Is SaaS rent still the best model for SMBs in the age of AI built software?

Over the last years, SaaS became the default way SMBs run their businesses.

CRMs, project tools, internal dashboards, admin systems. Everything rented, everything per seat.

But AI has quietly changed the economics.

With modern AI powered coding and what many call vibe coding, it’s now possible to build custom internal tools faster and cheaper than paying SaaS subscriptions indefinitely.

Not talking about prototypes or hobby projects.

Talking about real production software that fits one business extremely well and is fully owned.

This raises an honest question for SMBs and builders:

When workflows are clear and stable, does renting SaaS still make sense?

Or does ownership become the more rational choice?

I’m curious how others here see this shift:

Where does SaaS still clearly win?

Where does it start to break down for smaller teams?

Have you seen custom internal tools outperform SaaS in practice?

Would love to hear real experiences and counterpoints.