Low code and No code, features of concepts, advantages and limitations

2024: What is wrong with low-code in large companies in Russia - TA opinions

The popularity of low-code solutions in Russia is growing, and one of the reasons for this trend is the lack of developers. However, such an architecture is not always suitable for large companies with complex business process logic. In July 2024, TAdviser interviewed market participants to sort out the issue.

According to experts interviewed by TAdviser, the use of low-code in large IT projects can have several advantages:

• high development speed;
• flexibility - through integration with other systems and services:
• reduced costs.

By July 2024, BPMSoft CEO Yuri Vostrikov estimates at 70% the share of Russian companies that have already implemented various solutions based on low-code technologies. Postgres Professional co-founder and deputy general director Ivan Panchenko warns that at first glance, platforms with a "low code" may seem more convenient and profitable, but after a year of relatively successful work, you can face fundamentally insurmountable restrictions.

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The main low-code problem for large businesses is related to the creation of a customized project. As a rule, Enterprise-level companies - large customers with many business processes, an extensive internal corporate structure and strict information security requirements - need greater flexibility and customization of software products.

Insufficient flexibility and lack of functions of Russian low-code platforms limits the implementation of the customer's business needs, for example, specific types of databases, to provide high-quality user experience, says Simpl Development Director Veronika Teploukhova. When using low-code platforms, the choice of technologies is limited by the ability to integrate with the platform laid down by its developers. The platform may not have the functionality required by the customer, and its implementation is too expensive and carries certain architectural risks, she added.

Low-code platforms may not be flexible enough to scale, believes Anton Tarasenko, co-founder and CEO of the DNA Team mobile application company. He also drew attention to such a factor as dependence on one vendor.

This limits the company's leeway and complicates the transition to other systems. If this is a large company, then it essentially becomes tied to a third-party participant - to the supplier. This is a risk that you need to pay attention to, "Tarasenko explained.

Linx Internal Project Manager Evgeny Kasyanov says that low-code technology can be used to implement large IT projects, but only when creating solutions related to simple business processes. For complex and non-typical processes, for example, difficult, specific calculations or generation of complex documents, it is better to develop your own product. Solutions created using Low-code technology will not cope with these processes, because their functionality is limited in many points, he noted.

In addition, according to the Chief information officer of Selecty Group of Companies Alexander Vorfolomeev, some low-code platforms have restrictions on security, compliance with industry standards and legislative requirements. This will be a serious problem for large enterprises operating in highly regulated industries.

Nikolay Nikolenko, technical director at IT company Kode, agrees with the security problem of low-code platforms. Such a solution does not give the developer the opportunity to fully control the storage, processing and transfer of user data, and data leakage is fraught with a stain on reputation, which large businesses usually try to avoid, Nikolenko noted.

There is also a problem with the redistribution and restructuring of the business model of management and the center of responsibility from centralization to decentralization, to the level of jobs, says Anton Martyanov, director of the First Bit department. Especially clearly, such a redistribution is given to common service centers and IT subsidiaries of holdings, he added.

Another factor that plays against low-code is related to the difficulties in integrating the solution with corporate business systems, for example, an HR system, with various databases, with corporate portals, etc. In these cases, low-code often loses, similarly with strict requirements for adapting the interface, says Vitaly Tomko from Directum.

And the last thing that experts pointed out was the insufficient level of performance for large projects, which the low-code architecture has. According to Nikolai Nikolenko from Kode, complex multi-component operations that large business customers usually need - for example, verifying user data or paying in different ways, low-code may not pull and begin to "slow down."

The low- and no- code solutions are most applicable in cases where a linear or weakly branching process is described without the presence of dozens of reactions (connections) and processing from dynamic entities. Also, such products often use queues to perform sequential operations, which leads to delays between the execution of actions that may be critical in some situations, "said Konstantin Leladze, technical director of Violet product at Proscom IT company.

2023: Global Low Code Technology Market Size Reaches $22.25 Billion for the Year

In 2023, the global market for low code development platforms reached $22.25 billion. This industry is rapidly developing, which is due, among other things, to the introduction of artificial intelligence. This is stated in a study by Fortune Business Insights, the results of which were published on October 21, 2024.

Low code technologies allow organizations to create and implement applications without extensive programming knowledge. The integration of AI into low code platforms opens up new opportunities for both developers and enterprises in general. By using large language models (LLMs) trained on scale-out datasets, generative AI tools help developers quickly solve complex problems. By applying AI with low code, companies can gain significant benefits, such as more efficient data analytics, improved user experience, lower costs, accelerated development processes, etc.

