56% of the companies surveyed by KPMG say they lack the budget to keep up with AI-driven technological developments. Affordable low-code solutions may be the answer.
Companies today must constantly innovate and integrate emerging technologies into their operations to keep up with rapid advancements. This relentless loop of innovation comes at a high cost. Quick and continuous innovations require substantial resources, including skilled developers who can bring the vision to life, strategic considerations, and, most importantly, financial capital.
According to a KPMG survey, financial constraints are a major roadblock to innovation, with eight out of 10 companies struggling to catch up to AI-driven technological developments. 56% of the companies surveyed say they lack the budget to keep up with such changes.
A new wave of emerging low-code solutions may be the answer to these troubles. Low-code solutions make swift and efficient innovations possible at a fraction of the cost while delivering a high return on investment (ROI) through agile production, scalable development, and the ability to hire minimally skilled (citizen) developers.
It’s no surprise that companies face mounting pressure to assimilate competitively priced low-code solutions into their processes, minus the big demands that high-cost software requires.
This article explores the demand companies face to integrate economical and high-ROI low-code solutions and why freemium models may be the answer to finding a balance between the two.
The Hunt for Affordable Low-Code, High-ROI Solutions
Businesses are fast realizing the immense agility and scalability of low-code development platforms that allow them to quickly create and test proofs of concept before committing to full-scale development. A Gartner survey estimates that low-code development will account for over 70% of application development activities. This represents a considerable increase from 25% in 2020.
What are the actual motivations for this dramatic jump in the demand for low-code solutions? One of them is the paucity of time, according to a report by McKinsey. The report indicates at low-code solutions can help businesses save up to 90% in development time compared to standard coding techniques.
However, one of the most important factors is affordability. A report commissioned by Mendix highlights that cost is the most important concern for more than half of the companies while vetting a new low-code platform. Stability and viability play a smaller role, with only 31% of respondents citing their importance in the innovation lifecycle.
The report also highlighted that nearly 40% of non-technical C-suite leaders have a different opinion. They believe low-code is too expensive.
However, tech teams understand the bigger picture surrounding the demand for low-code. They comprehend that while this solution may appear to be costly initially, it has long-term benefits. It offers a high long-term ROI due to efficient software operations and improved workflows that shorten and speed up the development cycle.
79% of companies agree that low-code reduces operational costs, helping save money in the long run. 45% find that low code helps cut costs and resources to build applications.
A study commissioned by OutSystems found that companies incurred fewer costs to maintain applications developed and deployed on its low-code platform because there was little to no developer involvement. Project timelines were also shorter, leading to faster product launches and incremental cost savings of $6.7 million.
Here are some more compelling statistics that highlight the growing enthusiasm among companies to embrace affordable, low-code platforms for innovation:
- Companies save money on hiring expensive IT developers by using low-code tools. They generated nearly $4.4 million in business value over three years through its high-value applications.
- 41% of businesses have saved money by adopting active citizen development initiatives that allow employees without technical coding expertise to design and deploy low-code applications. 20% of those who haven’t are already planning similar initiatives, according to a report by Gartner.
- More than half (60%) of all custom apps are being built outside the IT department in companies, with 30% created by employees without technical development skills.
This demonstrates how the low-code revolution is gaining momentum and becoming a mainstream element across global companies, especially due to its cost-saving capabilities. The high ROI factor is evident as well, as businesses can skip protracted software development cycles and fast-track the delivery of new updates and features.
However, this does not imply that companies are cheapening the software development process. They’re still seeking long-term value from their low-code tools. However, not all low-code tools are created equal. Companies must still invest in the right one to balance low cost and high ROI.
How Freemium Models Can Help Bridge the Gap Between Low Cost and High Value
The tightening of business budgets has led tech teams to seek a balanced solution for the low-cost, high-value conundrum: platforms offering freemium models. Freemium models give companies more flexibility by allowing them to develop and test their applications for free—so they can ensure they’re investing in the right platform before incurring any costs.
Development tools such as Alpha Transform and Alpha Anywhere are leading the way in offering such models. Their simple try-before-you-buy approach—without an upfront financial investment--takes the risk off of expensive trial-and-error. This way, businesses can make strategic decisions about whether a low-code solution meets their needs.
Here are the key benefits of using freemium low-code models:
- Extended development time: Companies can continue building their apps without the pressure to pay.
- No testing fees: Businesses are free to explore the platform’s features to see if they fit their innovation needs.
- Flexible pricing: Businesses can scale easily and maximize their ROI by paying for the platform only when they’re ready to deploy.
Experiment, build, and test your apps today with Alpha Software’s freemium low-code platform: Alpha Anywhere Community Edition.
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