from Hacker News

SaaS is just vendor lock-in with better branding

by pistoriusp on 6/6/25, 6:10 PM with 135 comments

  • by lokimedes on 6/6/25, 7:27 PM

    It is Adam Smith’s “rent seeking” in a modern hyper-scalable form. It should be shunned and criminalized on a basis of anti-social economics. Now the other extreme of free software is, arguably, also (economically) bad, as it fails to reward the effort of the creators proportionally to the value gained by the user.

    Let us buy our software, and separately, offer us a service agreement that actually has to provide value in its own right. The bundling of these in SaaS is what makes this obscene.

  • by citizenpaul on 6/6/25, 8:36 PM

    IMO Vendor lock in is when you ask your boss why cant we use tool NEWTHING? Then they tell you its because they have a 5 year contract with Oracle/MS/IBM/Salesforce and that is what we are going to use. We aren't going to have 10 platforms.

    Which means in 10 years they will really be locked in because no one is going to un-entrench that thing.

  • by bob1029 on 6/7/25, 5:19 PM

    Minimizing dependencies is probably close to the #1 thing you can do to improve the survivability of your product and business.

    In a prior role, I was responsible for figuring out the best way to deliver a docusign-style experience that integrated with our product. After having conversations with two of the biggest vendors (DocuSign/Adobe), we decided the constraints of their APIs were causing too much friction with how our product/customer wanted things to work. We went with a fully in-house solution.

    In most situations, trying to reinvent something like DocuSign is a terrible idea. In this case especially so since often you are using it simply because it is trusted (not because it is technically superior). In our case, the product was already installed and deeply trusted by the customers. They would have gone along with DocuSign, but they also had no problem with us doing it first-party.

    Ultimately, it was a lot of up front work to get this implemented, but the customer absolutely loves it. We had to make some minor tweaks to how it functioned and that really highlighted why this was a good path. If we had gone with DocuSign, Adobe, et. al., that minor tweak would have turned into a major refactor and hack around shitshow.

  • by 0xbadcafebee on 6/6/25, 7:21 PM

    So the author is saying, don't buy SaaS, that's vendor lock-in. Instead just go all-in on one platform... like Cloudflare, the one (& only) platform that the SDK he writes works on. Which isn't vendor lock-in? No, wait, everything is vendor lock-in:

      No matter what choice you make, it's always going to be vendor-locked in.
      Switching out something, even if it's open source and self-hosted,
      means that you're rewriting a lot of code.
    
    That's not what lock-in means. Just having a vendor-specific component or integration, is not the same thing as being locked-in to a vendor or integration.

    Locked-in means that switching it out for something else is either A) impossible, or B) would require an investment greater than just sticking with the existing thing.

    When you write software in a loosely-coupled, highly-cohesive way, the intersection between different components is designed to not take much work to replace one component or another. The same is true of systems. If the interfaces of those components are simple, and their use is cohesive, it should not be difficult to replace a part. However, if your components are not cohesive, then it will be a huge pain in the ass to replace anything.

    So, no, it's not a good idea to choose a platform because "everything is lock-in, so fuck it, i'll lock myself in even more!" As a developer, I can see the appeal, as it means less work for you. But as a business owner, this is a stupid reason to choose a solution. Choose solutions that will support the business and give it flexibility to change over time.

  • by solatic on 6/6/25, 8:34 PM

    OP isn't really arguing against SaaS (after all, OP recommends in the end either Cloudflare or Supabase, which are provided as a service...), that's just the clickbait title, rather OP is arguing against signing up for a hundred different vendors and the overhead of commercial relationships with a hundred different vendors.

    Which is... not really controversial. Fewer vendors makes your life easier. Fewer dependencies makes your life easier. It would be awesome if you could build your entire product based on the standard library alone! Sadly... that's not really realistic. Nice pipe-dream though.

  • by AstroBen on 6/6/25, 7:41 PM

    So to fight vendor lock in.. double down by locking yourself in even more, tying everything to one platform?
  • by abelanger on 6/6/25, 9:00 PM

    This reads more like a pitch for open-source than anything else.

    > Switching out something, even if it's open source and self-hosted, means that you're rewriting a lot of code.

    The point of something open-source and self-hosted is that it resolves nearly all of the "taxes" mentioned in the article. What the article refers to as the discovery, sign-up, integration, and local development tax are all easily solved by a good open-source local development story.

