Why SaaS is Dying and its Power Platform replacements

Introduction

Hello, I’m Sam from Valto, and today I want to make a case that might sound a little provocative. It’s about SaaS.

We’ve known the Software as a Service model for the last decade or so, but I believe the way businesses consume SaaS is starting to change. I don’t mean the software itself is going away. What I mean is the model of paying recurring per-user subscriptions for every business problem is beginning to show cracks.

Many organisations now have large numbers of software tools. Some are underused, some overlap with each other, and many are not being fully utilised. At the same time, businesses are starting to look at whether it makes more sense to build solutions tailored to their own requirements rather than relying on a different subscription product for every process.

In this video, I’ll explain what’s changing and what it could mean for organisations reviewing their software investments.

Subscription Fatigue and Overlapping Tools

Many organisations are experiencing what could be described as subscription fatigue.

Businesses often run dozens of seat-based applications across different departments. Teams frequently purchase their own project management tools, reporting platforms, form builders, or workflow applications, sometimes without visibility of what other teams are already using.

The result is that organisations can end up solving the same problem multiple times using different software products, each with its own recurring subscription cost.

A common challenge is that many businesses use only a small portion of the functionality available within these products but still pay for the full licence. As organisations grow, subscription costs also increase because many platforms scale directly with headcount.

This creates a situation where software spending continues to rise, regardless of whether usage or business value grows at the same rate.

The Role of Microsoft 365 and AI

A significant change is the increasing availability of AI and application-building capabilities already included within Microsoft ecosystems.

Technologies such as Microsoft Copilot, Copilot Studio, Azure AI Foundry, Power Platform, SharePoint and Microsoft Teams provide organisations with tools to automate processes, build applications and integrate data without necessarily purchasing additional standalone products.

Instead of asking, “Which software product should we buy?”, organisations are increasingly asking, “How can we get more value from the Microsoft licences we already own?”

For many businesses, capabilities such as Power Apps, Microsoft Fabric and Copilot Studio open opportunities to create solutions that integrate directly with existing systems and data.

This can reduce complexity while also improving the user experience.

The Data Silo Problem

Another challenge created by large SaaS estates is data fragmentation.

Every SaaS platform typically stores its own data, often in separate databases accessed through separate user accounts and management interfaces.

As more systems are introduced, businesses often need additional integrations, connectors and synchronisation processes to ensure information flows correctly between them.

These integrations may involve:

• Automated data synchronisation
• Third-party connectors
• Export and import processes
• Manual reporting tasks

This work often remains invisible until something fails. When integrations stop working, or when key employees who manage these processes leave the organisation, business-critical reporting and workflows can be affected.

As a result, some organisations find themselves maintaining increasingly complex webs of integrations simply to answer what should be straightforward business questions.

What Is Changing and What Isn’t

This does not mean that all software products are becoming obsolete.

The point is not that software is dead. Rather, certain categories of software are becoming easier to replace.

Single-purpose tools that solve a narrow business problem are often the most vulnerable, particularly when similar functionality can be created using existing business platforms.

Meanwhile, broader ecosystems such as Microsoft 365 continue to grow in importance because they provide a foundation on which organisations can build and extend solutions rather than simply consume them.

The conversation is shifting from buying more tools to making better use of existing platforms.

From Renting Software to Building Solutions

One of the most significant changes organisations are considering is the shift from renting software to building software.

Rather than allocating budget to ongoing licence fees for multiple specialist platforms, businesses are increasingly exploring how they can invest in creating bespoke applications that reflect their own processes and requirements.

This approach can be particularly effective for:

• Project management solutions
• Customer relationship management (CRM) systems
• Lead management processes
• Internal workflow applications
• Operational tracking and reporting tools

Instead of adapting business processes to match the limitations of a software package, organisations can create solutions designed around the way they already work.

Example: Power Apps as an Alternative

A practical example of this approach is Microsoft Power Apps.

Organisations are using model-driven applications built within Power Apps to manage activities such as lead generation, sales processes and project delivery.

These applications can include:

• Custom data fields and tables
• Business process flows
• Workflow automation
• Resource allocation tracking
• Task management
• Outlook and calendar integration
• Communications and collaboration functionality

Because these solutions can be tailored specifically to organisational requirements, businesses are often able to reduce their reliance on expensive third-party subscriptions while gaining greater flexibility and control.

Looking Ahead

Most organisations have at least some subscriptions that duplicate functionality already available elsewhere in their technology estate.

That does not mean every SaaS platform should be replaced immediately. In many cases, a phased approach is the most practical strategy.

Businesses can review existing subscriptions, identify areas of duplication, and gradually replace selected tools with solutions built on platforms they already own.

Over time, this can help reduce software costs while improving business processes and creating solutions that are more closely aligned with organisational requirements.

Conclusion

The key question is no longer simply which software to buy.

For many organisations, the more important question is whether they should continue renting functionality through recurring subscriptions or invest in building solutions that they control themselves.

As Microsoft 365, Power Platform and AI capabilities continue to evolve, more businesses are finding opportunities to reduce reliance on specialist SaaS products and create solutions that are better suited to their needs.

If you’d like to discuss your application landscape and explore whether a build-versus-buy approach could benefit your organisation, get in touch with the team at Valto.

Thank you for watching.