Building Your Own Software Stack Gains Traction as AI Assistants Advance
The application development landscape is shifting with the emergence of “vibe coding” - using AI tools to create custom enterprise software. While still early, this trend sees companies replacing traditional SaaS solutions with internally built applications, prompting concerns among established vendors.
The New DIY Approach
AI coding assistants are enabling businesses to generate software on demand, particularly for smaller utilities and workflow apps. Factory CTO Eno Reyes notes that his company now builds tools internally instead of buying them - including customer support workflows and analytics dashboards - a practice they’re seeing customers adopt as well.
“A lot of the tools they used to buy are small utilities or micro-SaaS products,” says Reyes. “With an agent, someone can just say, ‘Build me a dashboard that shows engineering velocity’ and get it done without procurement delays.”
Benefits & Challenges
Advantages:
- Faster development cycles
- Greater flexibility to meet specific needs
- Direct integration with internal data/systems
Disadvantages:
- Responsibility for maintenance & support falls on the deploying organization
- Building complex systems requires significant infrastructure and expertise
- Initial development cost can be higher than subscription fees
Expert Perspectives
Adam Arellano, field CTO at Harness, cautions that while building point solutions can provide short-term gains, maintaining them and ensuring compatibility with other systems presents challenges.
“This is happening a lot, with some companies mandating ‘no new software purchases’ - but it often creates more work in the long run,” Arellano explains. “The satisfaction of quickly creating something specific fades when you realize you need to support it over time.”
What This Means for Businesses
As AI coding capabilities improve, we can expect this trend to accelerate, particularly for companies with unique requirements or those seeking greater control over their technology stack. However, a balanced approach that leverages both custom-built solutions and established enterprise platforms may offer the optimal path forward.