Increasing demand for low code solutions is facilitated by ongoing digital transformation. Companies around the world are looking to improve customer service and improve profitability by optimizing workflows. By leveraging low code development, organizations are able to reduce IT investment, quickly adapt to changing conditions, and improve operational efficiency.

At the same time, there are also certain restraining factors. One problem is the lack of universal integration between low code-based tools and platforms with different software systems. Developers and designers are forced to consider this feature when creating software to prevent potential complications in the future. The other obstacle is called limited capabilities in terms of personalization of applications.

By application, the market in question is segmented into BFSI (Banking, Financial Services and Insurance), Healthcare, Education, IT and Telecommunications, Media and Entertainment, Manufacturing, Public Administration, Retail, etc. In 2023, the IT and telecommunications segment took the largest share: low code development platforms help IT departments improve efficiency and optimize complex processes. In addition, BFSI and health care account for a significant portion of the costs.

Geographically, North America is the leader, which in 2023 provided $7.58 billion of total sales. For comparison: a year earlier, this figure was estimated at $5.9 billion. At the same time, the Asia-Pacific region is showing the highest growth rates. Leading industry players include:

• Appian;
• Microsoft;
• Salesforce;
• OutSystems;
• Mendix Technology BV;
• Oracle;
• Pegasystems;
• Betty Blocks;
• ServiceNow;
• Zoho Corporation Pvt.

According to the deployment method, the market is divided into cloud and local segments. The first takes the largest share, as it reduces maintenance costs and simplifies interaction between participants in the development process. At the same time, the segment of local solutions also continues to develop: this model provides greater control over the security and confidentiality of data.

At the end of 2024, revenue in the low code technology segment is estimated at $28.75 billion. Market Research Future analysts believe that in the future, the CAGR will be 32%. As a result, by 2032, costs on a global scale could increase to $264.4 billion.^[1]

2022

The volume of the low-code systems market in Russia amounted to about 8 billion rubles

The volume of the low-code systems market in Russia in 2028 will amount to about 30 billion rubles. At the end of 2022, this figure amounted to about 8 billion rubles. Such information is provided in the Startpack article on the state of the low-code systems market in Russia, which Startpack representatives shared with TAdviser on July 26, 2023. The material was prepared on the basis of a study conducted by IT expert Nikita Kalinkin, an employee of Kept.

Until the events of February 2022, the low-code or LCAP (low-code application platform) market in Russia presented solutions from the following foreign companies and represented a large share of the Russian market (over 60%): Creatio, Mendix, Appian, Salesforce, as well as LCAP solutions from SAP and Microsoft.

LCAP products of foreign vendors were used by many companies in the Russian industry, power, financial sector, etc. For example, many large Russian companies used solutions based on the Creatio platform.

The share of foreign companies selling LCAP solutions on the Russian market has decreased to minimal values ​ ​ (no more than 5%): enterprise-level solutions are actually no longer sold by Western companies. The number of active players in the Russian market, due to the above reasons, is relatively small.

The top 10 vendors are as follows: # Naumen # ELMA # Comindware

1. Knowledge Space

# PIX Robotics # Amber # GreenData # FIS # Pyrus # Directum

Russian large corporate customers for July 2023 face a choice: the purchase of a third-party "boxed" solution, their own development or acquisition of LCAP to create and gradually develop the necessary functionality.

LCAPs are controversial. On the one hand, we can talk about a relatively low level of trust on the part of the conservative IT community and, above all, professional developers who see them as only underdeveloped IT development tools. However, business customers are increasingly hearing statements that it is LCAPs that allow you to effectively solve tasks that your own or custom development could not cope with.

The study also fleshes out the demand estimate: according to Mr. Kalinkin, large customers are approximately 120 companies from the RAEX Analytics TOP-500 rating.

The number of consumers from medium and small businesses is estimated at about 10 thousand companies. These companies represent financial services, retail, industry and hospitality.

LCAP applications:

The study predicts an increase in the number of users. The main growth driver will be the development of large ecosystems VK, Yandex, Sberbank, which will provide affordable LCAP solutions and related cloud services.

Another forecast that is given in the material is a change in demand at the user level. In the short term, Citizen developers (or "citizen developers") will be added to the number of those who use low-code solutions - these are users who do not have technical knowledge who create software applications using low-code platforms. Citizen developers or simply business analysts (without programming knowledge) use low-code platforms to automate business processes, create dashboards and reports, and analyze data. IT specialists, in turn, provide deployment of user applications, as well as assistance in integrating LCAP-based solutions with other systems in the company's IT landscape.

