Is SaaS Dead? monday.com CEO on Vibe Coding, Agents and the Future of Enterprise Software

What's This About?

Harry Stebbings grabbed Eran Zinman for the latest episode of his 20VC podcast – Co-Founder and Co-CEO of monday.com. The topic: the six biggest threats to monday.com. And frankly: to the entire SaaS industry.

monday.com currently has $1.3 billion ARR – yet is valued at just around $3.9 billion on the stock market. That's a decline of over 60% since the IPO. This hits monday.com harder than almost any other publicly traded SaaS company.

The question looming over everything: Is SaaS as we know it done?

Threat #1: Vibe Coding – Will Everyone Build Their Own Software Soon?

Vibe Coding is everywhere. The idea: Instead of buying expensive SaaS licenses, companies simply build their own tools – using natural language, with AI as the developer.

Zinman's answer: No, it's not that simple.

His argument is pragmatic: Clicking together a UI is one thing. Maintaining, evolving, and scaling software long-term – that's something entirely different. Most companies massively underestimate what's behind a "simple tool": permissions, integrations, updates, security, compliance.

And investors? They apparently view Vibe Coding just as calmly. It's currently not a primary factor moving software stocks.

Our take: Vibe Coding changes who can build software – but it doesn't replace the platforms on which companies operate. Tools like monday.com don't just solve a UI problem – they orchestrate processes, data, and people. That's a different level.

Threat #2: Will OpenAI and Anthropic Take Over the Application Layer?

The fear of many SaaS companies: What if the big LLM providers don't just deliver models, but build the applications on top as well?

Zinman draws a clever comparison here: AWS. When Amazon Web Services launched, many thought Amazon would dominate the entire software ecosystem. The opposite happened: A boom of companies emerged that built on top of AWS.

His thesis: The same will happen with LLM providers. OpenAI and Anthropic will remain infrastructure players – not application-layer monopolists. The enterprise market is too complex, too fragmented, and too relationship-intensive for any single player to cover everything.

Enterprise sales needs a guided approach – not just product-led growth. That's something the LLM providers can't do (yet).

Threat #3: Will Agents Turn monday.com Into a Worthless Database?

This is the most fascinating question – and the hardest to answer.

The scenario: AI agents will handle work autonomously in the future. They don't need a pretty UI, no boards, no dashboards. They access data directly. monday.com, Salesforce & Co. get degraded to mere databases – without any value in the application layer.

Zinman admits this scenario is the most complex. But he sees it more nuancedly:

• Agents need structure. Even the best AI agents need clean data, defined workflows, and clear rules. That's exactly what a Work OS delivers.
• Humans aren't going away. Even in an agentic world, teams need transparency, dashboards, and control over what agents do.
• monday.com is building agents itself. With monday Agents, AI Credits, and the new hybrid pricing model, the company is actively positioning itself in the agent world.

The Counter-Strategy: Why monday.com Is Hiring More, Not Less

While half the tech industry is cutting headcount, monday.com is growing its workforce by 15%. Zinman's logic: When the market is transforming, you need to invest – not save.

The strategy behind it:

• AI is used internally to become more efficient – not to replace jobs
• New products (monday CRM, monday dev, monday service) are broadening the platform
• $1.5 billion cash in the bank – enough runway for offensive bets
• Hybrid pricing with AI Credits – a new monetization model beyond the classic seat license

What Most People Miss: Enterprise AI Adoption Is Slow

A point Zinman particularly emphasizes: Reality in enterprises looks different from Twitter. Enterprise AI adoption is significantly slower than the public debate suggests.

Large companies have compliance requirements, procurement cycles, and change management hurdles. An AI agent that works autonomously sounds great – but in a regulated environment, it needs governance, audit trails, and approval processes.

That's exactly the space where platforms like monday.com can prove their value.

The Uncomfortable Truth: Google AI Overview Destroyed 10% of Customer Acquisition

A detail that raises eyebrows: Zinman openly admits that Google AI Overview (the AI-generated answers in Google Search) has destroyed roughly 10% of customer acquisition for monday.com.

That's a massive impact – and a problem shared by many SaaS companies that rely on content marketing and SEO. When Google gives the answer directly in search results, nobody clicks through to the website anymore.

Zinman's Conclusion: The SaaS Apocalypse Is Real – But Also an Opportunity

Perhaps the boldest statement from the interview:

"The amount that companies will spend on software will increase by 100x."

Zinman doesn't see the current phase as an ending, but as a fundamental transformation. Yes, SaaS in its old form is under pressure. Seat-based pricing is being questioned. But at the same time, the need for software is rising dramatically – because AI agents enable new workflows that were previously unthinkable.

The winners will be the platforms that adapt: from pure tools to orchestration layers, from seat pricing to value-based pricing, from manual workflows to AI-driven processes.

What This Means for monday.com Users

monday.com is under pressure – no question. But the interview also shows: The company has a clear plan. AI Credits, agents, multi-product strategy, and $1.5B cash aren't a bad starting position.

For teams using monday.com, this means concretely:

1. Actively use AI features: monday Sidekick, agents, and automations are no longer nice-to-have
2. Structure processes cleanly: The better your data and workflows in monday.com, the more value the platform creates – including for AI agents
3. Keep an eye on the pricing model: AI Credits could become the next big topic in license planning

Want to know how to optimally position monday.com for the AI future? We'll help you – from process consulting to AI setup.

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