The build vs. buy decision has changed. In 2024, enterprises split their AI solutions roughly evenly between building and purchasing. By 2025, 76% of AI use cases in Menlo Ventures' enterprise research were purchased rather than built internally. For operational software, the decision to build or buy depends on workflow requirements, costs, and long-term maintenance.
AI-powered no-code platforms like Hercules let businesses describe what they need and get working software without hiring developers. For mission-critical applications such as CRMs, ERPs, and operational systems, this approach can reduce costs and speed up delivery while giving businesses software that fits how they actually work. Under the Hercules terms, commercial use, including internal business operations, requires a Business or Enterprise plan.
Key takeaways
- Custom software development is projected to grow: The market is projected to reach $388.76 billion by 2035, a 22.05% compound annual growth rate. Hercules offers an alternative to hiring developers for suitable custom software projects, although subscription, testing, and ongoing usage costs still apply.
- SaaS waste creates build opportunities: According to Zylo's findings, organizations in its 2026 SaaS dataset averaged an estimated $19.8 million in license waste annually. Custom applications can help some businesses consolidate subscriptions, although costs and functionality depend on the application.
- AI is transforming development speed: A 2026 study found that access to an AI coding assistant resulted in 26.08% more completed tasks among developers. Separately, Hercules lets non-technical professionals build applications through conversation without writing code.
- Low-code adoption is mainstream: 37% of surveyed organizations have made low-code central to their development strategy. Hercules represents a no-code approach to building mission-critical systems.
- Hercules reduces development costs and timelines: GlowBall Nation built its online store in five weeks instead of six months, avoiding an estimated $50,000 in developer fees.
1. Custom software market projected to reach $388.76 billion by 2035
The global custom software development market was valued at $53.02 billion in 2025 and is projected to reach $388.76 billion by 2035, representing a 22.05% compound annual growth rate (CAGR) from 2026 to 2035. This growth reflects increasing demand for software built around specific business requirements rather than generic off-the-shelf solutions.
Businesses seeking custom software have traditionally faced two options: hire developers at costs that vary by project scope and complexity, or adapt their operations to fit existing SaaS products. The Hercules no-code platform offers a third path, letting non-technical professionals build the applications their businesses need.
2. Global software development market projected to reach $1.28 trillion by 2032
Mordor Intelligence estimates the software development market at $0.64 trillion in 2026 and projects growth from $0.72 trillion in 2027 to $1.28 trillion by 2032, representing a 12.14% CAGR from 2027 to 2032.
Cloud deployment accounted for a 71.5% market share in 2026, with projected growth of 12.5% annually through 2032. For businesses building applications, cloud-native platforms reduce the infrastructure complexity that traditionally required dedicated technical staff.
3. Enterprise software represents 61% of the custom software market
Enterprise software accounted for 61% of custom software revenue in 2025, with large enterprises also holding the largest revenue share. Businesses build CRM systems (customer relationship management), ERP systems (enterprise resource planning), HR portals, and operational dashboards to meet needs that packaged software cannot address.
Petony Transportes, a Brazilian logistics company with 45 employees and 70 drivers, reports that its Hercules-built ERP contributed to 20% revenue growth and helped it avoid a $230,000 developer quote. Their system handles quotes, load management, and payment workflows that previously required manual re-entry across three separate systems.
4. Low-code platform market projected to reach $376.92 billion by 2034
The global low-code development platform market was valued at $37.39 billion in 2025 and is projected to reach $376.92 billion by 2034, growing at a 29.10% CAGR from 2026 to 2034. Low-code platforms reduce how much code developers must write. No-code platforms like Hercules go further, letting people build complete applications through conversation without writing any code.
In KPMG's 2025 research, 59% of surveyed respondents identified speed and agility as important benefits of AI-powered low-code development. The shift reflects a broader recognition that domain experts who understand the business can help create software tailored to operational needs.
