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6 Evolving Market Trends in Enterprise Software

solution-cloud.jpgTrends in today’s enterprise software marketplace are rapidly changing. With huge leaps in functionality enterprise software boasts more features, greater functionality and increased usability than ever before. The driving force behind this evolution has been improved technology and increased user demand. In the first quarter of 2017, Gartner predicted that global spending on enterprise software would be US$394.8 billion, representing a growth of 7.3% over 2016.1

The challenges and choices buyers  face are daunting. Here are six software trends to consider:

1. In-House or Cloud Based

The control and security of licensed software? Or the flexibility of SaaS and cloud-based solutions with the potential for lower total cost of ownership. Enterprise software vendors are furiously re-tooling their sales and delivery models. By 2020, over 80% of software vendors will change their business model from the traditional license model to a subscription solution.2 We advise caution in your selection process. Choosing a vendor with a sterling reputation is critical when opting for a SaaS or cloud-based platform.

2. Increased Cyber Crime

No matter if you run your software in-house  or have opted for cloud-based hosting, your data is at risk of a security breach. According to an article in Cybersecurity: “Cybercrime damages will cost the world $6 trillion annually by 2021.”3 The threat of a hack from either outside or inside of your organization is growing daily. Standard security measures are no longer enough, you need stronger security barriers to protect your data.

3. Bring Your Own Device (BYOD)

According to a recent Forrester report, more than 50% of North American companies are developing BYOD programs in response to workforce demand.4 This rising trend in employees using their own mobile devices and laptops enables them to have greater flexibility, but also poses security risks and infrastructure problems. Enterprise software must be compatible with a wide range of devices and operating systems, and keep your data secure at the same time.

4. Social Media

Ubiquitous social media has an increased presence in the workplace, with many employees being easily distracted. In fact, a survey by Pew Research Center revealed that 77% of workers use social media in the workplace.5 However, companies are finding value in social media to improve team collaboration. The same survey reported that in 2016, 25% of these employees were using social media to find solutions to work-related problems, and that number continues to grow.4 Today’s enterprise software should have integrated features such as social sharing capabilities, file sharing, and search functionality.

5. Data Insight

The need for specialists to analyze data, gain insights and generate reports is dwindling. Analysts are being replaced by sophisticated enterprise software applications. These solutions enable companies to optimize and analyze big data, quickly adapt to changing market conditions and drive operational efficiency.

6. Software Updates

There is increasing pressure on your employees to deliver better results in a shorter time frame. Your enterprise software systems must adapt to and be in sync with their workflows. Having out of date software impacts morale and your bottom line. Securing the services of a vendor that is current on the latest technology and can deliver seamless software solutions is in the best interest of all parties concerned.

Keeping your finger on the pulse of the latest software trends is critical to your ability to maintain a competitive edge.   Regardless of what is driving your software purchase, accounting for it is just as important.  Central assists Fortune 1000 companies and their vendors manage the financial, operational and budgetary issues associated with acquiring enterprise software and related technology assets.  Contact us to learn how we can help you.

Sources:

  1. Gartner, Forecast: Enterprise Software Markets, Worldwide, 2014-2021, 1Q17 Update, Mach 20, 2017.
  2. Smarter with Gartner, Moving to a Software Subscription Model, November 12, 2015. 
  3. Cybersecurity Market Report, Q2 2017. 
  4. Forrester Research Inc., Bring Your Own Device Report, 2017.
  5. Pew Research Center, Social Media and the Workplace, June 20, 2016.
  6. Computer Weekly, How Insight-Driven Enterprises Use Data, February 2, 2016. 

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