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Enterprises Shift to Internal Tools Amid Governance Concerns

2/17/2026

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Story summary
  • A Retool report finds enterprises are shifting to internal tools, with 35% of 817 respondents replacing at least one SaaS tool.
  • 78% plan to build more internal tools in 2026.
  • 60% report creating tools without IT oversight, raising governance concerns.
  • David Hsu, Retool CEO, says building costs have decreased.
  • The report urges governance as internal software expands to address security and compliance risks.