5. Large IT projects averaged 45% cost overruns
A 2012 McKinsey-Oxford study of more than 5,400 IT projects found that large projects, defined as those initially costing more than $15 million, averaged 45% cost overruns and delivered 56% less value than predicted. The same research found that 17% of IT projects experienced problems severe enough to potentially threaten the company's survival.
Traditional software development involves extended requirements gathering, design phases, development sprints, testing cycles, and deployment. Each handoff introduces opportunities for miscommunication. When the person building the software differs from the person who will use it, requirements often get lost in translation.
6. 65.6% of surveyed software firms report scope creep increasing costs by 10–25%
In a 2026 GoodFirms survey, 65.6% of responding software companies reported that scope creep typically increased project costs by 10–25%. Scope creep means changes that expand a project beyond its original requirements. These changes can increase development expenses when additional features or modifications require more work.
Global Connectors, an accounting firm in Côte d'Ivoire, avoided a developer quote of at least $100,000 by building its Compta 360 ERP on Hercules in one month. They then launched it as a SaaS product, reaching an annualized revenue run rate of $55,000 within two months of launch.
7. 65.7% of surveyed software firms estimate medium projects cost $30,000 to $100,000
According to the 2026 GoodFirms survey, 65.7% of responding software companies placed medium-sized projects in the $30,000 to $100,000 cost range. These are surveyed providers' project estimates, not final invoices or a global average. Development costs vary by complexity, scope, location, and project requirements.
With Hercules, changes that would require developer involvement become conversations. Havoc Motorcycles previously waited days or weeks for minor website changes. With Hercules, updates that required outside help now take minutes because the business owner can describe what they need and see results immediately.
8. Organizations estimate 29% of IaaS and PaaS cloud spending is wasted in 2026
Flexera's 2026 State of the Cloud Report found that surveyed organizations estimated 29% of IaaS/PaaS spending was wasted. The research surveyed 753 cloud decision-makers and users worldwide. The figure measures estimated waste, not independently audited cloud costs.
Hercules Cloud provides built-in hosting and infrastructure that scales with application usage. Rather than configuring separate providers for databases, authentication, file storage, and hosting, businesses can build and deploy from a single platform. Ongoing costs depend on included usage allowances and additional Cloud Credits.
9. Organizations use only 54.4% of purchased software licenses
According to Zylo's 2026 SaaS findings, organizations in its SaaS management dataset used an average of 54.4% of purchased software licenses, leaving roughly 46% idle. This underutilization stems from seat-based pricing that charges for potential users rather than actual usage, combined with the difficulty of tracking who actually uses which tools.
When businesses build custom applications, they can focus on the functionality they need rather than maintaining multiple subscriptions. Kingdom Construction, a Texas general contractor, reports saving $30,000 annually after building BuilderSuite Pro on Hercules to replace four separate software vendors.
10. Zylo reports $19.8 million in average annual SaaS license waste
According to Zylo's 2026 findings, organizations in its SaaS management dataset incurred an estimated $19.8 million in license waste annually on average. For businesses with significant unused software spending, even a fraction of this waste represents opportunity cost that could fund custom development or other investments.
The waste comes from multiple sources: duplicate tools across departments, overprovisioned seats, forgotten subscriptions, and features purchased but never implemented. Building consolidated operational systems can reduce tool sprawl while providing functionality tailored to business needs.
11. 76.6% of surveyed IT leaders incurred unexpected costs after SaaS contracts
According to Zylo's survey of IT leaders, 76.6% of respondents reported unexpected costs after signing SaaS contracts. These include implementation fees, integration costs, data migration expenses, training, customization charges, and price increases at renewal.
Helixon Law, a military defense firm with 17 lawyers, built 40+ applications on Hercules in under two months. One of those applications replaced a conference software package that cost approximately $1,500 for 20 users, demonstrating how custom-built tools can reduce reliance on recurring software vendors while providing better-fitting functionality.
