Rackspace Technology Survey Sheds Light on the Shifting Application Build vs. Buy Equation
20 November 2020 - 3:05AM
Rackspace Technology™ (NASDAQ: RXT), a leading end-to-end
multicloud technology solutions company, announced the results of a
new survey, “To Build or To Buy?,” which reveals that while the
ratio of building vs buying applications has not changed, the way
that customers assess whether to build or buy has changed.
Enterprises are consistently weighing the benefits and drawbacks
of building their own solutions in-house or purchasing existing
solutions to fit their individual needs. Over the past decade, this
decision has been heavily driven by the accessibility and ease of
each approach. Consequently, the build/buy equation has fluctuated
back and forth, with organizational preferences leaning toward the
method with the most accessible tools at the moment. The latest
survey by Rackspace Technology takes a closer look at what the
future of compute holds for the build/buy equation.
The key findings from the “To Build or To Buy?” survey by
Rackspace Technology include the following highlights:
- The decision to build applications vs. buy applications
is becoming more strategic — The research reveals that
tech decision makers don’t plan to move strictly away from build
and toward buy (or vice versa), but rather to shift in
strategically choosing when to build and when to buy. For example,
72% of participants prioritize building customized applications for
customer-facing purposes because it creates differentiation. With
hiring and training skilled workers amongst the greatest business
challenges today, it is essential that valuable developer hours be
used to build applications that customers will notice and will
eventually impact revenue. In fact, 67% of respondents agreed that
digital transformation and the need for differentiation is driving
the need to build applications in-house.
- In cases where organizations choose to build, adoption
of low-code/no-code solutions will increase — The high
preference for low-code/no-code solutions appears to continue the
trend of “working smarter” even within the build approach,
democratizing application development and allowing organizations to
leverage user-friendly build tools to bridge the gap in developer
skill sets. When building applications, 72% of participants said
their organization uses low-code/no-code platforms and 86% said
they are satisfied or extremely satisfied with low-code/no-code
developments.
- In cases where organizations choose to buy, SaaS
adoption will increase — SaaS products are rising in favor
as they continue to become more robust in capabilities, highly
customizable and easier to implement. Rackspace Technology’s
research indicates a rise in SaaS as the preferred option when
buying applications to enhance crucial but non-differentiating
areas of business. Of survey respondents, 62% said ease of use and
implementation is the main reason for buying software. Further, 65%
of participants did say that with today’s SaaS advancements and
customizations, it is possible to create differentiation in a pure
SaaS world.
“When it comes to the buy vs build dilemma, rather than one
approach dominating the other, our research and experience tell us
that both methods have immense value if implemented for the right
reasons,” said Jeff DeVerter, Chief Technology Officer – Solutions
at Rackspace Technology. “It’s clear that right now the trend is to
reserve developers and their build time for the highest impact work
while filling in the gaps with purchased technology. We look
forward to continuing to support organizations of all types as they
navigate both sides of this equation.”
Download Rackspace Technology’s “To Build or To Buy?” white
paper here.
About Rackspace Technology
Rackspace Technology is a leading end-to-end multicloud
technology services company. We can design, build and operate our
customers’ cloud environments across all major technology
platforms, irrespective of technology stack or deployment model. We
partner with our customers at every stage of their cloud journey,
enabling them to modernize applications, build new products and
adopt innovative technologies.
Research Methodology
The survey was conducted by Coleman Parkes in September 2020 and
targeted 1,870 CIOs, CTOs, COOs, IT Directors and other senior IT
decision makers in the USA, LATAM, EMEA and APJ markets at
organizations across a range of industries, including: technology,
manufacturing, retail, media, financial services and the public
sector.
Media ContactNatalie SilvaRackspace Corporate
Communicationspublicrelations@rackspace.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/72d48faf-f060-4d90-b96e-5443d4ff60d5
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