cloud

Technology has changed many industries in amazing ways. Transportation, manufacturing, healthcare—all have been transformed in the last decade due to increased collaboration, communication, and real-time access to contextual data facilitated by Cloud technologies, mobility, social networks, and analytics technologies. Despite being key enablers to advancement, technology software providers themselves have not always been at the forefront of using technology to transform their businesses from the inside out. However, pressure to transform is coming from all sides, most notably the outside–in. Customers are demanding change with their wallets. Cloud software is growing at more than five times the rate of the traditional packaged software market. By 2018, $1 of every $5 spent on software, and $1 of every $4 spent on applications, will be consumed via the cloud.

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With all major players in the software industry transitioning to the Cloud in some manner, the vast majority of new software companies entering the market are doing so as “providers of Cloud services”. As a result, the $368 billion software industry is changing forever, and packaged software and perpetual license revenue is in permanent decline.

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The hottest topic in the tech industry is the ‘Internet of Things’ (IoT) – the idea that nearly every object and device will be connected via high speed networks in the not too distant future. These connected things will produce valuable information which will enable companies to better understand how their products and services are being used so they can better serve their customers, and be in a better position to gain a competitive advantage.

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As part of my family’s annual exercise, I’ve spent the last couple of weekends doing some spring cleaning. As I remove loads and loads of accumulated junk at home, I cannot but wish I had stayed lean and had to manage less. This is a sentiment I’m sure most IT managers echo when they look at their portfolio. Cloud and subscription however, are changing that. Let us examine the effects of going to cloud licensing in the context of spring cleaning: staying lean, nimble and flexible.

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Cloud is changing the way Software Publishers (ISVs) are monetizing their offerings. An increasing amount of workload is now moving from on-premise to cloud. This transition is driven by two factors: what customers and/or competition are dictating, and the need for ISVs to expand their reach to new segments. As a result, more and more ISVs are making the inevitable move to cloud.

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Software consumption is continually changing. Users expect an evolving hyper-connected solution while their consumption needs demand licensing flexibility. As a result, providers need to offer scalable and flexible solutions now more than ever.

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