---
title: "20 business software switching statistics for 2027"
description: "Explore 20 business software switching statistics for 2027, covering SaaS costs, AI adoption, software consolidation, and custom app development."
image: "https://hercules.app/blog/business-software-switching-statistics/opengraph-image"
---

# 20 business software switching statistics for 2027

Explore 20 business software switching statistics for 2027, covering SaaS costs, AI adoption, software consolidation, and custom app development.

- **Author:** [Grant Gurvis](https://hercules.app/blog/authors/grant)
- **Tag:** Company
- **Published:** 2026-11-10
- **Last updated:** 2026-11-10
- **URL:** https://hercules.app/blog/business-software-switching-statistics

Businesses are reconsidering their software as costs rise and existing tools fall short. In October 2026, [9.3% of enterprise application](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) citations indicated plans to replace software, up from 7.6% in January 2024. Zylo also found that [79% of IT leaders](https://zylo.com/blog/saas-statistics) faced price increases at their latest software-as-a-service (SaaS) renewal.

[AI-powered no-code platforms](https://hercules.app/docs) like Hercules offer another way to meet business software needs. Instead of relying on multiple subscriptions, businesses can create custom CRMs, ERPs, internal tools, and customer portals by describing what they need. Commercial use requires a[ Business or Enterprise plan](https://hercules.app/pricing), and additional usage charges may apply.

## **Key takeaways**

- **Software replacement interest is growing:** Replacement citations reached [9.3% in October 2026](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals), while 45 of 53 tracked enterprise software products had weaker Net Scores than in October 2024.
- **Software costs are rising:** Zylo found that [79% of IT leaders](https://zylo.com/blog/saas-statistics) faced SaaS renewal price increases, while 78% reported unexpected usage-based or AI-related charges.
- **Cost and ROI drive switching decisions:** Among respondents replacing platform suites, [58.4% cited cost](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) and ROI as reasons.
- **Businesses want fewer disconnected tools:** Futurum found that[ 47.3% of software consolidators](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) planned to replace individual applications with broader platforms.
- **AI is changing software budgets:** Spending on AI-native SaaS [grew 108% year over year](https://zylo.com/blog/saas-statistics). Among organizations shifting IT funds to cover AI cost overruns, 36.4% cut non-AI software licenses.
- **Custom software offers an alternative:** Hercules customers report [replacing four vendors](https://hercules.app/customers/kingdom-texas), avoiding a [$100,000 developer quote](https://hercules.app/customers/global-connectors), and building complete business systems. Results depend on each company's needs.

### **1. Software replacement citations reached 9.3% in October 2026**

Enterprise application replacement intentions [reached 9.3%](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) in October 2026, up from 7.6% in January 2024. This was the highest share recorded across 12 Futurum surveys during that period. The findings show growing interest in replacing existing software, although they measure spending intentions rather than completed switches.

### **2. 45 of 53 enterprise software products had lower Net Scores in October 2026**

Enterprise software spending intentions weakened across most tracked products. Futurum found that [45 of 53 products](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) had lower Net Scores in October 2026 than in October 2024. Only six improved, while two remained unchanged. Net Score measures planned adoption and spending increases minus planned reductions and replacements. The decline shows weaker spending momentum across established products.

### **3. The median enterprise software Net Score fell from 11.1 to 6**

The median enterprise software Net Score [fell from 11.1 to 6](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) between October 2024 and October 2026. Futurum measured the middle score among 53 consistently tracked applications. The decline shows that businesses were less likely to increase spending on these products. However, it does not show how many companies completed a software switch.

### **4. Enterprise software products with negative Net Scores increased from 11 to 20**

The number of enterprise software products with negative Net Scores [rose from 11 to 20](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) between October 2024 and October 2026. A negative score means more citations indicate reduced spending or replacement than new adoption or increased spending. This does not mean every customer plans to cancel, but it shows weaker spending intentions across more products.

### **5. 28 of 53 enterprise software products had replacement rates of at least 10%**

In October 2026, [28 of 53 products](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) had replacement citation rates of at least 10%, compared with 24 products in October 2024. More than half of Futurum's tracked enterprise applications reached this level. The figures reflect planned replacements, not completed migrations, and suggest more businesses are considering alternatives to their current software.

### **6. 79% of IT leaders faced SaaS renewal price increases**

SaaS renewal costs increased for [79% of IT leaders](https://zylo.com/blog/saas-statistics) surveyed in Zylo's 2026 SaaS Management Index. These increases occurred during the previous 12 months. Higher subscription prices can strain budgets even when businesses do not add new applications. Reviewing software usage and comparing renewal terms can help businesses identify unnecessary costs.

### **7. Total SaaS spending increased 8% year over year**

Total SaaS spending [grew 8%](https://zylo.com/blog/saas-statistics) year over year, according to Zylo's 2026 report, even though the number of applications remained relatively stable. This shows that software costs can rise without businesses adding new tools. Renewal increases, usage charges, and subscription upgrades can all contribute. Businesses should review unused licenses and overlapping applications when managing these expenses.

