The software business leaders were able to make the best use of the massive penetration of technologies into human life over the past few years.
As the time passed, some of the technologies lost their charm, while others moved far ahead. Besides, new technologies emerged to accommodate shifting customer demand.
According to Gartner, by 2020, 80 percent of software vendors will be using a consumption-based model.
The traditional software market hit a blow since many IT solution vendors started offering “as a Service” solutions.
According to Gartner, by 2020, 80 percent of software vendors will be using a consumption-based model.
“as a Service” frees end-user from software subscription license, maintenance contracts and hardware expenses, while offering the comfort of a rented infrastructure.
This has put pressure on the traditional software companies to look for other options to generate revenue.
Companies like IBM, Microsoft and Oracle will continue to fight declining license and maintenance adoption by augmenting their portfolios and offering flexible deployment options for customers, says research firm TBR. These enterprise IT vendors also work to scale their cloud businesses.
Software license customers are deploying licenses in cloud environments through Bring Your Own License (BYOL) services.
TBR predicts that BYOL models will marginally support 2017 license and maintenance sales. But, by 2022, 25 percent of remaining software licenses will be deployed off premises.
In 2017, it is expected that SDN displacement of traditional networking solutions will fail to take place in 2017.
Customers adopt SDN solutions as complementary networking tools for specific use cases such as security and management in the short term.
The downward trend will be because vendors remain in a period of technological advancement and business validation
Year 2017 is also expected to see higher enterprise adopters for robust applications for unifying business data, layering third-party data and lacing analytics.
Across 2017, TBR expects smaller vendors adapting to this trend with networked, analytics-enabled business platforms including Birst and Domo, the BI and data visualization platform.
Enterprises will look to unify their business data to create a single source of the truth and gain insight from analytics that span various business functions, rather than a single department or data set.
TBR says that the adoption of these expansive platforms will drive double-digit growth for both Birst and Domo.
Similarly, SAP’s business-unifying strategies around SAP Business Suite 4 SAP HANA and Digital Boardroom will reverse declining Analytics & Insights revenue from 2016.
