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SaaS Alternatives6 min readFebruary 20, 2026

35% of Teams Already Replaced SaaS — Here's What They Built Instead

The Replacement Wave Is Real

Retool surveyed 817 builders in early 2026 and the headline finding is hard to ignore: 35% of teams have already replaced at least one SaaS tool with a custom build. Even more striking, 78% expect to build more in 2026.

This isn't a fringe movement. It's a structural shift in how businesses think about software.

What's Getting Replaced First

The data is clear on which categories are under the most replacement pressure:

Category% Under PressureWhy
Workflow Automation (Zapier, Make)35%Per-task pricing adds up; custom workflows are cheaper to run
Internal Admin & Ops Tools33%Paying enterprise prices for tools only a few people use
BI & Reporting Dashboards29%$95/user/month for charts most people check weekly
CRM & Sales Tools25%Salesforce at $500/seat/month for top tiers — using 5% of features
Form Builders & Intake25%Low complexity, high ROI — easiest wins
Project Tracking23%Generic tools force your process into their workflow
Customer Support21%Bloated ticket systems with unused features

The pattern is clear: tools where the gap between what the SaaS provides and what the business actually needs is widest are the first to go.

Real Examples

  • eXp Realty eliminated roughly $1M/year in per-seat licensing. Their CIO said it plainly: "Every SaaS is on the chopping block." They built a replacement in 6 hours that a vendor quoted as a multi-year project.
  • ClickUp saved $200K/year by replacing their automation software with custom-built internal tools using Retool.
  • Harmonic replaced a $20K/year third-party tool and now runs 33 internal applications — all custom-built.
  • A 12-person startup cut their SaaS spend from $3,200/month to $480/month — an 85% reduction — by self-hosting alternatives.
  • Why Now?

    Three converging forces:

  • AI-assisted development compressed build times by 30–55% for scoped tasks. What used to take months now takes weeks.
  • SaaS pricing inflation (8–12% YoY) made the ROI math undeniable. When your vendor raises prices 10% every year, the custom build payback period keeps shrinking.
  • The prototype-to-production gap is closing. 51% of builders have now shipped production software using AI. This isn't just prototyping anymore.
  • The Counter-Argument (And Why It's Weakening)

    The biggest objection is maintenance: "Who fixes it when it breaks?" It's a fair concern. But the data shows that well-built custom tools with 10–20% annual maintenance budgets cost far less than the SaaS alternative over a 3-year window.

    A custom CRM built for $40K with $8K/year maintenance costs $64K over three years. The Salesforce equivalent for 100 seats costs $234K over the same period. That's a 73% savings — and your tool doesn't get features you didn't ask for bolted on every quarter.


    Curious which tools in your stack are the best candidates for replacement? Take our free SaaS audit — it takes 5 minutes and shows you exactly where the savings are.