A separate part of the study concerns the impact of LCAP solutions on the IT labor market. It is described as "dual." On the one hand, the need for traditional IT specialists is predicted to decrease, on the other hand, the author of the document expects Citizen development to grow.

LCAP platforms allow people with little or no programming experience to develop software applications, meaning that demand for traditional software developers may decrease.

However, this shift may also lead to increased demand for other roles such as business analysts, project managers and user experience designers, as people with these skills will still be needed to develop software solutions.

In addition, the ability to quickly and easily develop software applications using low-code platforms can also lead to improved performance and efficiency, since enterprises can develop software solutions themselves, and not give this task to third-party developers. This can result in cost savings for the business.

However, the author of the study warns of an important risk: the quality of applications being developed may decrease due to insufficient experience in creating IT solutions for Citizen developers. People without programming experience may not fully understand the implications of their decisions in development. These risks can be mitigated by involving companies with sufficient experience in implementing LCAP-based solutions. Management consulting service providers can become such companies, since their employees have extensive experience in creating advanced Excel models, which, in fact, are the prototype of LCAP solutions. As practice shows, representatives of the largest consulting groups are actively studying Russian LCAPs, undergo certification and begin their use during the implementation of large^[2] projects^[3].

Global low code technology market grows 21% to $22.5 billion - Gartner

On December 13, 2022, Gartner published the results of a study of the global market for low code development technologies - application design tools using graphics tools and special functions that reduce the requirements for technical skills and programming experience.

Analysts say organizations are increasingly turning to low code development technologies to meet growing demands for application adoption speed and provide flexibly customizable automation workflows. Investment in this area will continue to increase, which will help enterprises develop innovation and component integration. The industry is catalyzed by business technologists and hyperautomatization.

Global low code technology market grew 21% in 2022

It is estimated that in 2022 the volume of the global low code technology industry reached $22.5 billion. This is approximately 21% more than the result for 2021, when expenses were $18.5 billion. In 2023, an increase of 19.6% is expected - to $26.9 billion.

Gartner divides the low code development technology market into several key segments. These are low-code application platforms (LCAPs); Business Process Automation (BPA) multi-channel development (MDXP) platforms; process automation technologies based on the use of software robots (RPA); cloud platforms with low code (iPaaS) capabilities; Civil Automation Systems Development Platform (CADP); other instruments.

According to the published data, LCAP decisions in 2022 accounted for almost $8.0 billion against $6.3 billion in 2021. Another $2.6 billion was brought by BPA funds, while in 2021 the volume of this segment was $2.4 billion. MDXP products in 2022 will provide revenue of about $2.5 billion against $2.1 billion a year earlier. RPA systems will account for $2.9 billion in 2022 against $2.4 billion in 2021. Approximately $5.7 billion will be provided by iPaaS platforms, while in 2021 they accounted for $4.7 billion. Costs in the CADP segment in 2022 will reach $732 million, while in 2021 they amounted to $554 million. Another $109 million in 2022 will provide all other solutions ($92 million in 2021).

While the LCAP is the largest market segment, the CADP sector is forecast to grow at the fastest rate - plus 30.2% in 2023. Typical uses of CADP include automating workflows, creating web forms, combining data and content across multiple SaaS applications, and creating reports and visualizations of data.

Global low code technology market grew 21% in 2022

Gartner predicts that non-formal IT developers will account for at least 80% of low code tool users by 2026. For comparison: in 2021, this figure was 60%. Interest in hyperautomatization continues to increase due to increasing operational optimization requirements and increasing economic pressures. According to analysts, spending on software technologies that provide hyperautomatization will reach $720 billion in 2023. Some of this money will go to low code development tools, including LCAP, iPaaS, RPA, CADP and MXDP, which will help companies improve the efficiency of business processes.

Low-code development technologies support the modern enterprise, allowing you to create more flexible and fault-tolerant software solutions. These tools can be used to build and reconfigure modular platforms, to create adaptive user applications in light of changing business needs, experts say.[4]

2021: Why Low-Code and No-Code concepts became a hot topic, and where they might apply

Low-Code and No-Code are becoming some of the most talked about topics in 2021. According to Gartner estimates, there are more than 300 solutions on the market that somehow position themselves in this group. According to Forbes forecasts, the Low/No-Code market will reach $187 billion by 2030, and more than 65% of work related to application development will be carried out using Low/No Code solutions.

Indeed, today there are all the prerequisites for this. The growth of business needs in IT is growing, organizations need the ability to quickly experiment and scale their business under a rapidly changing context, quickly launch new digital services and translate business online.