    The "production tax" (is tax the right word?) can be resolved by contributions or a good plugin/module ecosystem.

  • by jgord on 6/7/25, 4:39 AM

    Perhaps the difference between a religion and a cult is that you can leave a religion.

    Likewise .. if you can get your data in a standard format and walk away, you are not locked-in.

    Customers tend to feel less aggrieved when they have access to their data - too many SaaS platforms dont allow this.

  • by sophiabannet1 on 6/19/25, 6:32 AM

    Totally agree, SaaS often shifts complexity rather than removing it, integrated platforms feel like coding with training wheels off.
  • by foundart on 6/7/25, 5:53 AM

    With SaaS you mostly give away the chance to benefit from the near zero marginal cost of software. The vendor probably shares the benefit of the marginal cost via lower prices, but at some scale of users and some price per user, the SaaS customer will end up getting a bad deal.

    The problem is, you'd be foolish to run your own thing in the early days of a company. It's only when you've succeeded and scaled that it becomes a problem. You survived long enough to need to scale in part by keeping costs low and one way you did that was by using SaaS services instead of building and/or running versions of those tools yourself. That was smart.

    As the business grew at least one or two of those SaaS services got so entwined into the daily operations of your company that there is now no way to replace them without a lengthy, risky, and expensive migration project.

    The SaaS problem is a negative side effect of your success.

    edited - a typo and a word change

  • by missedthecue on 6/6/25, 7:14 PM

    That's why there's so much of it. Annuity like income and pricing power is an attractive business model to create around.
  • by paxys on 6/6/25, 8:49 PM

    I'm at the stage of my career where vendor lock-in (aka "we are going to use this stable boring corporate-backed tech forever instead of migrating between your hot new JS frameworks every 6 months") is a godsend. Yes I'll happily use AWS. No I will not spend my time to learn and implement RedwoodSDK, whatever that is.
  • by gavmor on 6/6/25, 6:59 PM

    The discovery tax is actually something like O(n log n), because you have to also search and also compare. It's part of The Mess We're In[0].

    0. https://www.youtube.com/watch?v=lKXe3HUG2l4

  • by canadiantim on 6/6/25, 6:56 PM

    Not if it’s open data and people can easily move their data between vendors
  • by davidpaulyoung on 6/6/25, 7:32 PM

    Use only open-source SaaS with the option to self-host.
  • by antithesizer on 6/6/25, 9:33 PM

    Saas, like streaming media generally, has always been a play to remove the control that comes with ownership from customers and keep it in the hands of big tech. Remember when they discontinued the iPod? It wasn't because people weren't buying.
  • by nitwit005 on 6/6/25, 9:00 PM

    The real issues is that, 3 years down the line, they'll dramatically the price, and then raise the price again, and again.

    Because that's the incentive, particularly with products that are naturally fading and ceasing to make new sales.

  • by pjmlp on 6/7/25, 5:56 AM

    SaaS is the solution to get devs to actually pay for tooling, like other professionals.

    Who doesn't like it, should promote that upstream gets more than bug reports and push requests, as means to pay their bills.

  • by dasil003 on 6/6/25, 6:47 PM

    The title is incongruous with the conclusion.
  • by klysm on 6/7/25, 12:27 AM

    The important thing about vendor lock in is allowing another company to have pricing leverage over you.
  • by exiguus on 6/6/25, 8:11 PM

    Consider using SaaS only for non-critical sectors where its discontinuation would not threaten your business's survival. Ensure you have alternatives in place, such as switching to another SaaS provider, self-hosting, or developing an in-house solution. I have witnessed companies fail because their core operations relied too heavily on a SaaS platform."
  • by atoav on 6/7/25, 8:35 AM

    Well SaaS enshittification is among the reasons why open source software is getting more popular. If you are curious why people are sceptical of subscription models look no further than Adobe.

    As a former freelancer most of the software I still pay for has a model in the form of: Pay 350 € once, get 2 years of updates and use it as long as you like. If you want new updates after you get a reduced price of 120 € for an extension period.

    This is my favourite license model for commercial software since it gives me maximum planability of my expenses and it gives the software company an incentives to add substentially useful features with new updates instead of just collecting rent.

  • by turnsout on 6/6/25, 11:51 PM

    Ooh, are we just saying nonsense phrases now? How about “React is just race conditions with better branding”