In the ever-evolving landscape of technology, application development has seen significant shifts in approach, methodology, and purpose. Over the past four decades, we've witnessed a fascinating cycle—from the early days of custom-built applications to the widespread adoption of Commercial Off-The-Shelf (COTS) software, the rise of Software as a Service (SaaS), and now, an emerging trend back towards custom-developed applications.

This journey reflects not just changes in technology but also shifts in business priorities, economic considerations, and the desire for greater control over intellectual property.

As an expert in application development with over 40 years of experience, I've seen firsthand how these trends have evolved. In this article, we will explore the history of application development, the drivers behind the move to COTS and SaaS, and why businesses are now re-embracing custom development.

We will also examine how advancements in AI and automated quality assurance testing have made custom development more viable and attractive than ever before.

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A Brief History of Application Development

The Early Days: Custom-Built Applications

In the early days of computing, most applications were developed from scratch. This was a time when there were no pre-packaged solutions available, and businesses had to rely on their own development teams to create software tailored to their specific needs. This approach, while time-consuming and resource-intensive, allowed companies to build applications that were perfectly aligned with their business processes and goals.

Custom development provided complete control over the functionality and performance of the application. However, it also came with significant challenges, including the need for substantial investment in development resources, longer time-to-market, and the ongoing burden of maintaining and updating the software.

The Rise of COTS: Reducing Development Burden

As computing technology advanced and the software industry matured, Commercial Off-The-Shelf (COTS) applications became increasingly popular. These were pre-built software solutions that could be purchased and implemented with minimal customization. COTS applications offered a way for businesses to quickly adopt new technology without the need for extensive development efforts.

The appeal of COTS was clear: they reduced the time and cost associated with software development, provided reliable and tested solutions, and often came with vendor support. However, the trade-off was a loss of customization and flexibility. Businesses often found themselves constrained by the limitations of the software, requiring workarounds or additional development to meet their unique needs.

SaaS: The Shift to Cloud-Based Solutions

The advent of the internet and cloud computing brought about another significant shift in application development with the rise of Software as a Service (SaaS). SaaS applications are cloud-based solutions offered on a subscription basis, removing the need for businesses to invest in hardware, infrastructure, or extensive IT staff. SaaS providers handled all aspects of software maintenance, updates, and security, allowing businesses to focus on their core activities.

SaaS quickly became popular due to its accessibility, scalability, and lower upfront costs. It allowed businesses to access powerful software tools without the need for significant capital investment. However, as SaaS adoption grew, so did the associated costs. Over time, businesses began to experience "subscription fatigue" as the cumulative cost of multiple SaaS applications began to rival or even exceed the cost of traditional custom-built solutions.

The Future: A Return to Custom Development

Custom Applications: Meeting 100% of Client Needs

In recent years, we have seen a growing trend back toward custom-developed applications. This shift is driven by several factors. First, businesses are increasingly seeking solutions that provide 100% of the functionality they require—something that is often not possible with off-the-shelf or SaaS products. Custom development allows businesses to build software that is perfectly tailored to their needs, offering a level of customization and flexibility that cannot be matched by generic solutions.

Intellectual Property and Control

Another driving factor behind the return to custom development is the desire for control over intellectual property. With custom-built applications, businesses own the software outright, giving them full control over its use, modification, and future development. This contrasts with SaaS, where the software is owned by the provider, and businesses are limited by the terms of the subscription agreement.

Cost Considerations

While SaaS solutions initially appear cost-effective due to their low upfront costs, the long-term expenses can add up quickly. Subscription fees, user licenses, and additional costs for premium features or support can result in significant ongoing expenses. In contrast, custom-developed applications, while requiring a higher initial investment, often result in lower long-term costs, particularly when the business's needs are stable, and the software does not require frequent changes.

Advances in AI and Automated Quality Assurance

Advances in artificial intelligence (AI) and DevOps also facilitate the return to custom development. AI tools can now assist in the development process, reducing the time and effort required to build custom applications. Automated QA testing ensures that software is thoroughly tested and debugged before deployment through continuous release cycles, further accelerating the time to market and reducing the risk of errors.

