The New Software Stack

2026-03-01 · Source: The Business Engineer · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Software Development & Engineering, Emerging Technologies & Innovation · Depth: Advanced, quick

Summary

The enterprise technology landscape is undergoing a fundamental shift from the traditional seven-layer SaaS stack, designed for human interaction, to an "agentic stack" built for machines executing outcomes. This transition represents a structural inversion of value, moving from a "System of Record" architecture, exemplified by platforms like Salesforce and SAP, to a "System of Action." The System of Action is an intelligent orchestration layer where AI agents interpret intent, coordinate across diverse systems, and directly produce outcomes without human intervention. This shift creates a "SaaS Hourglass" effect, concentrating maximum value at the extremes of orchestration and proprietary data, while hollowing out the middle layer of UI-dependent workflow applications.

Key takeaway

For VPs of Engineering and Data evaluating future enterprise architecture, recognize that the "agentic stack" is not an incremental upgrade but a structural inversion. Your strategy should prioritize building or integrating "Systems of Action" that enable autonomous agent coordination and outcome execution, while securing proprietary data assets, as traditional UI-centric workflow applications face significant value erosion.

Key insights

The enterprise stack is shifting from human-centric SaaS to machine-centric agentic systems, inverting value distribution.

Principles

• Value concentrates at orchestration and proprietary data.
• Agentic systems execute outcomes directly.

In practice

• Analyze technology's connection to value proposition.
• Assess business model's link to distribution.
• Reconcile short-term survival with long-term vision.

Topics

• AI Agents
• Agentic Architecture
• System of Action
• SaaS Value Chain
• Enterprise Transformation

Best for: Investor, Entrepreneur, VP of Engineering/Data, Director of AI/ML, CTO, AI Product Manager

Related on AIssential

• The System of Action — Value capture in enterprise software is shifting from data storage to agentic intent interpretation and action coordination.
• The Great Platform Reckoning: Will A System Of Record Save SaaS? — AI agents are dismantling traditional software moats, forcing a re-evaluation of tech stacks as strategic risk.
• The Era of AI Agents | Aaron Levie on The a16z Show — AI agent diffusion is slower than anticipated due to human algorithmic thinking limitations and enterprise integration challenges.
• SEI Engages IBM to Accelerate Enterprise Transformation Through Agentic AI — Agentic AI and automation can drive enterprise transformation, operational efficiency, and enhanced client experiences.
• The New Agentic Value Chain — The agentic revolution transforms linear SaaS value chains into a "SaaS Hourglass" with concentrated value at orchestration and data layers.
• Sea's View on the Future of Agentic Software Development with Codex — Agentic AI coding tools fundamentally shift software development by enhancing contextual awareness and enabling higher-level cognitive work.

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Business Engineer.