The Enterprise Software Market is Changing…Are You Ready?

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Waking up late is not something that I like, especially when I had the best intentions of getting an early start this morning and really putting in a ton of focus both to my morning rituals and to the entire work day before a 3 Day Weekend…but waking up feeling under the weather does that to you.  I was out looking for a topic and it would appear that it is either a slow news week in Technology or my Google Search Mojo is starting to wear off but I did find an interesting series of stats that comes direct from Gartner Research.

The trends revealed in an article over at Forbes.com puts some weight behind a trend that I have been seeing with my clients for the past couple of years and that is the Enterprise Software Market is changing dramatically from the domain of internal IT Staff to an Outsourced or SaaS model increasingly fast.  According to Gartner, categories like CRM will grow three times as fast in the cloud as they will on premise!

What really impressed me was the inclusion of data from Cisco about the SMB markets that have 1-4 employees as there is rarely real data that can come from the Research Industry giant that can be applied to the 99.93% of companies that have less than 1000 employees in the US.

The ability of any organization to almost instantly achieve full market equality with companies vastly larger by leveraging the power and scalability of Cloud Computing especially in the Enterprise Application Space is a HUGE advantage.  I truly think that much of the FUD (Fear, Uncertainty and Doubt) surrounding Cloud Computing is starting to wear off.  The harsh reality is these small companies that account for more than 25% of the Canadian Economy (and it is similar in other Western Nations), is that they do not have the capital or staff to fund and maintain advanced security infrastructure, big IT Projects and develop cutting edge technology that allows them to be competitive with companies 100’s of times their size.

Sure there is a legitimate concern for “giving” all of your data to an outside company.  There is a risk that this data could be compromised through a security breach but there is strong evidence that this is far less likely to happen in the hands of a reputable Cloud Service Provider than it is in the hands of an SMB that has made little or no investment in Security for their critical data.

The addition of services like Microsoft’s Office 365 are changing the way that businesses are looking at their Office Productivity Apps.  Soon to be gone are the days of Company X still working on MS Office 2000 while others are upgrading to the latest version of Office (currently 2013 and fully integrated with Office 365).  Even Adobe has gotten into the mix offering their Creative Suite as a Subscription based service.

For IT Professionals that are in the Mid Sized Market and are looking across all of these radical changes and wondering where do they fit in?  I would say that as long as there is focus on skills development…your job is likely to be safe.  In working with hundreds of customers over the past several years…there is still the need for a Technology Leader in a company even when the Infrastructure becomes a Managed Service.  Change your own Value Proposition to include the managing of Business Relations and Technology and that will ensure that you are far more valuable than just a Coder or Wire Puller!

Cheers,

Chris J Powell

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Posted on February 15, 2013 in Cloud Computing

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