Member post originally published on Facets Cloud’s blog by Anshul Sao

Explore how Internal Developer Platforms (IDPs) boost ROI, enhance developer productivity, and accelerate business growth in our latest blog.

Internal developer platforms (IDPs) have become increasingly relevant in modern business. They unify the internal tools, services, and workflows that companies use to improve developer productivity and experience. 

According to a Forrester Opportunity Snapshot, implementing an IDP can improve time-to-market and increase developer productivity and customer satisfaction. As businesses aim to maximize return on investment (ROI), IDPs are proving to be a strategic investment. 

But how can you implement an IDP and see similar ROI growth? Let’s find out. 

The Importance of Internal Developer Platforms (IDPs)

Investing in internal developer platforms makes sound business sense for companies that rely on software as a critical differentiator. 

IDPs combine all the systems developers use into a unified experience. They provide engineers with the infrastructure and enablement layer to build products and services more efficiently. 

This infrastructure generally includes centralized code repositories, shared libraries and frameworks, automated testing and delivery pipelines, and self-service tools.

Engineers focus on more high-value, innovative work by removing repetitive tasks and friction points in the development process. IDPs also foster collaboration, knowledge sharing, and best practices adoption across engineering teams. All of this ultimately translates to faster delivery of high-quality software.

What Role Do IDPs Play in Maximizing ROI

IDPs are not just cost centers. Instead, they should be viewed as strategic investments that can maximize ROI in several ways:

IDPs essentially act as force multipliers for engineering teams by optimizing the software development lifecycle. The cost savings and increased output enabled by IDPs have ripple effects that ultimately result in higher revenues, lower costs, and maximized ROI.

What Business Metrics Do IDPs Impact

Several vital business metrics see measurable improvements from implementing internal developer platforms. The areas most impacted include:

Infographic shows the impact experienced on each business area as a result of improving developer experience, in app development, delivery and operations

1. Revenue Growth

One of the most direct results of effective IDPs is increased revenue. IDPs directly accelerate the creation of revenue-generating products and features by providing developers with an agile platform to quickly build and release high-quality software tailored to users’ needs.

Rather than getting bogged down by infrastructure complexities, developers can focus on innovation to solve customers’ pain points. IDPs also foster innovation by freeing developers from mundane maintenance tasks.

According to the Snapshot Survey, 85% of survey respondents agreed that investing in internal developer platforms and improving DevEx can help drive revenue growth for their firms. 

2. Reduced Time-to-Market

By centralizing the tooling, frameworks, and processes involved in application development, IDPs significantly reduce the time it takes to conceptualize, build, test, and launch new products or features.

IDPs minimize duplicate work across teams and allow the reuse of code, APIs, and services to accelerate release cycles. Companies can take an idea from conception to launch much faster.

This reduction in time-to-market provides greater flexibility to respond to emerging trends, customer demands, and competitive pressure. Teams can iterate rapidly, testing concepts and validating ideas before bringing finished products to market.

The same survey also found that 77% of companies attributed measurable improvements in time-to-market to their usage of internal developer platforms.

3. Enhanced Customer Satisfaction

The combination of faster release cycles and higher-quality software also enhances customer satisfaction. IDPs empower developers to address issues quickly and consistently deliver upgrades and new features based on direct customer feedback.

With these rapid responses to customer needs, companies can nurture greater brand loyalty among users and build lasting relationships. IDPs help ensure customers have access to the latest innovations delivered reliably.

Satisfied customers provide word-of-mouth referrals, use products more frequently, and are open to exploring additional services. Maintaining high customer satisfaction is vital for sustained revenue growth.

4. Cost Savings

Looking specifically at the financial impact, IDPs can reduce the time to market, offering significant cost savings:

Lower Time-to-Market Results in Lower Costs

Each day or week shaved off the development lifecycle translates directly to tangible cost savings from:

Improved Market Lead

Beyond payroll savings, faster time-to-market unlocks significant financial upside:

Together, these financial benefits maximize ROI from technology investments. IDPs are accelerators for both cost savings and identifying new revenue streams.

5. Better Developer Experience and Talent Retention

IDPs streamline developer workflows, giving them more time to focus on creative work instead of the daily grunt. This helps improve both developer experience and, with that, good talent continues to stay with the company.

Improving Developer Experience (DevEx)

Developer Experience (DevEx) refers to engineering teams’ satisfaction, productivity, and effectiveness. Several factors contribute to DevEx:

IDPs directly enhance DevEx by providing unified, high-quality tooling, streamlining workflows, and enabling productivity through automation.

Boosting Talent Retention

While hiring good talent is difficult enough, organizations must also work to retain their top performers. Companies lose invaluable institutional knowledge without strong retention and suffer high retraining costs.

IDPs boost retention by:

Developers stay challenged, sharpen skills, and advance their careers – all while driving business impact. The result is a virtuous cycle of top talent and technology accelerating each other.

6. Catalyst in Digital Transformation

On a broader level, internal developer platforms serve as a vital catalyst for digital transformation within companies. They empower organizations to optimize processes and customer experiences through software continually.

IDPs democratize software development across the enterprise. They allow any team to leverage shared services to build applications aligned to business objectives and customer needs.

Key benefits:

The outcome is a responsive organization wired for constant digital innovation, and the combination of these business metrics makes IDPs a clear ROI win for most businesses. But how can you get started with improving your ROI using IDPs? It’s simple.

How to Maximize the ROI of Internal Developer Platforms

With IDPs proving their ability to impact key business metrics positively, the focus shifts to how companies can implement platforms to maximize ROI.

Internal developer platforms require thoughtful planning and care to maximize ROI. But once implemented successfully, they become invaluable infrastructure empowering innovation across the organization. 

While the apparent option may seem to be building a custom IDP, you would spend a lot of resources reinventing the wheel. 

Instead, buying an extensible IDP is a better long-term decision as it requires lesser maintenance without losing the extensibility you would get from an in-house IDP.

How Facets Helps Businesses to Maximize IDP ROI

Facets is an extensible internal developer platform designed to simplify platform engineering for complex cloud workloads. Instead of your teams adjusting to a new workflow, Facets fits right within your existing way of working and can be modified to suit your exact requirements. 

Here’s how Facets can help businesses achieve the IDP best practices and maximize ROI:

Diagram show Continuous integration to QA, Dev and Prod with Facets

1. Extensible and Customizable

2. Automates Repetitive Tasks

3. Fosters Collaboration

4. Enhances Security and Compliance

5. Accelerates Time-to-Value

Gain the Competitive Edge and Maximize ROI with IDPs 

Internal developer platforms have transitioned from “nice to have” to “need to have” in the race to build software better and faster than competitors. IDPs directly accelerate product development while optimizing engineering productivity and costs.

By providing the foundation for developers to focus on delivering business value vs. building infrastructure, IDPs boost ROI across critical metrics like time-to-market, customer satisfaction, and revenue growth.

As software becomes increasingly central to competitive differentiation, investing in an extensible and scalable IDP is no longer an option.

Platforms like Facets offer turnkey solutions to help companies implement IDPs that evolve with the business. With the right platform, organizations can maximize ROI while navigating complex digital transformations with agility.