What are the Cost Implications of Using Low-Code Platforms for Business ?

The Cost Implications of Using Low-Code Platforms for Business


Cost is a paramount concern when it comes to business decisions, especially for software development. With the rise of low-code platforms promising faster development cycles, you might wonder: What does this mean for your budget? Let’s delve into the cost implications of adopting low-code for business.

1. Upfront Investment

Low-code platforms often require a licensing fee. Depending on the provider, this could be a one-time purchase, a monthly subscription, or an annual fee. While there's an upfront cost, it's essential to measure this against the long-term savings the platform can provide. Forrester’s research indicates that the average low code platform fees can range from £250 - £18,000 per year. This is a large swing and is dependent on a number of factors.

2. Reduced Development Time

Time equates to money in the business world. With faster development cycles offered by low-code platforms, the reduced man-hours can lead to substantial cost savings, especially when considering the salaries of developers. Gartner reports that low-code can reduce application development time by up to 10 times.

3. Lower Training Costs

Low-code platforms are designed for simplicity and ease of use. This intuitive nature means less training is required for both developers and citizen developers, translating to reduced training costs. A survey by Mendix found that training costs could be cut by up to 50%.

4. Scalability and Maintenance

While low-code platforms can offer swift scalability, there may be costs associated with platform upgrades or when pushing the platform beyond its intended capabilities. Additionally, fees may arise from periodic updates or when seeking advanced functionalities not natively provided.

5. Less Rework and Bug Fixes

With built-in modules tested by the platform providers, the components are less prone to errors than custom-coded solutions. Fewer bugs mean less time (and money) spent on rework.

6. Integration Costs

Many low-code platforms offer out-of-the-box integrations. However, if your business uses niche or custom systems, you might incur additional costs to integrate them seamlessly.

7. Operational Cost Reduction

By allowing businesses to rapidly develop solutions, operational inefficiencies can be swiftly addressed, leading to potential long-term operational cost savings.

8. Vendor Lock-in Considerations

Committing to a particular low-code platform might make transitioning to another solution or a custom-coded alternative costly in the future, both in terms of finance and time.

9. Licensing Based on Usage

Some platforms might charge based on the number of apps developed, the number of users, or the volume of data processed. It's crucial to understand the pricing model to anticipate costs as your usage grows. Forrester’s analysis found that as businesses grow, they might face a 15-25% increase in costs as usage intensifies.

10. Long-term ROI

While there are associated costs, the return on investment (ROI) should be a core consideration. Faster time-to-market, increased agility, and reduced development time can yield substantial financial returns over time.  Forrester’s research on select low-code platforms revealed a 260% ROI over three years for some businesses.

Case Study

'GreenTech Solutions' needed an internal HR system. Traditional development quoted them a 6-month timeline and $150,000. Opting for a low-code platform, they spent $50,000 on licensing and development, completing the project in 3 months. The swifter solution allowed them to address operational inefficiencies, saving an estimated $30,000 over the next year.


The cost implications of low-code platforms are varied. While there are undeniable upfront and potential ongoing costs, the efficiency, speed, and adaptability they offer can lead to significant financial savings and compelling ROI. When considering low-code, it's crucial to assess both immediate expenses and long-term value.

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