Financial considerations aside, one advantage of having in-house engineers is that you can get custom features built on-demand without having to be blocked on the roadmap of a SaaS company juggling feature requests from multiple customers...
The code they write is highly domain-specific, implementation speed is not the bottleneck, and their payroll for developers is nothing compared to the rest of the business.
AI would just increase risk for no reward.
This is what a CEO is supposed to do. I wonder if CEOs are the ones OK with their data being used and sent to large corps like MS, Oracle, etc.
Many larger enterprises do both – buy multiple SaaS products, and then have an engineering team to integrate all those SaaS products together by calling their APIs, and build custom apps on the side for more bespoke requirements.
To give a real world example: the Australian government has all these complex APIs and file formats defined to integrate with enterprises for various purposes (educational institutions submitting statistics, medical records and billing, taxation, anti-money laundering for banks, etc). You can't just vibe code a client for them – the amount of testing and validation you have to do with your implementation is huge–and if you get it wrong, you are sending the government wrong data, which is a massive legal risk. And then, for some of them, the government won't let you even talk to the API unless you get your product certified through a compliance process which costs $$$. Or, you could just buy some off-the-shelf product which has already implemented all of that, and focus your internal engineering efforts on other stuff. And consider this is just one country, and dozens of other countries worldwide do the same thing in slightly different ways. But big SaaS vendors are used to doing all that, they'll have modules for dealing with umpteen different countries' specific regulations and associated government APIs/file formats, and they'll keep them updated since they are forever changing due to new regulations and government policies. And big vendors will often skip some of the smaller countries, but then you'll get local vendors who cover them instead.
I think I saw it asserted that its easier for a new company, which definitely makes sense as you don't carry along all the baggage.