I watched it happen in the auto industry. You had all these small vendors selling headlights, grills and bumpers. Then someone came along who had bought out some of the little guys and offered the Big 3 a packaged front end of the car. They handled all the engineering post design and had a complete front end of the car that just clipped on.

They were non-union and in a rural area where wages were lower. The price was lower than buying everything individually and the Big 3 saved lots of money on their very high labor costs.

What's to stop people from doing a roll up, buying a bunch of litle SaaS companies and offering a package that is a complete solution? It would be discounted of course like MS Office back in the day which killed off the category leaders like Lotus 123, dBase and WordPerfect.

That is a far more plausible scenario than what this guy proposes.