SaaS is DEAD!

It’s Halloween, so let’s talk about something truly terrifying in construction tech: SaaS. Software as a Service has been the undead monster roaming our industry, racking up VC dollars and promising to be the next unicorn. Will this trend continue? I’m calling it: SaaS is dead—or at least, it’s limping into the grave.

The Rise (and Fall?) of SaaS in Construction

Over the past few years, SaaS companies have flooded the construction market, each one claiming to solve every problem under the sun. VC funds are there, unicorn dreams are strong, and the race is on to “transform” the industry. But here’s the thing: we’ve missed the point. This tech obsession has led us down the rabbit hole of tech-for-tech’s-sake. And construction just doesn’t work that way.

It’s All About Outcomes

Let’s face it: construction budgets are tight. The majority of funds go to the core of the project—the materials, labor, and management. Technology budgets barely scrape 2% of a project’s total cost, so SaaS tools are scrambling for a slice of a very small pie. They’re chasing tiny, incremental improvements in productivity that barely move the needle. So, what do we get? Flashy tech that often doesn’t make a noticeable difference in how projects actually come together.

As Patric Hellermann put it, it’s not just about “Software as a Service.” It should be Outcome as a Service. If these tech companies could shift focus to deliver better, more efficient, cost-effective results, the whole game would change. And this doesn’t just apply to SaaS; it’s relevant for modular solutions and all construction innovations. Imagine if these companies harnessed their software to deliver the outcome directly—embedding solutions in workflows and processes to help clients achieve faster, more cost-effective builds, not just offering a standalone product.

Why Compete for Crumbs When You Can Bake the Cake?

Scrapping over a sliver of a project’s tech budget? That’s a losing game. Instead, take ownership of the outcome. If your tech can deliver the project better, faster, and more efficiently, show it by actually delivering. Don’t promise a magical “digital transformation”—back it up with results. If your technology truly provides value, embed it deeply in the building process. Demonstrate your worth by not just selling another tool but by transforming processes from the inside out and delivering real results.

My Own SaaS Horror Story

I’ve been around this space long enough to know where SaaS goes wrong. As someone with firsthand experience building and selling technology solutions, I can tell you: selling tech for the sake of tech is a hollow promise. Early on, I got ahead of myself, focusing on selling the technology instead of doubling down on the results I could achieve and the project value I could take. And I’ve worked with AI companies where we pitched “magic” tech solutions that sounded great but, in practice, we were pitching a marginal difference—one that could be far more valuable if owned and developed internally.

Instead of obsessing over productizing software solutions, companies should focus on embedding those solutions within their processes and workflows. This shifts the focus from selling standalone products to integrating technology into what matters most—the outcome. The real product isn’t the software; it’s the efficiency, speed, and quality of the result.

My Prediction: The SaaS Acquisition Wave

Though I’m calling SaaS “dead,” it’s not buried just yet. In the short to medium term, I expect general contractors and service providers will start acquiring these SaaS point solutions. They’ll see the value in integrating tech more deeply into their own operations, proving my point. By turning these tools into real, tangible outcomes, they’ll take more market share from the tech companies that couldn’t bridge the gap between software and service themselves.

Let’s Be Honest—No One Cares About the Tech

At the end of the day, no one really cares about your tech. They care about the results. They want to see projects completed faster, cheaper, and better. Stop chasing valuations and funding rounds. Instead, focus on building a business that’s financially sustainable and delivers real, measurable value to the people on the ground.

Doubling Down on Value

Here’s the takeaway: if you’re actually providing value, double down on it. SaaS can’t survive on empty promises or theoretical efficiencies. Show the market that your tech works by embedding it in the building process and taking on the responsibility for the outcome. That’s where the real value lies, and the companies that do this will thrive, while the others will fade away.

So, SaaS isn’t completely dead, but it’s on life support. Those who can shift their focus from tech to real outcomes will survive and thrive. The rest? They’ll join the ranks of failed tech startups that tried to change construction without understanding what the industry actually needs.

Follow @Imago if you’re ready to focus on building outcomes, not just selling software.