[Digital Today reporter Chi-gyu Hwang] AI-enabled so-called vibe coding, which lets people code in natural language, is making it easier for companies to build and use software themselves. But many still question scenarios raised in some quarters about a “SaaSpocalypse,” meaning the end of SaaS.

The prevailing view is that it will not be easy for large companies to throw out core software they used to buy and instead build it themselves.

Even so, the rise of AI is uncomfortable in many ways for companies that sell software to enterprises. Beyond share-price declines, they also face the burden of potentially landing in an increasingly weaker position at negotiating tables with customers.

AI is also bringing visible changes to how companies view software.

According to a recent Wall Street Journal report, FedEx CIO Vishal Talwar (비스할 탈워) said, “For now, we will continue to operate software internally.” But he sees uncertainty around software and the emergence of AI agents as an opportunity to reassess pricing models. “We are having proactive conversations to see how partners respond to this,” he said.

Some companies are sticking with the core software they have used, but are already deploying vibe coding for small app development or software optimisation.

Raj Sharma (라제이 샤마), global managing partner for growth and innovation at global accounting and consulting firm Ernst & Young (EY), said, “We have no plans to remove the SAP ERP we have used for a long time.” He added, “We are building SAP ERP-based optimisation in-house through vibe coding and AI agents.”

EY’s annual tech budget is about $10 billion, and it can save part of that budget through vibe coding by not immediately buying upgrades from SAP, the WSJ reported, citing Sharma. “Without technologies such as AI, vibe coding and agent frameworks, we would have had to upgrade SAP software again at a much greater cost,” he said.

Cisco Systems, widely known as a network equipment company, has also replaced a presentation software tool with its own AI agent. That lets Cisco save about $5 million a year in licence costs, the WSJ reported.

Cisco is pursuing ways to replace other software vendors with AI beyond presentation software. Some of those vendors have annual subscription fees ranging from $50 million to $200 million, the WSJ reported, citing Thimaya Subaiy (티마야 수바이), Cisco’s vice president of operations. “We need to look at every application we use and ask which of these can be replaced with automated workflows,” he said.

Among small and mid-sized companies, there are also cases of building in-house CRM systems with vibe coding. Small companies can more easily vibe-code CRM or ERP software to fit their needs because they do not face the same level of human, regulatory and legal complexity, the WSJ reported, citing corporate tech leaders.