12. 60.6% of IT leaders cut projects due to unplanned SaaS cost increases
60.6% of surveyed IT leaders have cut projects because of unplanned SaaS cost increases. When vendor pricing changes or usage exceeds expectations, budgets get reallocated from innovation to maintaining existing subscriptions.
Building applications on platforms with published pricing provides a basis for cost planning. Hercules pricing includes usage allowances that vary by plan. Businesses should check current entitlements, AI Credit costs, Cloud Credit charges, and other ongoing expenses before committing to a build.
13. 85% of surveyed developers regularly use AI tools for coding and development
85% of surveyed developers regularly use AI tools for coding and development, and 62% rely on at least one AI coding assistant, according to JetBrains' 2025 research. This widespread adoption shows how AI tools have become part of many developers' workflows.
For non-technical business professionals, AI-powered no-code platforms offer another approach. Rather than using AI to help write code, platforms like Hercules let users describe what they need in plain language and build working applications without coding.
14. Access to an AI coding assistant increased completed tasks by 26.08% in three experiments
A 2026 study published in Management Science analyzed randomized field experiments involving 4,867 developers at three companies. Developers given access to an AI coding assistant completed 26.08% more tasks on average across the combined experiments, although results varied.
MMA Plumbing, a Netherlands home services company with hundreds of staff, built a 46-module unified operating system on Hercules. Their founder, Rachid Ghazil, also launched a 4,000-page local SEO website in two days rather than the six months previously estimated by development agencies.
15. 76% of enterprise generative AI use cases were purchased in 2025
In 2025, 76% of AI use cases in Menlo Ventures' enterprise research were purchased rather than built internally, up from 53% in 2024. Enterprise AI spend surged to $37 billion in 2025, capturing approximately 6% of the global SaaS market.
This shift toward purchasing reflects AI's complexity and rapid evolution. However, the purchasing pattern for enterprise AI solutions does not establish whether businesses should build or buy their operational software. That decision depends on application requirements, costs, and maintenance needs.
16. 74% of surveyed leaders say advanced generative AI initiatives met or exceeded ROI expectations
A Deloitte survey published in January 2025 found that 74% of respondents said their organization's most advanced generative AI initiative was meeting (43%) or exceeding (31%) return on investment (ROI) expectations. The results reflect the surveyed organizations' most advanced initiatives rather than all generative AI projects.
Hercules AI Gateway connects applications to AI models from OpenAI, Anthropic, and other providers for text generation, image creation, transcription, and chatbot functionality. Businesses building on Hercules can incorporate AI capabilities into their custom applications without configuring separate AI infrastructure. Applicable AI Gateway usage consumes Cloud Credits beyond included allowances.
17. 28% of surveyed low-code users extensively build complex enterprise applications
KPMG's 2025 research found that 28% of low-code users reported very strong use of low-code for developing complex enterprise applications. The findings demonstrate adoption in complex business software development.
No-code platforms have also moved beyond simple prototypes to supporting complex business applications. Hercules focuses specifically on mission-critical applications like CRMs, ERPs, and operational systems that businesses rely on daily.
18. 37% of surveyed organizations have made low-code central to development
A survey of 2,170 IT and business executives conducted in 2024 and published by KPMG in 2025 found that 37% of surveyed organizations had made low-code a central component of their software development strategy. Another 18% reported implementing their first low-code projects.
Imjomat, a Philippines-based data labeling company with 60 staff, turned to Hercules after spending more than $36,000 on developers who had not delivered a suitable system after a year. Using Hercules, Imjomat built a website that its founder says helped increase annual revenue 2.4x. Its separate task management system reportedly saved 2,000 team hours per month.
19. 23% of surveyed low-code users extensively modernize existing applications
In KPMG's 2025 research, 23% of low-code users reported very strong use of low-code for replacing or modernizing existing applications, while another 25% reported strong use.
