Reaching for the cloud
One of the main catalysts of software spending continues to be the migration from on-site systems to remote, cloud-based alternatives, as organisations look to upgrade their digital capabilities and improve their competitive advantage.
Cloud-based software has been the lifeblood of organisations needing to adjust to the fast-changing circumstances of the past year. As well as facilitating communication and collaboration between disparate colleagues, it has allowed them to adjust operational processes to accommodate disrupted supply chains, distribution channels and workforces.
Accelerating trends already underway, COVID-19 forced organisations to undergo years of digital transformation in just a matter of months. Cloud was a key enabler of this and helped them adapt to and capitalise on the changes the pandemic brought about, without the need for expensive infrastructure or investment.
Gartner predicts that this transformation will need to continue and that plans will need to accelerate by a further five years over the next three years, if organisations are to survive – and thrive – in a world of hybrid working environments and digitally-driven customer journeys.
This presents growth opportunities for all cloud software vendors, but especially those offering Software-as-a-Service (SaaS) – so productivity and collaboration tools, customer experience and servicing solutions, and operational CRM, finance and HR systems.
And, as they become more accessible to organisations migrating to the cloud, virtual applications that increase data storage and interrogation capabilities offer new artificial intelligence and machine learning solutions, and that facilitate intelligent process automation, are also likely to see growth.
The culmination of this will be – according to Gartner – that cloud’s share of total global enterprise IT spending grows to 14.2 per cent by 2024, up from 9.1 per cent in 2020.