February 8, 2026 · 11 min read

business AI software

2025 Vendor Audit: Every Tool We're Keeping, Killing, and Replacing with AI

Thank you Andrew and the Third South team for reviewing

There is too much noise right now about which SaaS companies AI will disrupt. We have inherited, tested, and cut dozens of vendors. We have messy credit card statements filled with legacy applications, developer tools, and infrastructure costs. I went through every single line item, from the sub-$5 utilities to the massive cloud bills. Who will survive 2026?

When you look at the survivors, a pattern emerges. We aren't replacing Expert Infrastructure (AWS, Postmark) or Expert Judgment (Lawyers, Accountants). They are safe.

We are killing middleware.

Middleware companies exist to make technical chores, setting up a server, scraping a page, monitoring uptime, slightly easier. They sell an "easy button." But AI has made those hard things trivial enough that the premium no longer makes sense. In 2026, we are paying for assets, not wrappers:


1. AI Replaceables

These tools are the walking dead to me. AI has lowered our barrier to entry so significantly that paying a subscription is now a tax on laziness. We can build internal versions more suited for us using pennies.

Dance of Death


2. Death's Doorstep

These vendors are effectively dead to us. The service has degraded, they are over-engineered, or they simply annoy us. We are just waiting for the contract to expire or the migration script to finish.


3. Cruft

Digital debris. Legacy accounts, forgotten subscriptions, and one-time purchases that clutter the P&L. We aren't replacing these with AI. We are straight cancelling.

*Note: Colin said "I didn't even know that we had this cruft". Bloat bloat bloat, all of which will be deleted.

Durer's


4. Unshakeable Cores

The bedrock. The AI revolution has zero impact on these because they sell commodities, not convenience. They are too cheap, too reliable, or too fundamental to replace.


5. Irreplaceable Experts

High-judgment partners. We use AI to assist them, but we won't use AI to replace them.

Myles Marino

Partner at Third South Capital, where we cultivate, build, and buy software.

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