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SaaS security
Adaptive Access Technologies advanced technologies AI Advancements ai agents AI Models AI productivity AI technology Cyber Security LLMs saaS SaaS security

AI and the Rise of Service-as-a-Service: Why Products Are Becoming Invisible

 

The software world is undergoing a fundamental shift. Thanks to AI, product development has become faster, easier, and more scalable than ever before. Tools like Cursor and Lovable—along with countless “co-pilot” clones—have turned coding into prompt engineering, dramatically reducing development time and enhancing productivity. 

This boom has naturally caught the attention of venture capitalists. Funding for software companies hit $80 billion in Q1 2025, with investors eager to back niche SaaS solutions that follow the familiar playbook: identify a pain point, build a narrow tool, and scale aggressively. Y Combinator’s recent cohort was full of “Cursor for X” startups, reflecting the prevailing appetite for micro-products. 

But beneath this surge of point solutions lies a deeper transformation: the shift from product-led growth to outcome-driven service delivery. This evolution isn’t just about branding—it’s a structural redefinition of how software creates and delivers value. Historically, the SaaS revolution gave rise to subscription-based models, but the tools themselves remained hands-on. For example, when Adobe moved Creative Suite to the cloud, the billing changed—not the user experience. Users still needed to operate the software. SaaS, in that sense, was product-heavy and service-light. 

Now, AI is dissolving the product layer itself. The software is still there, but it’s receding into the background. The real value lies in what it does, not how it’s used. Glide co-founder Gautam Ajjarapu captures this perfectly: “The product gets us in the door, but what keeps us there is delivering results.” Take Glide’s AI for banks. It began as a tool to streamline onboarding but quickly evolved into something more transformative. Banks now rely on Glide to improve retention, automate workflows, and enhance customer outcomes. 

The interface is still a product, but the substance is service. The same trend is visible across leading AI startups. Zendesk markets “automated customer service,” where AI handles tickets end-to-end. Amplitude’s AI agents now generate product insights and implement changes. These offerings blur the line between tool and outcome—more service than software. This shift is grounded in economic logic. Services account for over 70% of U.S. GDP, and Nobel laureate Bengt Holmström’s contract theory helps explain why: businesses ultimately want results, not just tools. 

They don’t want a CRM—they want more sales. They don’t want analytics—they want better decisions. With agentic AI, it’s now possible to deliver on that promise. Instead of selling a dashboard, companies can sell growth. Instead of building an LMS, they offer complete onboarding services powered by AI agents. This evolution is especially relevant in sectors like healthcare. Corti’s CEO Andreas Cleve emphasizes that doctors don’t want more interfaces—they want more time. AI that saves time becomes invisible, and its value lies in what it enables, not how it looks. 

The implication is clear: software is becoming outcome-first. Users care less about tools and more about what those tools accomplish. Many companies—Glean, ElevenLabs, Corpora—are already moving toward this model, delivering answers, brand voices, or research synthesis rather than just access. This isn’t the death of the product—it’s its natural evolution. The best AI companies are becoming “services in a product wrapper,” where software is the delivery mechanism, but the value lies in what gets done. 

For builders, the question is no longer how to scale a product. It’s how to scale outcomes. The companies that succeed in this new era will be those that understand: users don’t want features—they want results. Call it what you want—AI-as-a-service, agentic delivery, or outcome-led software. But the trend is unmistakable. Service-as-a-Service isn’t just the next step for SaaS. It may be the future of software itself.
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SaaS security
1Password Manager Businesses Privacy SaaS security

1Password Acquires Trelica to Strengthen SaaS Management and Security

 


1Password, the renowned password management platform, has announced its largest acquisition to date: Trelica, a UK-based SaaS (Software-as-a-Service) management company. While the financial details remain undisclosed, this strategic move aims to significantly enhance 1Password’s ability to help businesses better manage and secure their growing portfolio of applications.

In today’s rapidly evolving digital landscape, organizations are increasingly adopting numerous SaaS tools to streamline operations. However, this surge in digital adoption often leads to "SaaS sprawl," where companies lose oversight of active software tools, and "shadow IT," where employees use unauthorized apps without IT supervision. Both issues heighten security vulnerabilities and inflate operational costs.

1Password's Extended Access Management (EAM) platform already focuses on managing access to devices and applications. With Trelica’s advanced SaaS management capabilities, 1Password will be better equipped to tackle these growing challenges by offering a more comprehensive security solution.

