On-premises software installation is taking its last breath. In no time, the cloud will completely dominate the software delivery market.

Why are cloud computing delivery models so definitely set for supremacy? They are simply more effective – for the software provider and the customer – than any other distribution method available.

The benefits and applications are limitless, and more and more companies are leaning in and pushing their competitors to do the same.

This represents a major change in delivery methodology, and software suppliers will need to jump on board to remain relevant in the modern age.

the future is now
This change is happening as we speak. Salesforce invented the software-as-a-service model in the early 2000s, and since then there has been a slow jumble of progress — from Amazon to Microsoft and beyond. While we are still in the early years of this transformation, SaaS and the cloud are now integral to the change.

What really indicates the impending dominance of the cloud is how it has begun to overcome its significant obstacles.

One of those hurdles was the matter of security. Not only have cloud providers become more robust in their security implementations, but most data breaches in recent years have not targeted cloud-based systems. Almost all data leaks have come from enterprise-managed in-house systems.

Next, there are concerns over cloud infrastructure and geographic coverage. Cloud providers have taken some time to offer a reliable cloud ready for real-time applications. But now, the big cloud providers like Amazon, Microsoft and Google have solid and reliable cloud offerings available everywhere in the developed world.

The last hurdle is around the public interest. Cloud computing delivery models have not yet reached critical mass, but they are on their way. According to 451 research, 90% of organizations will use cloud computing services in the next few years, with 60% saying most of their IT will be off-premises.

get ready, get ready
The adoption of cloud computing has undergone a paradigm shift as it brings economy of scale and professional IT to every company, regardless of size. Software solutions that were once very expensive will be perfectly achievable for smaller companies – no IT department required.

Software suppliers need to prepare themselves to take advantage of this impending change.
However, how they do so depends largely on their starting point. As in all those moments where fundamental technology changes, the effect is proportional to the size of existing software applications, and it is always in favor of new ones.

But switching to cloud-based offerings is well worth the effort. Here are some of the benefits of cloud-based software delivery:

1. Allows a greater focus on core business:

Companies have long used third-party software to complement proprietary solutions, but use third-party modules to do so in an “on-premises” style requires extensive study and understanding of the Software maintained.

However, in a cloud environment, the supplier of third-party modules places their own software in the cloud. Those using that software are then relieved of the responsibility of maintaining it, instead freeing up their time to focus on their own offerings.

2. Updates software automatically:

Historically, software providers had no way of encouraging their users to upgrade their software to the latest version, meaning providers had to keep customers happy. Support for multiple versions will have to continue.

However, cloud offerings give providers the ability to send automatic updates to all users. This means that cloud software users stay up to date, and cloud providers can focus on a small number of software versions.

3. Eliminates customers’

reliance on infrastructure size: In all “average complexity” software applications, the vendor will set minimum hardware requirements that the buyer needs to respect. There is always a safety margin in the minimum hardware requirements, allowing peak usage without performance problems.

However, it is common to find situations where buyers ignore recommendations and incidents occur due to performance issues during peak hours. In a cloud environment, the level of security is set by the vendor, thereby eliminating the possibility of various incidents.

4. Simplifies big data optimization:

In some cases, companies can improve their software by collecting and using data generated by their users. Company leaders can detect a large number of usage patterns and use machine learning algorithms to build better solutions.

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