Some IT departments are feeling the strain amid recent economic downturns. 2023 has already seen a disproportionately high degree of layoffs in the tech sector. As a result, there aren’t always enough software developers available to meet the demand. This has led some organizations to turn to new ways to upkeep morale and reduce burnout, retain productivity and do more with less.
Low-code development is one solution that could help tackle rising application backlogs. Low-code/no-code platforms use reusable components to help engineers (and citizen developers) construct functional applications and internal workflows. Many teams report they are using low-code to rapidly deliver new features. A recent study from Microsoft found that 89% of CIOs and IT pros said low-code is effective in increasing efficiency.
Microsoft Power Platform recently sponsored a study that surveyed 2,000 IT CIOs and IT professionals on their use of low-code platforms. According to the report, users benefitted from these platforms by modernizing legacy IT, improving efficiency and reducing costs, among other areas. Below, I’ll review some key takeaways from the Microsoft study and compare them with other perspectives.
The Benefits of Low-Code Development
The report showcased a slew of benefits from the use of low-code platforms. One is modernizing legacy applications—87% of CIOs and IT pros said low-code is very useful in helping their organizations modernize legacy applications. Solving the technical debt issue is top-of-mind, since 69% of IT leaders identified technical debt as a threat to innovation. Another key benefit is efficiency. The study found that developer efficiency with these platforms significantly increases over time, averaging 62% over three years.
Low-code platforms are also a prime area to insert artificial intelligence and more automation into the software development process. Microsoft, which recently announced it was integrating ChatGPT into its Power Platform, reported that 87% of CIOs and IT pros said increased AI and automation embedded into low-code platforms would help them better use the full set of capabilities.
Finally, a significant benefit is cost reduction. A full 87% of those surveyed said low-code is effective in helping reduce costs. These solutions could accelerate the completion of the software backlog, increasing efficiency and lowering the resources required to deliver. This comes at a time when cost optimization is critical to avoid rising cloud fees.
How Are Companies Working With Low-Code?
So, how are development teams actually working with these platforms? One common use case is improving data processes by streamlining integrations and having a centralized repository. In fact, 86% of CIOs and IT pros said low-code helped their organizations generate more accurate insights from their data. These data-driven insights have been used to help better serve customers and internal stakeholders.
For example, ÖBB, an Austrian rail operator, leveraged a low-code platform to synchronize data and automate customer service inquiries with virtual agents. Other case studies report using Microsoft Power Platform for migration from legacy systems and reduced document processing lead time.
Looking outside of the Microsoft report, however, not everyone is fully on board the low-code bandwagon. For example, the CEO of StackOverflow has expressed reservations because low-code platforms ultimately have a ceiling. With low-code, there’s a limit on customization, making it a less-than-ideal fit for experienced developers or technology-specific companies. Organizations must also mitigate the potential security repercussions of allowing business users to create applications, requiring new governance and policies. Low-code platform users may also fall victim to vendor lock-in and uneasy data retrieval—underscoring the need for open platforms with programmatic access.
The Advantages of Low-Code Platforms
Low-code solutions are a viable option to help clear items from the IT backlog, automate tedious processes and free up engineers to focus on more pressing matters. Some low-code/no-code tools also help democratize application development to those with different skill sets, thus bringing in new users to the development arena. And interest in low-code continues to pick up—Markets and Markets forecast a compound annual growth rate (CAGR) in the low-code development industry platform market of 28.1% to reach $45.5 billion by 2025.
Naturally, the findings and case studies in this particular report are a bit skewed toward the benefits of using the Microsoft Power Platform. Nonetheless, it serves as an indication of the various advantages of low-code platforms. For more insights, you can read the full report here on the Microsoft Power Platform blog.
