required SaaS tools, and some SaaS businesses are evolving into AI service providers that sell outcomes rather than software access.
Users are sick of logging into 15 different apps. The next billion-dollar software companies will exist entirely inside Slack, iMessage, and email.
Freemium was the ultimate growth hack for SaaS. In the AI era, it is a fast track to bankruptcy. Here is why you must charge from day one.
Free — The AI Founder Stack
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