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Enterprise Software Snapshot 2016

 

December 23, 2016

We predicted a significant impact of Social, Mobile, Analytics, Cloud and the Internet of Things technology in the Enteprise Software and Enterprise Resource Planning (ERP) markets in 2016. We predicted that what was once thought to be “modern” will be exposed as “legacy”. The value calculus for enterprise software would change in dramatic fashion.

Prediction Accuracy

Unfortunately, we were about 2/3 accurate on the 7 predictions made:

  1. The convergence of technologies, sometimes known as SMACT or “Nexus of Forces” or “The Third Platform” is dramatically changing the nature of enterprise software. This will result in many legacy vendors losing market share to upstarts. Expect to see dismall results from many ERP vendors who will not be able to acquire companies fast enough to show overall growth. Results: Major ERP vendors showed anemic organic growth , SaaS vendors continue to grow, but ERP vendors are keeping up the acquisition spree ~66%
  2. Public cloud enterprise software adoption increases as buyers recognize improved security and usability, but concerns about security, lock-in and TCO will restrict growth. Businesses are more likely to adopt non-core enterprise cloud application. There will be some cloud consolidation but it’s unlikely that the number of SaaS ERP vendors will go down given the maturity of open source and cloud platforms. Results: Yes ~100%
  3. Integrated social features become more critical in 2016 for buyers. Traditional collaboration tools will lose market share to enterprise software firms that provide integral social capabilities for organizational collaboration. Results: The increase in social features in enterprise software & adoption of Slack confirms ~100%
  4. Enterprise Software becomes mobile-friendly. There have been numerous initiatives for mobile-friendly with excellent results. Results: General enterprise software facades have improved for mobile, while analytics has improved dramatically ~50%
  5. User Experience becomes critically important in enterprise software. Learning complex software was once the cost of doing business. Results: Partly ~33%
  6. Big data and the Internet of Things will become integral to enterprise software – just not this year. Enterprise software vendors will acquire big data startups or leverage open source. Standards will emerge so vendors with proprietary solutions will lose out in the long run. Results: unknown until next year, but looks promising
  7. The ERP integration myth is exposed. One of the ERP value propositions was the notion of “seamless integration” within the suite. This turns out to be mostly fiction because legacy vendors built code quickly and acquired other providers. Results: has migrated from myth to open secret, so not entirely recognized by all ~50%
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Doug Hadden

Doug Hadden

Executive Vice President, Innovation at FreeBalance
Doug is responsible for identifying new global markets, new technologies and trends, and new and enhanced internal processes. Doug leads a cross-functional international team that is responsible for developing product prototypes and innovative go-to-market strategies.

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