PR NewsWire | 10:43 AM
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SYDNEY, Oct. 7, 2025 /PRNewswire/ — Global management consultancy firm Argon & Co is predicting traditional software-as-a-Service (SaaS) models could be obsolete by as early as 2028, in a new white paper exploring the future of enterprise and Industry 5.0.
The white paper, "IRIS. Enlightened AI with real ROI", predicts that Australian enterprises will rapidly abandon traditional SaaS models as AI application agility, customisation capabilities, and economic pressures force a fundamental reinvention of the entire software category.
According to the paper, Argon & Co’s predictions suggest the following trajectory:
- Right now AI engagement options (the "experience layer") 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 6 months, we’ll see a proliferation of new AI applications working together far more seamlessly through an emerging category called "AI Platforms". These platforms could be "cloud-based" (hosted on cloud infrastructure like AWS, Azure, Google Cloud), "on-premise" (deployed within an organisation’s own infrastructure) or "AI-as-a-Service (AIaaS)" (AI services connected via APIs and pre-built components).
- 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, giving us tools we’ve never had before.
- In 36 months, software-as-a-service revenues will be so sharply damaged by new AI innovation that the entire industry will need to completely reinvent itself, or become obsolete.
The paper also explores the multiple competing AI forces creating market confusion right now , and resulting in a form of "industry paralysis", in which many enterprises are currently stuck at AI proof of concept or strategy setting, instead of implementation.
As an antidote to the current 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 (ROI) 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, enabling enterprises to remain on schedule and realise project benefits far beyond expectations.
As the entire world races to adapt to the new AI-based reality, decision-making around enterprise software in particular will become increasingly critical, according to Argon & Co.
Paul Eastwood, Managing Partner at Argon & Co said: "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.
"Traditional SaaS models based on punitive licensing regimes and vendor lock-in will simply not be able to compete against unlimited customisation, true data ownership, and ROI that makes traditional software investments look like highway robbery.
"And by turning a 6-month, million-dollar project deliverable into a 9-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. 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."
Aiden Heke, Managing Director of IRIS, said: "Throughout my career, I’ve watched brilliant executives become paralysed 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.
"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.
"In my new role, I look forward to helping these executives cut through the noise and find solutions that deliver true transformational change. We are living in very exciting times because AI can actually deliver immediate business value without the traditional risks of technology adoption. So I hope to turn AI skeptics into AI success stories, creating a competitive edge for clients in a global market where AI adoption will separate the leaders from the laggards."
Argon & Co (Argon&Co) is a global management consultancy that specialises in operations strategy and transformation. Its expertise spans supply chain planning, manufacturing, logistics, procurement, finance, and shared services, working together with clients to transform their businesses and generate real change.
Its people are engaging to work with and trusted by clients to get the job done.
Argon & Co has 17 offices across Europe, Australasia, America, Asia and the Middle East.