This approach favors businesses building applications that match their specific workflows. ATOM Technology launched six online casino brands in weeks versus an 18-month prior build with 14 developers and $230,000 in development costs. Their Hercules-built platform reportedly processes $1 million monthly in deposits with 1.5 staff members, compared with four per casino previously.
20. 55% of surveyed low-code users develop data analytics applications
According to KPMG's 2025 research, 55% of low-code users develop data analysis applications with the technology. The finding comes from a survey base of 1,193 IT and business executives using low-code, and shows that businesses use these platforms for data processing and analysis alongside other operational applications.
Low-code and no-code platforms also support workflows beyond analytics. Sold Out, a Latin American record label, reduced song distribution paperwork from five hours to 10 minutes through automated document generation built on Hercules. A major label made an acquisition offer for their internal platform.
How Hercules helps businesses build better software faster
Hercules is an AI-powered no-code platform focused on helping businesses build mission-critical applications without hiring traditional development teams. The platform lets non-technical professionals describe what they need and build and refine working applications through conversation.
- Complete application stack: Hercules includes frontend, backend, and database capabilities, authentication, and deployment, reducing the need to configure separate providers.
- Built-in hosting: Hercules Cloud provides hosting and infrastructure that scales with application usage.
- AI integrations: Hercules AI Gateway enables applications to connect with leading AI models.
Hercules' customer examples represent individual outcomes, not guaranteed savings or delivery times. When evaluating options, include testing, cloud usage, and ongoing iteration in your full cost estimate. Check current Hercules pricing to compare costs. AI Credits cover applicable AI building usage, while Cloud Credits cover applicable live application usage, including AI Gateway usage. Commercial use requires a Business or Enterprise plan.
Frequently asked questions
What are the main factors to consider when deciding to build or buy software?
Key factors include total cost of ownership (not just purchase price), how well the software fits your specific workflows, implementation time, ongoing maintenance burden, and strategic importance. A 2012 McKinsey-Oxford study found large IT projects averaged 45% cost overruns, while Zylo's survey found 76.6% of IT leaders incurred unexpected costs after signing SaaS contracts. Both paths carry financial risks that require careful evaluation.
How do AI-powered no-code platforms impact the build vs. buy decision?
AI-powered no-code platforms can reduce the cost and time required to build custom software, making building viable for more projects. A 2026 study found that access to an AI coding assistant increased completed tasks by 26.08% among developers in three experiments. Separately, platforms like Hercules let non-technical professionals build applications through conversation. This shifts the decision from whether you can afford to build to whether building gives you better-fitting software.
What are the typical cost savings associated with building custom software using a platform like Hercules?
Customer outcomes vary by project. MMA Plumbing avoided an agency quote of at least €250,000, Petony Transportes avoided a $230,000 developer quote, and Kingdom Construction reports saving $30,000 annually on software vendors. These are avoided quotes and reduced subscriptions, not verified net savings after platform costs. Check current Hercules pricing and compare total costs for your specific project.
Can enterprise-level applications like ERPs and CRMs truly be built without traditional coding?
Yes, though outcomes depend on complexity. Petony Transportes built a logistics ERP serving 45 employees, 70 drivers, and 400 monthly loads. MMA Plumbing built a 46-module operating system replacing Exact and Visma. Global Connectors built an accounting ERP meeting SYSCOHADA requirements. These examples demonstrate that complex business applications can be built on Hercules, though each project requires testing and iteration.
What are the risks of choosing an off-the-shelf solution over a custom build?
Off-the-shelf risks include unused software licenses or seats (according to Zylo's 2026 findings, organizations use only 54.4% of purchased licenses), vendor lock-in limiting future options, price increases at renewal, and workflows that do not match how your business actually operates. Zylo reports $19.8 million in average annual SaaS license waste in its dataset. Custom builds carry their own risks around maintenance and technical capability, which no-code platforms can help address.