The idea of ​ ​ Low/No-Code is not new, but, as in any technology, it took a long time and a long way for technology and the surrounding structure to mature for this

Business needs greatly exceed IT capabilities, and this is exacerbated by the crisis in the developer and engineer market. The proliferation of remote work and the growth of needs for digital projects lead to strong competition between employers for IT specialists, which also generates a sharp increase in wages.

In this context, the concept of the so-called "Citizen developers" is becoming more and more interesting - broad specialists, analysts or business users with minimal basic competencies in IT, who, using certain tools, can create and change IT products, automating a large number of processes on their own.

People who own a business context, get their hands on certain "superpowers" in the form of the minimum necessary expertise and the necessary tools, can create services much faster without involving or minimally involving developers and engineers. And the decrease in the production chain leads to the optimization of communications, which previously required a large amount of resources, which, among other things, led to a significant increase in the timing of projects.

With the arrival of new generations, not only consumers change, but also candidates and employees. The trend for wide-profile specialists is becoming more and more noticeable. The rapid development of technologies, the complication of IT product topologies, a large number of frameworks and solutions led to the emergence of a large number of narrowly sharpened specialists, complex teams and a multi-link structure of their management. Now people with broad competencies are becoming more and more valued, who can simultaneously own the business context and be able to implement/automate processes on their own.

Low-Code/No-Code are quite broad concepts. The area closely overlaps with development accelerators, iBPMs intelligent business process automation systems, iPaaS interactive solutions, and built-in capabilities in specialized accounting systems. Solutions can cover different needs and target different categories of users.

The application areas of the tools can be quite extensive and depend on the specifics of the specific solution:

• User experience;
• Automation of task flows;
• Automation of business processes;
• System and API integration tasks;
• Repositories and working with data;
• API of the monolith legacy;
• Features built into the Low Code business system.

Each solution has its own coverage area and its own target audience of users. Different solutions are suitable for different use cases: complex applications, business processes and integration with the IT landscape of a large organization, optimization of simple routine work, such as working with mail, documents, simple internal accounting systems, etc.

In fact, Low/No-Code is the ability to assemble systems from cubes, ready-made blocks and abstractions, which can be both ready-made operations of interaction with external services and APIs, as well as UI elements, as well as visual representation of task streams and the ability to create logic without writing code or with minimal code writing using scripting languages.

The idea is not new, but like any technology, it took a long time and a long way for technology and the surrounding structure to mature for it. First of all, we are talking about the distribution of APIs and standardization of interfaces and front-end technologies, micro-services, clouds, functions as a service.

The development of computing power and interface capabilities contributed to the preparation of the context for the success of this kind of technology. iBPMs systems and, RPA visual generators landing pages and content resources, generators chat boats are already quite common and bring business value to companies around the world. The extension of solutions to new areas, as well as the complication and enrichment of functionality, is a logical continuation.

As for the differences between No-Code and Low-Code, in general, you have to choose one of two: either flexibility and functional power, or the most reduced requirements for user competencies.

Despite the fact that the border between Low-Code and No-Code is blurred, the main differences in the field of application can be distinguished:

• Low-Code systems, as a rule, are more suitable for complex and loaded tasks of a large company, have a more complex learning curve or require basic technical skills from users (citizen developers). Sometimes vendors can offer, in addition to SaaS, other options for deploying and providing the service - hybrid or private cloud.

• No-Code systems are usually more suitable for simple tasks: optimizing routine operations and workplaces, creating simple unloaded accounting systems for internal purposes. In the vast majority of cases, they are provided only as a cloud SaaS solution, have large restrictions on load and the number of allowed transactions, and high execution delays.

However, this division is very conditional. Many solutions that position themselves as No-Code require writing scripts for non-standard tasks, and Low-Code tools provide such a set of tools and blocks that you can do complex processes without writing a line of code.

When choosing a solution, it is better to pay attention to the capabilities and architecture of the evaluated platform:

• Is it flexible enough?
• Are there opportunities to expand functionality?
• How difficult is it?
• How difficult is it to fit the platform into the existing landscape of the organization?
• What are the security and resiliency requirements and capabilities?
• How demanding is the platform to qualify target users?

No-Code/Low-Code solutions definitely bring tremendous benefits to the business and will be a new reality and top trend for the coming years, however, when choosing a solution, you need to clearly understand the capabilities of the platform, its architecture and correlate this with the requirements and landscape of the organization.

Author: Alexander Bondarik, Head of Leroy Merlin Integration and Low-Code Platforms

Notes