What Trelica Brings to 1Password

Founded in 2018, Trelica specializes in simplifying SaaS application management. Its tools empower IT teams to streamline software oversight and bolster security. Key functionalities include:
  • Access Control: Automates granting and revoking employee access to apps during onboarding and offboarding, ensuring seamless transitions.
  • Shadow IT Detection: Identifies unauthorized or unmonitored apps in use, reducing potential security risks.
  • License Optimization: Monitors and manages unused licenses to minimize software costs.
  • Permission Oversight: Tracks user permissions when employees change roles to prevent over-permissioning.
By automating these processes, Trelica helps organizations save time, cut costs, and mitigate risks associated with unmanaged software use.

Integrating Trelica’s tools into 1Password’s platform will empower businesses to regain control over unauthorized applications, reclaim unused licenses, and enforce stronger security policies. This proactive approach ensures that software usage remains compliant and secure.

Jeff Shiner, CEO of 1Password, emphasized that while tools like single sign-on and mobile device management solve some issues, they don’t address all access management challenges. Trelica’s solution effectively bridges these gaps by streamlining user provisioning and license management, offering a more holistic security framework.

Trelica’s platform already integrates with over 300 widely used applications, including industry leaders like Google, Microsoft, Zoom, Salesforce, and Adobe. This wide compatibility allows businesses to centralize SaaS management, improving both productivity and security.

The acquisition positions 1Password as a leader in access and SaaS management, offering enterprises a unified solution to navigate the complexities of the digital age. As businesses increasingly depend on SaaS tools, maintaining security, efficiency, and organization becomes more critical than ever.

1Password’s acquisition of Trelica marks a significant step toward redefining SaaS security and management. By combining Trelica’s automation and oversight tools with 1Password’s robust security platform, businesses can expect a safer, more efficient digital environment. This partnership not only safeguards organizations but also paves the way for smarter, streamlined SaaS operations in a fast-paced digital world.
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zero-trust solutions
AI governance Cybersecurity Threats GenAI SaaS security Technology zero-trust solutions

GenAI Presents a Fresh Challenge for SaaS Security Teams

The software industry witnessed a pivotal moment with the introduction of Open AI's ChatGPT in November 2022, sparking a race dubbed the GenAI race. This event spurred SaaS vendors into a frenzy to enhance their tools with generative AI-driven productivity features.

GenAI tools serve a multitude of purposes, simplifying software development for developers, aiding sales teams in crafting emails, assisting marketers in creating low-cost unique content, and facilitating brainstorming sessions for teams and creatives.

Notable recent launches in the GenAI space include Microsoft 365 Copilot, GitHub Copilot, and Salesforce Einstein GPT, all of which are paid enhancements, indicating the eagerness of SaaS providers to capitalize on the GenAI trend. Google is also gearing up to launch its SGE (Search Generative Experience) platform, offering premium AI-generated summaries instead of conventional website listings.

The rapid integration of AI capabilities into SaaS applications suggests that it won't be long before AI becomes a standard feature in such tools.

However, alongside these advancements come new risks and challenges for users. The widespread adoption of GenAI applications in workplaces is raising concerns about exposure to cybersecurity threats.

GenAI operates by training models to generate data similar to the original based on user-provided information. This exposes organizations to risks such as IP leakage, exposure of sensitive customer data, and the potential for cybercriminals to use deepfakes for phishing scams and identity theft.

These concerns, coupled with the need to comply with regulations, have led to a backlash against GenAI applications, especially in industries handling confidential data. Some organizations have even banned the use of GenAI tools altogether.

Despite these bans, organizations struggle to control the use of GenAI applications effectively, as they often enter the workplace without proper oversight or approval.

In response to these challenges, the US government is urging organizations to implement better governance around AI usage. This includes appointing Chief AI Officers to oversee AI technologies and ensure responsible usage.

With the rise of GenAI applications, organizations need to reassess their security measures. Traditional perimeter protection strategies are proving inadequate against modern threats, which target vulnerabilities within organizations.

To regain control and mitigate risks associated with GenAI apps, organizations can adopt advanced zero-trust solutions like SSPM (SaaS Security Posture Management). These solutions provide visibility into AI-enabled apps and assess their security posture to prevent, detect, and respond to threats effectively.

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