Consultants' GuidesConsultants' Guides
Blog/The SaaS Displacement Calculator: Quantifying the Reset
ProductJanuary 15, 2025

The SaaS Displacement Calculator: Quantifying the Reset

I built an interactive tool that shows companies exactly how much they could save by replacing legacy SaaS with AI-powered alternatives.

The SaaS Displacement Calculator: Quantifying the Reset
Microsoft Tech:Power BIAzureCopilot StudioPower Platform

After sharing my views on "The SaaSpocalypse," the most common response was: "Great thesis, but what does this actually mean for my company?" So I built a calculator.

The Problem

Every company knows they are over-licensed on SaaS. Nobody knows by how much. The SaaS Displacement Calculator on saasreset.com takes your current SaaS stack and models the savings from AI-powered alternatives.

How It Works

The calculator evaluates three displacement patterns:

1. Full Replacement

SaaS tools where an AI agent or Power Platform solution can fully replace the product. Example: a $50K/year project management tool replaced by a Copilot Studio agent integrated with Microsoft Planner.

2. Seat Reduction

Tools where AI reduces the number of seats needed. Example: a CRM where AI handles 60% of data entry, reducing the required license count from 200 to 80.

3. Tier Downgrade

Tools where AI supplements premium features, allowing a downgrade to a cheaper tier. Example: an analytics platform where Power BI with Microsoft Fabric replaces the need for the enterprise tier.

The Microsoft Connection

The displacement targets map directly to Microsoft's ecosystem:

  • CRM seats → Copilot Studio + Dynamics 365 (or just Copilot for simpler use cases)
  • BI tools → Power BI + Microsoft Fabric
  • Workflow automation → Power Automate
  • Internal communications tools → Microsoft Teams + Copilot
  • Project management → Microsoft Planner + Copilot

Compression, Not Just Replacement

The real opportunity is not swapping one vendor for another. It is compression — reducing the number of platforms entirely by rebuilding the smaller functions they served as lightweight agents or automations.

Most mid-market companies accumulate SaaS tools organically. A team signs up for a project tracker. Another team buys a scheduling tool. Someone in finance adds an expense platform. Over time you end up paying for dozens of overlapping products, each doing one narrow thing.

The compression approach asks: what if you rebuilt those narrow functions as agents? A Power Automate flow that handles expense approvals. A Copilot Studio agent that manages project status updates through Teams. A simple dashboard in Power BI that replaces an entire analytics subscription.

None of these are enterprise-scale engineering projects. They are weekend builds that eliminate monthly invoices.

The SaaS Reset

This is the thesis behind saasreset.com — not that SaaS is dead, but that the default of buying a platform for every function is over. The economics have shifted. Building small, purpose-built agents on top of the platforms you already pay for (Microsoft 365, Azure) is now cheaper, faster, and more maintainable than managing another vendor relationship.

What makes this possible now is agentic coding — writing business logic rather than CRUD applications. Instead of building full platforms with databases, user management, and UI, you build focused agents that encode the business rules directly. An agent that knows your approval thresholds, your escalation paths, your compliance requirements. It does not need a dashboard because it operates inside the tools your team already uses.

These agents can be deployed in a protective manner — scoped to specific functions, monitored for drift, and iterable without the overhead of a full software release cycle. When the business rule changes, you update the agent. You do not file a ticket with a vendor and wait for the next quarterly release.

The companies that figure this out first will have a meaningful cost advantage. The ones that do not will keep paying the headcount tax.

SaaSCalculatorCost SavingsTool