The Future of SaaS: What to Expect in Next 5 Years
Buckle your seatbelts, the cloud craze has just begun.
Oracle just released its Top 10 Cloud Predictions 2019 report forecasting the future of enterprise cloud by 2025. Not surprising, the findings suggest no slowing of cloud technology or its impact. What is surprising, however, is how few finance and technology leaders are actually prepared to manage the parade of SaaS into their companies.
We've talked about the importance of having an effective SaaS Management Process in place and the predictions prove that it's never too early to establish it in your organization. The next six years will show nothing less than the spectacular acceleration of more cloud use as companies design and develop new technologies, pricing and capabilities to feed the appetites of cloud-crazy companies.
It’s in this future reality – one where SaaS consumption is anything but gradual – that company leadership needs to be aware of what these predictions mean. Let's deep dive into three that will have profound effects on the way we do business.
Prediction #1: 80% of all enterprise (and mission-critical) workloads will move to the cloud.
The transitional effort will rely on tools to improve the flexibility, reliability and efficiency of this transition.
Enterprises’ massive consumption of cloud resources will continue as mission-critical applications (e.g., those apps that cannot afford to suffer downtime) will near-universally convert from on-premise, private data centers to the public cloud. This migration is a certainty, and not necessarily notable in terms of explosive SaaS use. What is notable is the accompanying surge of migration tools and supporting application use required to streamline the path to the cloud.
For IT, the transitional effort will rely on tools to improve the flexibility, reliability and efficiency of this transition. Companies will avoid resource-intensive hiring in favor of software applications for time and savings sake. But this comes with a cost: more unmanaged SaaS tools each posing cost, management and usage issues along with information security vulnerabilities. While new cloud tools may be an unavoidable part of the enterprise workload migration, it’s the periphery issues of cost and compliance that can get overlooked.
Prediction #2: AI (and emerging technologies) will double our productivity.
Globally, AI augmentation and automation technologies are driving massive human capital productivity and efficiency improvements.
AI’s emergence is not, by itself, of concern. But what AI’s incorporation into businesses represents may be. Corporate views on AI has shifted. No longer is it the shiny new toy, full of promise, but unfit for enterprise use. Globally, AI augmentation and automation technologies are driving massive human capital productivity and efficiency improvements.
Oracle reports that 89% of people use voice assistants for customer service, and 69% of enterprise customer service functions use AI-powered chatbots for anytime, anywhere connections. Improved and expanded data sets and less brittle tech have companies using AI to make decisions better and faster. Companies are watching complex decision improve and staff up-level while being freed up from routine work. These people are being redeployed into new work – and with machines and people working in concert, corporate productivity is skyrocketing.
Of course, experiencing software-led gains reinforces the need for more software. Newly empowered employees and businesses will lean even more on software capabilities to stay competitive with their hyper-productive peers.
Prediction #3: The [software] developer community will expand 10× and productivity will increase by 400%.
Expect the rate of software development and menu of attractive new apps for business and consumer markets to increase.
Application consumption and the demand for dev talent far outstrips supply. Oracle’s report notes how user counts on software development platform GitHub went from 5 million to 31 million between 2012 and 2018. The 36% CAGR is indicative of SaaS’ impressive takeover of corporate environments. And still, the market is woefully underserved.
In-demand talent means attractive jobs and perks. These will attract more people into the space, while next-generation tools, automation and improvements in coding and development tools will make development easier – and the dev community even more productive. Expect the rate of software development and menu of attractive new apps for business and consumer markets to increase.
What's the next smartest move for companies?
The journey to the cloud is well underway, but for far too many companies, the means to manage SaaS tools lacks.
We’re past the days of SaaS trialing, gradual implementation and moderate adoption. Oracle acknowledges a tipping point; enterprises have now outpaced consumers in their adoption of emerging cloud technologies and are past the experimenting phase. Instead, prolonged use means environments where the staff is unrestrained in gobbling up the latest and greatest tool.
Consequently, companies are already swimming in dozens or hundreds of tools, eaten up by eager employees and pushed by savvy sales teams. The journey to the cloud is well underway, but for far too many companies, the means to manage SaaS tools lacks.
To safely, profitably and securely navigate the all-SaaS-everything world that Oracle describes, Cleanshelf offers a fully-automated SaaS spend optimization solution.
Our technology directly integrates with financial systems and cloud subscription accounts to help companies – from enterprises to startups – track SaaS spend and maximize the ROI of cloud software subscriptions.
Visibility and accountability of Every SaaS Dollar spent? Check.
Actionable data to negotiate renewals? Check.
Continuous oversight and license usage insight and optimization? Check.
SOC 2 security and compliance? Check.
Cleanshelf is the leading SaaS spend optimization solution focused exclusively on tracking, controlling, and benchmarking subscription SaaS applications. Cleanshelf’s cloud technologies help companies save up to 30% on their SaaS spending by automatically identifying unused, underused, or unmanaged licenses and subscriptions.
Headquartered in San Francisco, CA, Cleanshelf serves dozens of clients, including Drawbridge, Revinate, Dynamic Signal, Qumulo, and Service Rocket.