For many years companies have spent internal resources on maintaining their monolithic applications in the IT department. The characteristics of these applications are high complexity, tightly coupled functions, large codebases and so on. If you needed to change something in a business application, it took rewriting in one or more of the components. The whole process of managing monolithic architecture has been – and still is – time-consuming and troublesome.
Then cloud happened. And with cloud came speed and agility in internal software development teams. Standardised components were shopped right of the shelf as Software-as-a-Service solutions. Cloud has been a genuine revolution for developers, companies and customers alike. The drawback is that when you buy a software standard it is developed for average needs. So, going from a customised enterprise solution to a cloud ditto will probably mean that you need to adjust your business processes to fit the cloud standard. Which in many cases can have a positive effect on your business, but nevertheless can make enterprises feel like they are compromising and maybe even loosing something.
Low-code/no-code development is growing
Now – due to everchanging customer needs, supply chain disruptions and evolving regulation – it seems as if the pendulum within software development is swinging back towards tailored systems supporting differentiation. But this time functionality does not come in the moulded form of monolithic architecture but in modular shapes of flexible cloud-based “Lego bricks” that can be combined in all sorts of ways.
Low-code/no-code development platforms are building blocks that support organisations in automating tailored workflows such as dashboards, capture-and-submit information and drop-down menus. The low-code/no-code software development process can be performed by people from the company’s main areas of business – those who understand the key processes you want to automate, which then again frees up time for software developers to focus on higher-value issues in core systems.
According to Gartner, the low-code/no-code platform market grew by an average of more than $1 billion per year from 2019 to 2022, and it is forecasted to grow almost 20% in 2023 to $10 billion. Gartner predicts that by 2026 developers outside the formal IT department will account for at least 80% of the low-code user base.
The new software paradigm is picking up steam because it makes it quick and easy to create business applications. Companies do not have to re-invent the wheel but can use capabilities in the cloud to develop and deploy customised functionality for their specific purposes.
Don’t over-invest in advanced tooling
This leads me to ask if the growing low-code/no-code platform market will finally move cloud outside the IT department?
Up until now, leveraging cloud capabilities has mainly been an issue for software developers. IT departments are using cloud technology to increase productivity, so they can answer business demands and build and maintain digital products faster. Which has been a tremendous success and continue to be an area of investment for most companies.
But maybe businesses are ready to take the next step and make cloud technology more than cool tools in the IT department? With the rise of low-code/no-code platforms and modular software development we have seen the large core systems of the past “shrink”. All the components and functionality that were once a fixed part of enterprise applications are beginning to peel off. That makes it even more compelling to look at the flexible Legos in the cloud as the foundation of a new strategic approach to software development in a strengthened partnership between business units and the IT organisation.
Instead of over-burdening your skilled software developers with customer building of off the shelf low-code/no-code capabilities their time can be re-invested into the core systems and legacy modernization. A new mindset should be anchored in the business integrating these cloud capabilities in their strategic decision making. Want to play in a new market? Look at what the cloud has to offer as the starting point of your business strategy. Want to meet customers across new channels? Explore the standardised solutions in the cloud. Want to facilitate a new ecosystem of services with you in the centre – what Legos can you find in the cloud to support that ambition?
Use cloud solutions to meet compliance requirements
Take compliance if you need a good example on how to use cloud capabilities to meet growing demands. Heavily regulated industries like banking and finance have experienced a tsunami of new requirements from national and international legislation – and the trend will probably continue in the coming years.
Compliance is all about handling data and making sure they have the right label to collect, manage and store them accordingly. Without a complete overview of internal and external data streams it is not possible to perform the task and increase efficiency across business units. That kind of process management can be built in the cloud using flexible standard components. Not by asking specialised (and expensive) coders to do the job, but by putting those who are closest to the process in charge.
Low-code/no-code platforms bring all the advantages of tailored IT without the traditional demand on scarce software development capabilities. I hope that can be the spark that turns technical possibilities in the cloud into pure business strategy execution.
