The SaaS market has been growing at rapid pace for several years, and that momentum shows little sign of slowing. While the market is dominated by a small handful of large vendors, the long tail of the SaaS market is filled with many up-and-coming companies who demonstrate tremendous innovation, and as such, are experiencing staggering growth. From a SaaS buyer perspective, expectations continue to heighten surrounding what software vendors should, and ultimately must, provide if they want to survive over the long term.
Enterprise LOBs are rushing to implement cloud-based SaaS solutions, often without support from IT. However, although initial pilot costs may be minimal, as applications begin to scale, their financial impact becomes significant. What steps can CIOs take to address this problem?
As 3rd Platform technologies continue to expand and evolve, businesses will need to continue to develop their digital transformation strategies to better provide customers the digital services and experiences they expect. Enterprise organizations are taking note; in the next two years, the number of “Digitally determined” organizations with a fully integrated enterprise-wide technology architecture will grow from 33% to nearly 90%. These organizations are committed from moving from an era of experimentation to multiplied innovation, the second chapter of IDC’s 3rd Platform technology framework.
While Platform-as-a-Service (PaaS) is more than 10 years old, the technology has not captured a level of market success commensurate with its mindshare – and has indeed lagged either SaaS or IaaS in terms of market presence. Yet in spite of its slow market growth, PaaS technology has continued to diversify and evolve to support the intensifying developer need for agility and productivity, especially as developers have assumed a front seat at the enterprise digital transformation table.
For the past 30+ years organizations have purchased technology platforms and deployed them on-premises. Most of these legacy systems create a technical debt that organizations find is a nightmare to manage. Customizations, maintenance, hardware and even version control have put the organization at an operational disadvantage.
There is an often-quoted economic theory that describes the balance that occurs when competitors in a market of a fixed size win or lose share depending on the success or failure of the other. The “zero sum game” (as it is known) has been cited so often since the financial crisis of the late 2000’s slowed global growth, that its continued use is becoming something of a cliché.
Organizations rely on SaaS to introduce new capabilities to the business, accelerate time to value, and efficiently provide mobile workers with ubiquitous access to applications and information. “SaaS has been around for more than a decade. IT and business users have learned to trust in the reliability and security of today’s SaaS applications, facilitating a more strategic and integrated approach to SaaS adoption as a step toward transformation,” according to Frank Della Rosa, research director for SaaS and Cloud Software.
Are you ready to compete in the digital economy? Has your organization strategized and actively pursuing DX technology initiatives? Or is your organization just starting to figure out what it means to be digitally transformed? If you are just starting, you better quicken your pace, because IDC believes by 2020, 60% of all enterprises will have fully articulated an organization-wide digital platform strategy and will be in the process of implementing it.
To help organizations evaluate current content management infrastructure and capabilities and identify the steps they need to take to advance…