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Lower TCO and speed up development with SAP Build

GigaOm conducted a TCO analysis comparing SAP Build with traditional custom development. This is what they found.

In-house or off-the-shelf? Stick with legacy or go modern? The sheer number of development platforms to choose from is overwhelming—it’s no wonder that today’s enterprises often struggle to figure out which one offers the best total cost of ownership (TCO). Every organization has the ultimate goals of accelerating development time, reducing reliance on senior-level developers, and minimizing long-term costs, but is there a clear way to reach them?

And as if reaching those goals isn’t challenging enough on its own, it also matters how quickly you can get there. In today’s fast-moving business landscape, urgency is critical—delays in deploying new technology solutions directly translate to missed market opportunities, lost revenue, and mounting technical debt. The pressure on IT teams continues to grow, while budgets and developer resources remain constrained.

Modern development tools like SAP Build offer a powerful differentiator, allowing organizations to deliver features faster, adapt to changing market demands, and reduce reliance on hard-to-come-by senior developer talent. These tools drive immediate business impact across industries—from enabling financial services and retail to launch customer-facing features in days, to helping supply chain-dependent sectors like manufacturing and logistics to pivot quickly. At the same time, standardized development patterns and automation help reduce technical debt and lower TCO, making time-to-delivery a core element of business strategy.

To find out the true value of SAP Build for transforming the development process, analyst firm GigaOm conducted a TCO analysis comparing SAP Build with traditional custom development. In addition, the firm created a CxO decision brief to help decision-makers understand the criteria for selecting a development platform that lowers TCO. In this article, we’ll explore their findings.

What is SAP Build?

First of all, what is SAP Build? It’s a comprehensive application development solution that lets you build enterprise applications using a suite of low-code, pro-code, generative AI, and AI-assisted tools designed to streamline development and expedite time to market. Not only can SAP Build modernize the development environment by reducing technical debt and maintenance costs associated with legacy code, it’s also the superior platform for developing SAP-specific applications. It represents a significant advancement in application development, providing a smarter, faster way to build enterprise applications.

SAP Build enables companies to:

SAP Build vs. custom development

Custom development offers flexibility, but often at a higher cost. The TCO analysis conducted by GigaOm highlights several ways that SAP Build wins over traditional development approaches.

Key takeaways on the concrete technical outcomes of developing in SAP Build include:

3

x

Greater development velocity

Projects are completed in less than half the time compared to traditional development due to SAP Build’s simplified workflows, automated service implementation, and integrated testing capabilities.

59

%

Gain in labor efficiency

In software development, the overall labor expenditure required to complete any piece of work is defined not only as time, but also as effort through measurement units known as story points. GigaOm explains, “Unlike time estimates, story points are a relative measure of complexity and effort, where higher numbers represent more complex or time-consuming tasks.”

The analysts found that by using SAP Build’s comprehensive capabilities for low-code and AI through the integrated Joule copilot, development teams became far more efficient—sometimes lowering their expended effort from 78 story points to only 32.

37

%

Reduction in senior developer reliance

Organizations can rely more on junior developers for operational tasks, achieving substantial labor savings. Senior developers, who are often scarce, can then focus on more strategic IT projects.

30

%

Faster test data creation

AI-driven automation enhances efficiency, ensuring higher data quality and consistency.

Qualitatively, SAP Build provides benefits such as:

Who's the best fit for SAP Build?

For businesses looking to streamline and accelerate their development processes, as well as future-proof their IT investments, SAP Build is a strong contender.

Using CAP, AI, and a comprehensive set of low-code and process automation tools, developers can focus on delivering business value rather than managing operational tasks.

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SAP Build

GigaOm decision brief

See how AI-infused SAP Build tackles developer scarcity and accelerating business demands.

Read the analysis