### **8. 78% of IT leaders reported unexpected usage-based or AI-related charges**

Unexpected usage-based and AI-related charges affected [78% of IT leaders](https://zylo.com/blog/saas-statistics) surveyed by Zylo in the previous year. These costs can arise when businesses exceed usage limits or use AI features with separate charges. Reviewing billing terms, included allowances, and feature costs can help businesses avoid unexpected expenses.

### **9. 77% of IT leaders faced unexpected costs after signing SaaS contracts**

Zylo found that [77% of IT leaders](https://zylo.com/blog/saas-statistics) experienced unexpected costs after signing SaaS contracts. These expenses can make budgeting harder, especially after businesses have invested in implementation and employee training. Reviewing support fees, additional licenses, usage charges, and contract terms helps businesses understand the full cost before committing.

### **10. 61% of organizations cut projects because of unplanned SaaS costs**

Unexpected SaaS cost increases forced [61% of organizations](https://zylo.com/blog/saas-statistics) in Zylo's 2026 research to cut projects or initiatives. When software expenses exceed budgets, businesses have less money for other priorities. This shows how unpredictable pricing can affect operations beyond IT. Monitoring subscriptions and removing overlapping tools can help control costs.

### **11. 58.4% of platform-suite replacement respondents cited cost and ROI**

Cost and return on investment were the leading reasons for replacing platform suites in Futurum's October 2026 survey. Among 137 respondents, [58.4% cited cost and ROI](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals). Respondents could choose multiple reasons. Businesses considering a switch should compare software costs with benefits such as time saved, less manual work, and improved performance.

### **12. 14.6% of platform-suite replacement respondents cited feature breadth**

Limited functionality also influenced software replacement decisions. Futurum found that [14.6% of respondents](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) replacing platform suites cited feature breadth as a reason. Feature breadth means the range of functions a product offers. Businesses may consider alternatives when existing software lacks essential features or requires additional subscriptions to support their workflows.

### **13. 47.3% of software consolidators planned to replace individual tools with broader platforms**

Nearly half of software consolidators planned to replace individual applications with broader platforms. Futurum's second-half 2026 survey found that [47.3% of consolidators](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) planned this approach. Combining tools can reduce overlapping subscriptions and duplicate data entry. However, these were planned changes, and businesses still need to check whether a replacement platform supports their workflows.

### **14. About two in three explained CRM moves involved broader business changes**

About [two in three CRM moves](https://www.alium.io/research/why-companies-switch-crm) with a stated reason involved broader events, according to Alium's research through October 2026. These included software consolidation, combining multiple CRMs, and organizational changes. The study examined documented migrations and committed replacements, not overall CRM switching rates. It suggests businesses often replace CRMs as part of wider technology decisions.

### **15. About 32% of long-tail software replacement respondents cited stack alignment**

Compatibility with existing systems influenced about [32% of respondents](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) replacing selected long-tail software products in Futurum's research. Stack alignment means how well software works with a company's existing tools and systems. Poor compatibility can create integration problems and extra manual work. The finding covers selected replacement respondents rather than all software migrations.

### **16. Spending on AI-native SaaS increased 108% year over year**

Spending on AI-native SaaS applications [increased 108%](https://zylo.com/blog/saas-statistics) year over year, according to Zylo's 2026 report. These tools support tasks such as automation, content creation, customer interactions, and data analysis. The growth shows rising investment in AI software, although higher spending does not necessarily mean equal gains in productivity or cost savings.

### **17. 65.7% of organizations building AI applications used broader IT budgets**

Futurum's September 2026 survey found that [65.7% of organizations](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) developing AI applications internally funded them through broader IT budgets. Respondents could report multiple funding sources. This means AI development increasingly competes with existing software and infrastructure expenses. Businesses need to account for development, testing, hosting, and maintenance when planning AI investments.

### **18. 36.4% of organizations reallocating IT budgets for AI overruns cut non-AI licenses**

Futurum found that [36.4% of organizations](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) that moved funds within IT budgets to cover AI spending overruns reduced non-AI software licenses. The figure applies only to organizations reallocating IT funds, not all businesses. It shows how AI spending can affect existing software budgets. Businesses should check whether license cuts would disrupt essential workflows.

### **19. Application development tools grew 81% in SaaS portfolios**

Application development was the second-fastest-growing SaaS category by application count in 2025. Zylo reported an [81% increase](https://zylo.com/blog/saas-statistics) in development applications within managed software portfolios. This measures tools used for application development, not the number of custom applications completed. The growth shows greater investment in software development capabilities.

### **20. Application development SaaS spending increased 176% year over year**

Application development recorded the highest spending growth among Zylo's tracked SaaS categories, with a [176% annual increase](https://zylo.com/blog/saas-statistics). The category also grew 81% in application count. These figures show rising investment in development tools but do not measure completed projects or financial returns. Businesses should compare platform costs with hosting, integrations, testing, and ongoing maintenance.

## **How Hercules helps businesses replace existing software**

AI-powered no-code platforms like [Hercules](https://hercules.app/) let businesses build custom applications by describing what they need. Instead of managing separate tools for every task, you can create connected systems for customer management, operations, finance, and other workflows.