These advancements have made custom development more accessible to businesses of all sizes, allowing them to benefit from the unique advantages of tailor-made software without the traditional drawbacks of long development cycles and high costs.

Leveraging Modern Web and Cloud Technologies with Agile Development

One of the key advantages of modern custom application development is the ability to leverage the latest web and cloud technologies. By utilizing cutting-edge frameworks, microservices architecture, and cloud-native development, businesses can create scalable, robust, and highly responsive applications that are perfectly aligned with their operational needs. Moreover, these custom applications are often built using Agile development practices, which emphasize iterative progress, continuous feedback, and collaboration. Agile allows development teams to adapt to changing requirements quickly, ensuring that the final product is not only tailored to the client's specifications but also delivered more efficiently and effectively. This combination of advanced technology and Agile methodology has made custom development more attractive than ever, providing businesses with the flexibility and speed needed to stay competitive in today’s fast-paced market.

Cost Considerations: Upfront Investment vs. Long-Term Benefits

While custom application development may require a higher upfront investment compared to adopting off-the-shelf or SaaS solutions, the long-term financial benefits often outweigh these initial costs. By choosing custom development, businesses gain complete ownership of the software and its intellectual property (IP), allowing them to control the roadmap and future development. This ownership means that businesses are not subject to the escalating subscription fees often associated with SaaS products, which can become a significant ongoing expense. Furthermore, owning the IP provides greater flexibility in adapting the software to changing business needs without relying on external vendors. Over time, this control over costs and the ability to tailor the application precisely to the company's requirements can lead to substantial savings and a more predictable financial outlook.

Conclusion and Summary

The cycle of application development has come full circle. From the early days of custom-built solutions to the rise of COTS and SaaS applications, businesses have continuously sought ways to balance cost, functionality, and control. Today, we are witnessing a renewed interest in custom-developed applications as businesses seek to regain control over their software, meet their specific needs, and reduce long-term costs.

Advancements in AI and automated QA testing have made custom development more feasible and efficient, enabling businesses to build applications that not only meet their current needs but also provide the flexibility to adapt to future challenges. As SaaS costs continue to rise, and as businesses increasingly prioritize ownership and intellectual property, the trend toward custom application development is likely to continue.

For businesses looking to the future, the choice between off-the-shelf, SaaS, and custom development will depend on their specific needs, resources, and long-term goals. However, the resurgence of custom development highlights the ongoing importance of creating software that is not just good enough, but truly tailored to the unique requirements of each business.

The journey of application development has been one of innovation, adaptation, and continuous improvement. As we look to the future, the ability to leverage new technologies and methodologies will be key to building the next generation of business applications—applications that are not only powerful and flexible but also capable of delivering real value in an increasingly complex and competitive world.

About the Authors

David van der Wees is a seasoned business development professional with over 40 years of experience in the IT industry. Throughout a distinguished career, David has consistently demonstrated a passion for leveraging digital technology to drive business outcomes and enhance operational efficiency. With a deep expertise in crafting innovative solutions, David has played a pivotal role in helping organizations across various sectors, including finance, manufacturing, transportation, and retail, to achieve their digital transformation goals.

Known for an innovative style and a commitment to excellence, David is not only a technical expert but also a strategic partner to clients. Whether it’s guiding large-scale digital initiatives or consulting on cybersecurity frameworks, David brings a wealth of knowledge and a results-driven mindset to every engagement.

In addition to technical expertise, David is a thought leader in the industry, frequently sharing insights on the importance of aligning people, processes, technology, and purpose in digital projects. With a track record of success and a dedication to continuous learning, David remains at the forefront of the ever-evolving digital landscape.

Bryce Carter

Passionate about business and technology, Bryce works with financial services clients to drive meaningful progress in their digital and security initiatives. With over 10 years of experience, he is an empathetic listener and client advocate, focused on delivering value through a wide range of services.

As a member of the Enterprise Sales team, Bryce represents all services across Online, helping clients access the incredible talent and knowledge needed to compete (and win) in an evolving business landscape.