4 defining ‘Themes’ increasing the uptake of Next-Gen Software Products
……Snippets from Software Products Chapter of NASSCOM IT-BPM Strategic Review FY2017. Download the full report from here
As discussed in my previous blog, Strategic Review of Indian Software Product Industry – FY2017, the India market mimics the technology trends of the global landscape. Every enterprise, both globally and in India, is wishing to cut down their operational costs, drive their businesses efficiently, stay connected (while on-the-go!), and of course prevent themselves from being victims of cyber attacks.These 4 themes are becoming prominent across businesses and enterprises, that is driving adoption of new generation enterprise software products.
- Cloud for Cost Efficiencies: With every year, cloud adoption is witnessing a decent uptake, and the best part is we still have a long way to go before we hit the tipping point. As per IDC, public cloud software product market witnessed a growth of 23% in 2016. Although this is just 20% of the global software revenue, its CAGR (2016-2019) is many times higher than that of on-premise solutions. Most CIOs are increasingly becoming open for cloud-based solutions, as compared to an on-premise product. With cloud having the potential of saving 14% of IT budgets, virtualization and cloud can in fact create more budgets for implementing smarter technologies to make businesses efficient.
- Analytics/Artificial Intelligence/Automation for intelligent businesses: Customers expect huge value-adds from installation of software products. We are ahead of the days when a simple ‘Business Intelligence’ software provided analysis of sales, growth, and profit margins. Customers now seek intelligent, intuitive and agile systems that can seamlessly combine data from multiple platforms, identify patterns, and provide predictive analytics. Automation of mundane tasks, and implementation of machine learning-powered predictive software is being established as a means to obtain competitive advantage. Customer engagement is also being revolutionised by increase in the adoption of intuitive and self-learning chat-bots and virtual assistance.
- Inter-operability and Connected Infrastructure: There is also a lot of buzz around interoperability and the ability to connect on-the-go. Most of the software product companies have omni-channel offerings, to provide seamless user experience across platforms. They also provide integration APIs for connectivity to other products, platforms, and physical devices, creating a mesh of connected infrastructure. This is rapidly increasing the adoption of connected cars, cities, homes, and everything that falls under the umbrella of IoT.
- Cyber security: With increased virtualization of data, and connectivity/interoperability of systems and software, security continues to grow in its prominence. Worldwide, there have been instances of data breaches and frauds, not only at enterprise level but also at the level of government and national security, prompting stakeholders to start thinking holistically in its implementation of security products. All 4 segments of the security landscape – endpoint, network, data, and identity and access management, are no longer being seen in silos by company CIOs, and the concept of ‘integrated security’ is slowly becoming an industry norm.
For more such market themes, industry numbers, and relevant case studies supporting the themes, download your copy of NASSCOM’s flagship report