The world has changed with cloud computing. The way we work, the way we do business, and how we interact in our daily lives with devices, services, and one another is revolutionized. But there was a time when, like many game-changing technologies, it looked like it would never really catch on–at least in the business environment. You remember the old objections: “We’ve invested a lot in our hardware, and I can’t justify cloud server costs.” “Over the years, our software has been continually customized and we can’t afford to change it.” “Our data is very sensitive and more secure in on-site systems than in the cloud.”
Nothing attracts attention like success, however, and the cloud provided the springboard for the explosive growth of a number of well-known disrupters in the industry. Suddenly, traditional leaders were followers in danger of being left behind. The cloud has become standard in both the private and public sectors in a short span of time. 74 percent of companies run software-as-a-service (SaaS) applications, 65 percent currently manage a hybrid cloud environment, and 94 percent plan to deploy multiple clouds, according to IDC.
The rise of these sophisticated cloud computing environments allows every business to become a software business and build smart capabilities. Then companies can connect these capabilities into their applications, such as artificial intelligence (AI), machine learning (ML), blockchain, and the Internet of Things, to create a competitive advantage. IDC conducted a series of in-depth interviews with 12 independent vendors of software (ISVs) worldwide. We look at these cloud opportunities in more detail in the second of a series of blogs based on this research and why a proven cloud platform is the key to success in this dynamic new business environment.
Early cloud adoption focused on SaaS and as a service infrastructure (IaaS), as the benefits of these new models of consumption gained rapid acceptance among digital leaders. But as the pace of innovation continues to accelerate and the market matures, platform as a service (PaaS) plays a growing role in driving digital transformation. Why is it? We entered a new era of computing with the cloud now so established as a core element of enterprise IT infrastructure: the age of the smart enterprise.Companies seek to exploit the flexibility of the cloud to identify new sources of differentiation and competitive advantage by embracing smart capabilities such as AI and ML in their applications.
This is an enormous opportunity for ISVs to deliver transformative cloud-based products and services that enable the smart business. But speed and agility are essential for staying relevant and competing effectively in a highly competitive market, and a proven cloud platform is crucial for leveraging advanced technologies such as AI into easily consumable solutions that developers can quickly and effectively incorporate. Studies by IDC show that using a PaaS environment can reduce the development cycle of applications by 30% to 50%.
IDC’s interviewed ISVs are choosing various routes to enable the smart business. Those with on-site solutions have either expanded them to the cloud by creating new digital applications, modernizing existing applications, or incorporating smart capabilities into their solutions. Typically, newer ISVs move straight into the cloud-based SaaS business model to take full advantage of shorter development cycles, lower deployment costs, and a financial model pay-as-you-go. Whatever their preferred route, they all share two key features–a commitment to the cloud’s future and relying on a proven cloud platform to build smart applications of the next generation.