Zoho cofounder Sridhar Vembu has stepped into the spotlight once again, this time responding firmly to Y Combinator President Garry Tan’s claim that the rise of vibe coding could shake the foundations of traditional SaaS businesses. Tan suggested that AI driven app building tools will soon enable anyone to create custom software quickly, reducing the need for established platforms like Zoho. According to him, companies may prefer building their own lightweight solutions instead of paying for bundled software packages.
Vembu, however, disagrees strongly and has argued that vibe coding is nowhere close to replacing enterprise grade products. He highlighted that Zoho is witnessing rapid customer growth and that no genuine vibe coded alternatives exist for mission critical tools such as email, accounting, productivity suites or messaging platforms. He believes these categories require deep engineering, security, compliance and stability, something quick AI generated apps cannot deliver yet.
Another point Vembu emphasised is the long term cost of what appears to be fast development. He warned that vibe coded tools may pile up technical debt far more quickly than conventional software, eventually becoming brittle and unreliable under real world usage. While AI can speed up development, he said it cannot magically erase the complex layers involved in proper coding.
Instead of joining the vibe coding rush, Zoho is investing in strengthening its own AI enhanced development stack. Vembu noted that the company is building a blend of compiler technologies and AI that helps developers work faster without compromising the rigorous engineering needed for secure and scalable applications.
The exchange between Vembu and Tan reflects a growing debate in the tech community. On one side stands the excitement of rapid AI powered development that promises to democratise software creation. On the other stands the argument that enterprise software is built on years of refinement that cannot be replaced overnight. While AI tools are already making coding more accessible, Vembu believes that robust SaaS platforms will continue to thrive because customers still value reliability, longevity and proven performance.
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