Companies spend on cloud computing products and services will be US$20 billion this year and should reach US$150 billion by 2020. As the market for cloud computing matures, incumbents and innovators will need to adapt their go-to-market systems to meet the needs of the next generation of buyers.
Disruptive technologies tend to rewrite the rules of profitable growth and competitive advantage in a sector. SaaS is no exception. But we expect that three fundamentals of success in software-platform power, scale economics and product stickiness-will continue to apply to software as a service as they have in packaged software. In addition, one new factor-gaining deep customer insights and finding ways to profitably act on them-will be crucial.
Companies are facing a choice: defend their turf and risk being bypassed or transform their business and embrace the SaaS model. Most are making the smart choice to experiment and evolve, using the three strategies: Commit to a strategic path and align resources through Flex pricing, attack adjacency and better in the cloud functionality, Embrace customer insight and intimacy, and Organize for innovation.
IA-Cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand.
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