Is SaaS Dead? Why AI Startups Struggle With Distribution

Is SaaS really dying—or are we misunderstanding what is actually changing?

In this episode of Driving Tomorrow: Conversations with Industry Leaders, Alicia Shapiro speaks with Sam Allen, CEO of Iterable, about the future of SaaS and enterprise AI—and why building strong technology is only the beginning.

Sam explains why the “SaaSpocalypse” may be overblown, how AI is putting pressure on traditional seat-based software models, and why distribution, trust, security, support, and execution will help determine which companies succeed. He also discusses why emerging AI startups may struggle to sell and scale within the enterprise, even when they have built compelling products.

Some highlights from the interview:

• Why the “SaaSpocalypse” narrative misses the larger issue

• What “software is cheap, distribution is expensive” actually means

• Why traditional seat-based SaaS models are under pressure

• The hidden challenges of deploying and maintaining AI in production

• Why trust, governance, security, and compliance shape enterprise adoption

• What separates companies successfully scaling AI from those still experimenting

• Why AI can increase productivity while moving bottlenecks elsewhere in the workflow

Watch the full conversation for a practical look at the future of SaaS, AI startups, and enterprise software—and what leaders should be doing now to prepare.


🔗 Learn more about Iterable: https://iterable.com

🔗 Connect with Sam Allen on LinkedIn:   / sam-allen-327253

 

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