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Every new Claude release drops and the same take goes viral: "AI will replace [X company]."
The reality is more interesting, 2 things are happening at once:
• The new software is skills. Every existing player with distribution and proprietary data can now become a software company. They already have the moat, they just needed the models to catch up.
• And the bigger shift is what software actually does now. It used to power your workflow. Now it completes it via skills and MCP. The product is no longer just a tool you operate, it is a skill that does the work.
Adobe is not just selling design software, it is selling an on-demand designer. Salesforce is not just a CRM, it is a sales rep. The smart ones are not selling these skills standalone either, they are bundling them directly into their existing software via MCP so the skill lives inside the tool you already use.
Most companies will buy off the shelf, customise at the margins, and move on. Building from scratch only makes sense if you have genuine domain expertise the giants cannot replicate.
SaaS companies are not dying. They will become the employee of every single company.