Is this the end of Software as a Service? Interview with Paulo Rosado (CEO of OutSystems)
The rise of AI Agents is bringing about major changes in the IT world. Satya Nadella, CEO of Microsoft, recently expressed the expectation that the introduction of AI agents could usher in the end of Software as a Service (SaaS). But how realistic is this prediction? In a recent interview with Paulo Rosado, CEO of OutSystems, he was asked this question and we discussed how companies will approach software in the future.
Major changes in enterprise systems
In the world of enterprise applications and systems, the nature of software is constantly evolving. Where companies previously relied on static applications and long-term licences, these are now increasingly being replaced by flexible SaaS solutions. However, with the advent of AI agents, which automate tasks and handle data more intelligently, a new layer is emerging that can function on top of or instead of traditional applications.
“The nature of these applications is changing dramatically and will change even more profoundly in the future.”
According to Paulo Rosado, organisations must therefore revise their approach to software use and development. It is no longer sufficient to simply adopt off-the-shelf solutions; there is a need for systems that adapt quickly to changing circumstances and specific business goals.
Also read our article Is IT the new HR? How AI Agents are turning the workplace upside down
Is software still needed? Absolutely.
Despite the rapid developments in AI and automation, software remains an indispensable component of every organisation. The core of business systems, from ERP to CRM, will endure. The question, however, is how this software is developed and deployed.
“We are still going to need software, but we are finally coming to the conclusion that we need to automate the production of software.”
Rosado emphasises the role of automated tools and platforms that greatly simplify the building of software. Low-code and no-code platforms, which OutSystems itself also focuses on, are good examples of this. Integration with AI will only accelerate this trend, making organisations less dependent on external IT parties or complex development teams.
Also read our article: AI agents: the solution to the biggest data problem
Two major shifts: the nature of apps and build vs. buy
According to Paulo Rosado, two major ‘disruptions’ await us:
- The nature of enterprise apps. Applications are becoming more intelligent, more integrated, and sometimes even (almost) invisible to the user. AI is interwoven into every part of the business process, causing many repetitive tasks to disappear or become automated.
- From buying to building (or vice versa?). The classic question ‘do we buy a standard solution or do we develop something tailor-made ourselves?’ gains an extra dimension. AI and automated development tools make it more attractive to (have someone else) build proprietary software. At the same time, SaaS providers are increasingly incorporating AI into their products, narrowing the gap between ‘buying’ and ‘building’.
Also read our article: The end of SaaS? How AI agents are shaping the future of software
Automation as a driving force
The discussion of whether Software as a Service is definitively disappearing is likely too simplistic. It is more probable that SaaS will undergo a metamorphosis, partly due to AI. Automation will play a central role in how software is created and used. Instead of the end of SaaS, it is more realistic to speak of a next phase where SaaS solutions and AI assistants seamlessly merge.
“The nature of applications is changing, but there will still be a need for software. We will simply produce and integrate more intelligently.”
Satya Nadella’s prediction that AI agents would usher in the end of Software as a Service should be viewed with nuance. Although the technological shift is enormous, software remains an important component of organisations. However, the way that software is created and offered will change profoundly.
Paulo Rosado, CEO of OutSystems, underscores that AI and automation are changing the rules of the game for how software is developed and deployed. This does not mark a definitive end, but rather a new era for software and SaaS, where the automation of software production and the deployment of AI for business processes are central.
Watch an excerpt from the interview that Ai.nl had with Paulo Rosado, CEO of OutSystems here
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Job van den Berg is an AI keynote speaker, tech entrepreneur and author of five books on AI. He ships AI agents into production every week and delivers 150+ keynotes a year on AI agents and agentic commerce.
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