Hercules supports CRMs, ERPs, customer portals, and internal applications. Its built-in database, user login controls, backend functions, and hosting reduce the need to set up separate services.

Hercules helps businesses address five common software challenges:

- **Reduce development costs:** Businesses can build suitable applications without hiring a traditional development team. [MMA Plumbing](https://hercules.app/customers/mma-plumbing) received agency quotes of at least €250,000 for its operating system before building it on Hercules. Actual savings depend on development, testing, and ongoing costs.
- **Launch software faster:** Businesses can create and update applications through conversation. [Imjomat](https://hercules.app/customers/imjomat) replaced a $36,000 developer contract that had failed to deliver in 12 months. [Petony Transportes](https://hercules.app/customers/petony-transportes) launched its ERP in two months instead of the eight months an agency had quoted.
- **Reduce manual work:** Custom applications can bring related tasks into one system. [Helixon Law](https://hercules.app/customers/helixon-law) built more than 40 applications for legal document preparation, proposals, and internal workflows. The firm reported a 30% improvement in client close rates.
- **Replace disconnected software:** Businesses can combine workflows that previously required several vendors. [Kingdom Construction](https://hercules.app/customers/kingdom-texas) replaced four software vendors with a Hercules-built operations platform. The company reports $30,000 in annual software savings and hundreds of hours saved each month.
- **Manage applications in one place:** Hercules provides [database management](https://hercules.app/docs/apps/database), authentication, backend functions, hosting, and [250+ app integrations](https://hercules.app/changelog/app-integrations), including Notion, Linear, and Slack. App Integrations is in early access. The platform also supports [mobile app publishing](https://hercules.app/docs/apps/mobile/publish-app-store), subject to app-store requirements. Features and usage allowances vary by plan.

Hercules customers report measurable results. Petony Transportes built its ERP in two months and reported [20% revenue growth](https://hercules.app/customers/petony-transportes). MMA Plumbing developed a [46-module operating system](https://hercules.app/customers/mma-plumbing) and launched a 4,000-page SEO website in two days.

[Global Connectors](https://hercules.app/customers/global-connectors) built an ERP in one month, avoided a $100,000 developer quote, and reached a reported $55,000 annual recurring revenue run rate. Kingdom Construction also reports [$30,000 in yearly savings](https://hercules.app/customers/kingdom-texas) after replacing four vendors.

These are individual customer results, not guaranteed outcomes. Commercial use of Hercules requires a Business or Enterprise plan. When comparing software options, include [subscription pricing](https://hercules.app/pricing), AI Credits, Cloud Credits, integrations, testing, and ongoing maintenance.

## Frequently asked questions

### What are the main reasons businesses switch software?

Cost and return on investment are leading reasons businesses replace software. Futurum's October 2026 research found that [58.4% of replacement respondents](https://futurumgroup.com/insights/enterprise-software-spending-lags-behind-stated-platform-consolidation-goals) cited cost and ROI when replacing platform suites. Other reasons include missing features, integration problems, and changing business needs. Companies also consolidate software to reduce overlapping subscriptions and disconnected workflows. Before switching, compare the cost and capabilities of your current software with the full expense of a replacement.

### How do AI app builders like Hercules differ from traditional software development and SaaS?

AI app builders let businesses create software by describing what they need instead of writing code. Platforms like [Hercules](https://hercules.app/) provide application interfaces, databases, backend functions, and hosting in one environment. Traditional development usually requires developers to build and maintain these components. Standard SaaS products provide predefined features and workflows, while AI app builders let businesses create applications around their own processes. Complex applications may still need technical review, testing, integrations, and maintenance.

### How much can businesses save by switching to an AI-powered no-code platform?

Savings depend on software requirements, existing subscription costs, and ongoing usage. [Global Connectors](https://hercules.app/customers/global-connectors) avoided a $100,000 developer quote by building an ERP in one month. [Kingdom Construction](https://hercules.app/customers/kingdom-texas) reports $30,000 in annual savings after replacing four software vendors. These are individual customer outcomes, not average savings. Hercules requires a Business or Enterprise plan for commercial applications. Include AI Credits, Cloud Credits, third-party services, testing, and maintenance when comparing costs.

### How does Hercules support growing business software needs?

Hercules Cloud provides managed infrastructure that lets businesses expand applications without setting up their own servers. It includes databases, backend functions, authentication, hosting, and version control. Customers use these features for substantial business operations. [MMA Plumbing](https://hercules.app/customers/mma-plumbing) serves approximately 4,000 clients annually, while [ATOM Technology](https://hercules.app/customers/atom-technology) reports processing $1 million in monthly deposits across six casino brands. Actual performance and scalability depend on application design, usage, and configuration.

### Can businesses migrate existing data and connect current systems when switching software?

Yes. Hercules supports [CSV data imports](https://hercules.app/docs/apps/database), allowing businesses to move structured records into custom applications. It also offers [250+ app integrations](https://hercules.app/changelog/app-integrations), including Notion, Linear, and Slack, through a feature currently in early access. Successful migration depends on data quality, application requirements, and available integrations. Before replacing existing software, check compatibility with essential systems, test imported data, and review user permissions. Moving data in stages can help identify problems before a full switch.

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