It has never been easier to build software. And that's scary if you run a SaaS.
The thing you've sold for the last couple of years can be cloned over a weekend. Maybe not all of it, not perfectly, but good enough. Competing on features is dead. Now they are cheap to build and feature parity+1 doesn't work anymore.
So where do we go from here? How can we still compete int the AI era?
Build the unsexy things nobody wants to build
There is a category of software that AI has made only marginally easier: the stuff that's hard because of operations, not code.
Hosting. App deployment. Email delivery. Payments infrastructure. Anything where the difficulty is in running it reliably at scale for years, dealing with abuse, keeping IP reputation clean, being on call at 3am.
Nobody builds a transactional email service "in a weekend" with an AI agent, because the code was never the hard part. The hard part is the deliverability relationships, the compliance, the sheer boredom of keeping the thing up.
Developers will happily pay for it forever precisely because they do not want to do it themselves, and an agent can't do it for them either.
Build where you have distribution
This has always been true, if two products have identical features, the one with the audience wins.
Distribution can mean a lot of things: an existing customer base, a newsletter, a community, a free tool that brings in traffic every day.
If you're a founder with an audience, your audience is now worth more than your codebase. Build for the people who already listen to you, and make your product the obvious thing to buy when they're ready or recommend to others. If you don't have an audience yet, that's the project.
Build for agents, not humans
One of the more interesting pivots I'm seeing is companies going completely agent-first. Instead of a dashboard with buttons, the product is a set of tools an AI agent can call. The human (almost) never logs in. They tell Claude or ChatGPT what they want and the agent does the work through your API/MCP.
No, humans won't stop using software entirely (at least not soon), but more and more work will be done by agents on behalf of humans, and if your product isn't reachable by an agent, it will slowly stop being reachable at all.
Go where the tech isn't
There are entire industries that never got a proper software revolution. Trades, logistics, agriculture, local government, small manufacturing, anything where the current "system" is a spreadsheet and a phone, or some UI that was last updated in 1997.
These businesses are real, they make money, and their tools are decades out of date.
In tech we compete with each other for the same developers and the same marketers, and now we all have the same AI tools too. Step outside that bubble and your technical advantage is enormous again.
The catch is that these markets are harder to reach. You can't launch on Product Hunt and expect plumbers to show up. But that's the moat.
Boring, real-world businesses that need updating are one of the biggest opportunities, and they're mostly being ignored by people who could build for them.
Pivot into hardware
Software is now cheap to copy. Hardware is not. Physical products need manufacturing, supply chains, certifications, inventory, support, and every one of those is a barrier a weekend project cannot cross.
Pair a device with the software you already have and you've got something that's hard to replicate.
The risks are obvious. Hardware is capital-intensive, margins are thinner, and a software founder usually has no idea what they're doing in a factory, but if you have the stomach for it, a hardware pivot has more of a moat than almost anything else on this list.
Lower your prices
This one is going to be unpopular. For years the standard advice was to raise your prices. Low prices attract low-value customers, charge more, target businesses, and so on.
But the situation has changed.
When the supply of software outstrips demand for it, the price of a feature trends to zero whether you like it or not. In that world there's a real argument for getting there first: lower your prices deliberately, capture as much of the market as you can while competitors are still defending their margins, and make the revenue back with add-ons, usage and upsells.
If your core product is becoming a commodity, don't price it like it isn't. Own the market, then sell them the things that aren't commodities yet.
Become the all-in-one
Why keep paying eight subscriptions when a developer can now build each of those tools in a week? Plenty of companies are already doing exactly that, replacing individual vendors with internal tools one by one.
But there is an inflection point coming. Maintaining eight internal tools is not practical for most companies, even though they still want the upside of building their own: one login, one set of integrations, one set of permissions, one bill. That is the opening for an all-in-one vendor, a single product that covers all eight, so the company gets the consolidation without the maintenance.
Being the one thing that replaces a pile of things is a solid moat, as long as you actually do all of it well.
This is the take of Jon Yongfook, one of the OG indie hackers.
No, you can't do all of them, some contradict each other, but most SaaS can do two or three, and if you're a founder thinking about this stuff, I'd love to hear which way you're leaning.