By Kevin Sawicke
I've spent the last 20 years in the belly of the beast. From architecting systems at IBM and American Express to managing complex builds for CVS Health, NBC, and Komatsu, I've seen programming languages rise and fall like seasons. I've written in Java, PHP, and everything in between, often in environments where "security" isn't a buzzword - it's the entire foundation.
Lately, the loudest voices in tech are shouting that AI is going to "kill" SaaS development. They say that soon, anyone with a prompt can replace a whole team of engineers.
As the owner of Oak Harbor Tech, I'm here to give you the view from the architect's desk. AI isn't killing SaaS development; it's killing mediocre SaaS development. And for the business owner, that is a massive distinction.
The Rise of the "Thin Wrapper"
We are currently in a "bubble" of SaaS products that are nothing more than "thin wrappers" around an AI model. If a software's only value is that it provides a nice UI for ChatGPT, that software is already dead.
In my experience at places like NBC or Amex, we didn't build software just to do a task; we built it to protect data, scale under pressure, and integrate with a thousand moving parts. AI can generate a code snippet, but it can't (yet) understand the structural integrity of a multi-tenant enterprise system.
Why the "Death of SaaS" is Great News for You
If you are a business leader, you shouldn't be worried about AI replacing software; you should be excited about AI raising the bar. Here is how I see the landscape shifting for your business as we head toward 2026:
From "Tools" to "Agents"
The old SaaS model was: "We give you the tool, you do the work." The 2026 model is: "The software is the employee." We are moving toward Agentic SaaS - software that doesn't just show you a dashboard but actually executes the business process. My background in high-level architecture tells me that building these "agents" requires more human planning, not less, to ensure they don't hallucinate with your company's bank account.
Customization is the New Standard
AI has made "basic" code cheap. This means the money you used to spend on "standard" features can now be funneled into Customized Software Development (CSD).
- My Advice: Don't pay for a generic SaaS subscription that only does 70% of what you need. In 2026, the cost-to-value ratio of building your own "IP" (Intellectual Property) is better than it has ever been in my two decades of programming.
Security is the Final Frontier
Having worked in Cyber Security, I can tell you that AI-generated code is a double-edged sword. It's fast, but it's often "leaky."
- My Advice: When you hear that "AI can build your app," remember that someone still needs to be the Security Architect. You need a human who understands the Java or PHP backends, who knows how to harden a database, and who ensures that your "AI-powered" app isn't accidentally leaking customer data to the public web.
The Kevin Sawicke Strategy: How to Build in 2026
If you want to win in this new era, I want you to look at your tech stack through three lenses:
- Stop Chasing Features, Start Solving Workflows: If a software doesn't save you 10+ hours a week, it's just digital clutter.
- Demand Ownership: In an AI world, data is the only moat you have. If you're using "off-the-shelf" SaaS, they own your data patterns. If you build custom (CSD), you own the asset.
Hire Architects, Not Just Coders: AI can "code," but it can't "plan." You need a partner who understands how your software will talk to your accounting system, your CRM, and your field teams simultaneously.
The Bottom Line
Is AI killing SaaS? No. It's forcing SaaS to grow up.
I've spent 20 years making sure the systems for the world's biggest brands don't fail. At Oak Harbor Tech, I'm bringing that same "architect-first" mentality to your business. We don't just "build apps"; we build secure, scalable engines that use AI as a tool - not a crutch.
Let's stop talking about "prompting" and start talking about "planning." Your business deserves a foundation that won't crumble when the next AI update rolls out.