Global management consultancy Argon & Co projects traditional SaaS obsolete by 2028

Argon & Co, a global management consultancy specializing in operations strategy and transformation, has released a white paper projecting that traditional Software-as-a-Service models could be obsolete by as early as 2028. The firm’s expertise spans supply chain planning, manufacturing, logistics, procurement, finance, and shared services, working with clients across Europe, Australasia, America, Asia and the Middle East.

The white paper, “IRIS. Enlightened AI with real ROI,” predicts that Australian enterprises will rapidly abandon traditional SaaS models as AI application agility, customization capabilities, and economic pressures force a fundamental reinvention of the entire software category. The paper also explores multiple competing AI forces creating market confusion and resulting in “industry paralysis,” in which many enterprises are currently stuck at AI proof of concept or strategy setting instead of implementation.

Strategy and operations consulting firm charts AI timeline

According to Argon & Co’s predictions, the trajectory unfolds as follows:

Right now, AI engagement options are evolving rapidly as users can increasingly tailor how they receive AI insights, for instance receiving a company’s financial reports in the form of an audio explanation, as a series of interactive charts, or even explained via dynamic chatbot.

In the next six months, new AI applications will work together far more seamlessly through an emerging category called “AI Platforms.” These platforms could be cloud-based, on-premise, or AI-as-a-Service.

In 12 months, businesses will start to notice that consumers are capturing more benefits from AI than they are, leading companies to explore how to better connect personal use of AI with their own operations.

In 18 months, the lines between human and machine interaction will have blurred to the point where we reach Industry 5.0, where humans and AI work side-by-side in more natural, integrated ways.

In 24 months, intellectual “superpowers,” such as Artificial General and Super Intelligence, could begin tackling major global challenges in health, the economy, and society.

In 36 months, SaaS revenues will be so sharply damaged by new AI innovation that the entire industry will need to completely reinvent itself, or become obsolete.

Managing Partner Paul Eastwood stated: “We’re witnessing the beginning of the end for traditional SaaS, to the point where committing to a multi-year SaaS platform rollout could potentially be career-ending for an executive. We’ve given SaaS until 2028 before it’s phased out, but that may actually be generous given the speed at which companies are racing to capture the AI opportunity.”

Data and AI integration launch in Asia-Pacific

As an antidote to current industry paralysis, Argon & Co has launched AI and data for operations consultancy “IRIS” in APAC, with the paper’s author Aiden Heke appointed as Managing Director. IRIS delivers the functionality promises of SaaS platforms but with the exponential potential of AI, at a fraction of the cost, without the punitive licensing regimes of legacy providers, and currently with a targeted 10x return on investment for clients.

It can strategically inform a company’s AI strategy, implement multiple AI and automation solutions already in production with clients, and manage this new category of AI software through a proprietary AI enterprise platform.

Among IRIS’ case studies, one major real estate developer reduced HR effort by 70% through AI assistants, while a global drinks brand cut ERP processing effort by 70% and accelerated content creation 5x with GenAI tools. These examples demonstrate how what would once have taken months and millions to deliver can now be achieved in weeks at a fraction of the cost.

Eastwood added: “Traditional SaaS models based on punitive licensing regimes and vendor lock-in will simply not be able to compete against unlimited customization, true data ownership, and ROI that makes traditional software investments look like highway robbery. And by turning a six-month, million-dollar project deliverable into a nine-week sprint at a fraction of the cost, we are already showing that AI transformation isn’t the future, this is happening right now. The smart money is already moving away from traditional software licensing, and Australian enterprises that don’t wake up to this reality will be left behind.”

Heke commented: “Throughout my career, I’ve watched brilliant executives become paralyzed by choice when it comes to decision-making around data management and enterprise software. But never before have I seen such paralysis and stranded pilot programs as we are seeing now when it comes to the complexity of AI options.”

He also noted: “Australian productivity also continues to lag other developing countries, and this is a millstone around our collective economic necks. Invention is not our issue, the technology is here. What we need is to urgently yet securely plot our way to new levels of productivity through the adoption of technologies like AI.”

Eastwood concluded: “So the question isn’t whether SaaS will die. The question is whether you’re willing to cling to that sinking ship and go down with it, or reinvent yourself and sail.”