So do you think SaaS is dead? Is Claude Cowork the nail in the coffin?

Updated on 12th February 2026 by Fraser Davidson

I don’t think SaaS is dead. But I do think SaaS leaders are going to need to start thinking very differently. History tells us that new interfaces don’t kill industries, they reshape them.

Radio didn’t kill newspapers. TV didn’t kill radio. Streaming didn’t kill TV. But each shift changed user behaviour. A large proportion of users migrated. Incumbents adapted, or disappeared.

SaaS didn’t kill traditional software overnight either. But over time, users moved to cloud-based tools because they were easier, more flexible and more connected. We’re now at the beginning of another interface shift. And this one may be more profound than the move to cloud.

The Upcoming SaaS Challenge

The change I see coming is this, a large proportion of SaaS users will reject or at least minimise the traditional UI. Instead, they will operate SaaS platforms “headlessly.”

In other words, they will use AI/LLMs (like Claude Cowork and others) to interface with SaaS products, trigger workflows, extract insights, update records and run processes without ever logging into the front-end UI. The SaaS application doesn’t disappear, instead it becomes infrastructure.

Therefore, SaaS still plays a critical role:

• Structuring data
• Enforcing process
• Securing access
• Maintaining compliance
• Creating domain-specific logic

However, the interface layer changes and the future SaaS stack becomes:

• Back-end: Structured data, domain logic, permissions, compliance
• Interface layer: A mix of traditional UI + AI-driven conversational or agent-based interaction

For many users, the AI becomes the primary operating system for work.

• “Update that opportunity.”
• “Generate a renewal forecast.”
• “Create onboarding tasks for this new client.”
• “Pull last quarter’s churn drivers.”

A dashboard is no longer required.

The SaaS Dilemma

This creates a strategic dilemma for SaaS companies because if the UI is no longer the primary point of engagement, what becomes your differentiation? If AI agents are calling your API directly, how do you control usage?

If LLMs sit between users and your platform, who owns the customer relationship? And if multiple external AI systems are interacting with your API, how do you maintain security, tenancy isolation and governance?

Historically, SaaS companies optimised:

• UI/UX
• Feature depth
• Workflow design
• Native integrations

Now, they must also optimise for:

• API completeness and consistency
• Machine-readability
• Structured action schemas
• Monitoring of AI-driven activity
• Secure mediation between external agents and internal systems

The API is no longer “for integrations” rather it becomes the primary interface and that means it needs to evolve.

The Rise of Headless SaaS

We are moving toward a world where users increasingly delegate execution to AI agents, and AI tools orchestrate across multiple SaaS systems. Now workflows span platforms without human UI interaction and SaaS apps operate as composable back-end engines.

This is not the death of SaaS, instead it’s the decoupling of SaaS from its UI. The companies that thrive will recognise this early and architect for it intentionally.

Where does Cyclr fit in this?

At Cyclr, we believe this shift is already underway and is why we’ve developed our MCP PaaS. It is a managed control plane that sits between your SaaS API and an ecosystem of customers using disparate LLMs and AI agents.

Think of it as a governance and orchestration layer for the AI-driven SaaS era, because the real risk isn’t AI calling your API. Instead the risk is uncontrolled AI calling your API.

Why a Control Layer Matters

When LLMs begin interfacing directly with SaaS platforms, new challenges emerge:

• How do you authenticate and authorise AI agents per tenant?
• How do you prevent data leakage across customers?
• How do you monitor and audit AI-driven actions?
• How do you rate-limit, throttle or segment AI traffic?
• How do you adapt as AI models change, evolve or fragment?

Every SaaS company could attempt to build this internally, but that means:

• Designing and maintaining a mediation layer
• Managing tenant-aware AI access
• Building monitoring and logging frameworks
• Handling versioning as both APIs and LLM schemas evolve

This isn’t just an integration problem. It’s an architectural one.

Cyclr’s MCP PaaS: Infrastructure for the AI-Native SaaS Future

Our MCP PaaS provides:

• A secure mediation layer between SaaS APIs and AI agents
• Tenant-aware isolation and governance
• Monitoring and control over data flows
• Rapid creation and management of MCPs
• Reduced friction in enabling AI-driven integrations

It allows SaaS vendors to:

• Embrace AI-native usage
• Maintain control
• Protect customer data
• Avoid chaotic API exposure
• Move quickly without re-architecting their core platform

And crucially:

It lets SaaS companies get to the forefront of this shift in days, not quarters.

The Strategic Bet

We’ll be honest, this is a bleeding edge. The ecosystem is still forming and standards are still evolving. AI agents are still maturing, but the directional signal is clear and users will increasingly:

• Expect conversational access
• Delegate execution
• Operate across tools without logging into each one

SaaS companies can either wait until AI traffic overwhelms their API strategy or proactively design for headless, AI-mediated usage.

We’ve chosen our bet. SaaS isn’t dead, but SaaS without an AI-ready control plane may struggle. The front-end won’t disappear, but it won’t be the only front door anymore. The companies that recognise this early will define the next era of SaaS. And we believe Cyclr’s MCP PaaS is part of that foundation.