What's Happening?
A recent survey of 817 Retool customers reveals a growing trend among enterprises to replace Software as a Service (SaaS) tools with custom-built solutions. The survey found that 35% of respondents have already replaced at least one SaaS tool, with 78%
planning to build more custom solutions in 2026. This shift is driven by the reduced cost and time required to develop custom software, prompting companies to question whether to buy or build solutions. The trend is particularly evident in workflows that are not well-served by existing SaaS offerings, such as approval flows and dashboards. However, much of this development occurs outside IT oversight, raising concerns about governance and security.
Why It's Important?
The move towards custom-built solutions reflects a significant change in how enterprises approach software development and deployment. By building their own tools, companies can tailor solutions to their specific needs, potentially increasing efficiency and reducing costs. However, the lack of IT oversight in these developments poses risks, including security vulnerabilities and fragmented systems. This trend underscores the need for robust governance frameworks to manage the proliferation of custom applications and ensure they integrate seamlessly with existing systems. Enterprises that successfully navigate these challenges may gain a competitive edge by leveraging technology to optimize operations.
What's Next?
As more companies adopt custom-built solutions, the demand for governance and oversight will likely increase. Enterprises may need to invest in tools and processes to manage the development and deployment of these applications effectively. Additionally, the trend could drive innovation in the software industry, as vendors seek to offer more flexible and customizable solutions. Stakeholders, including IT departments and software providers, will need to adapt to this evolving landscape to meet the changing needs of businesses and maintain security and compliance standards.
