As we wrap up 2016, we look back on all the changes and growth that took place in the IT market and how it affected software development. So, where is the software development market headed in 2017? Let’s evaluate some of our top predictions.
1. The cloud movement is in full effect, and Microsoft will continue to lead the way.
As a longtime partner with Microsoft, this year we decided to take our partnership to a deeper level by joining the Microsoft Partner Network. We aren’t the only ones.
According to IDC, 86% of business customers buy through channel partners for IT products and services. That is a huge opportunity because the cloud market is forecasted by IDC to be $500B by 2020.
Looking closer at the services lifecycle, reselling Office 365 provides stickiness with customers, but the profit margins aren’t enough. MSPs who truly want to drive profitability will partner with a software development firm to offer migration services, cloud conversations, and integrations—combined with Office 365.
2. Rise in the adoption of a DevOps and Agile culture.
The number of businesses moving to a DevOps and Agile culture will continue to rise and make a significant impact in 2017. According to RightScale, DevOps adoption has increased from 66 percent in 2015 to 74 percent in 2016. Many businesses are moving in this direction because DevOps and Agile create a better customer experience, providing greater functionality, new features, and frequent application upgrades. Statistics show that when customers feel valued and appreciated, it drives greater customer loyalty and profitability.
3. MSPs will offer more robust services.
In order to stay relevant, MSPs will need to add more services to their line card and move to a solutions-selling mindset. Software development services are at the top of the list because your clients are requesting web design, integration services, and cloud migrations. If you can’t provide these services and you’re unwilling to partner with a software development firm who can help, your customers will go with a competitor who can. A strategic partnership with a software development firm will enable MSPs to drive new revenue, which is both cost effective and low risk when done right. MSPs who add software development services to their suite of services, will expand their revenue stream and fuel business growth.
4. Businesses will continue to shift to a Software as a Service (SaaS) model.
More businesses are subscribing to SaaS because it provides comprehensive benefits for their business across multiple divisions within the organization. By 2020, penetration of SaaS versus traditional software deployment will be over 25%, Forbes is forecasting. For businesses who have not migrated to a SaaS model, it is time to jump on the train or get left in the dark.
5. More strategic Application Programming Interfaces (API) integrations.
Ensuring your IT systems work together seamlessly is a must-have for businesses who want to thrive in 2017. The world of big data and analytics will get a huge boost from open APIs. Because APIs make it so easy for data sources to connect, more and more people are using open APIs because of the convenience it provides. APIs can help drive revenue growth, add capacity, enhance service offerings, improve responsiveness, and increase customer loyalty for customers who have connected to your API.
We are excited about what the IT market will bring in 2017 and the impact it will have on software development. Technology is constantly changing and evolving, providing those willing to be agile with a very bright future.