Tech Trends – The Software Industry
PwC’s Technology Institute’s report the Global 100 Software Leaders investigates the trends that are shaping the software industry.
SaaS (software-as-a-service), mobile device proliferation, consumerization of IT are trends that are forcing software companies to re-think everything about product development, pricing, marketing, and delivery. Competition for the talent in this evolving market place has reached the proportions of a “talent war”.
“As we all know, cloud computing enables a new business model—the selling of software as a service, either by subscription or as a true pay-as-you-go usage model. Add the explosion of mobile devices, the ubiquity of wireless networks and the consumerisation of IT, and you get further innovation—and confusion—in business models.” (PwC Global 100 software leaders)
Strategies and opportunities for this evolving landscape include affordable mobile apps run from the enterprise or public cloud; a multitude of delivery methods; a proliferation of services including PaaS, IaaS, and Xaas for example data analytics; a focus on achieving customer outcomes rather than simply the delivery of technology.
SaaS revenue is predicted to grow at 17.5% compounded annual rate, reaching 24% of total software revenue by 2016 according to IDC. The top ten SaaS revenues amongst the Global 100 for 2011 are led by Salesforce.com at $1,848M which is 92% of the software revenue total. Intuit and Cisco follow up with 38.7% and 46.3% of software revenues coming from SaaS. Google’s share of SaaS revenues reaches 80.3%, and Blackboard 96.2%.
The top one hundred software leaders globally are led by Microsoft whose 2011 SaaS revenues hit $788M, only 1.4% of the $57,668.40M in software revenue. The next three of the top one hundred are: IBM, Oracle, and SAP, all of which have total SaaS revenues at less than 2% of software revenue.
“In an age of easy-to-use cloud services and low-cost apps, software vendors have realized the CIO is no longer the only customer to satisfy; they must engage the actual user if they want to keep enterprise sales.” (PwC Global 100 software leaders)
Consumeriztion of IT has repercussions such as the ease of substitution of services by consumers, which means companies must strive for and attain customer satisfaction and loyalty in order to be successful. Customer engagement via advertising, social media, user communities is a fundamental strategy to ensure customer service and satisfaction as well as to attract partners and future customers.
Learn more about the North America 100 software companies, their challenges and opportunities, go to PwC’s website and download: “Global 100 Software Leaders”.
Recruiting Tech Talent
The report mentions that “Large vendors are expanding to regions beyond their typical recruitment grounds in search of top-flight engineers, programmers, and executives. Companies are using their checkbooks and stock market valuations to acquire companies for their technology as well as their talented people.” (PwC Global 100 software leaders)
Unfortunately, the report does not explore recruitment strategies any further. Tech recruiting strategies are as varied as tech companies out there but certain trends and strategies are proven: creating a unique culture, offering perks and a top notch workplace, partnering with a specialized recruiter, casting a wide net, etc.
The growth in revenue from SaaS and mobile and the consumerisation of IT mirrors the growth in jobs and the demand for related tech skills.
SaaS job opportunities are unsurprisingly on the rise. Inexistent before 2006, SaaS jobs have increased on Indeed.com quadrupling in 2013 from 2009.
Mobile job opportunities are in greater supply, with an almost equally impressive growth in demand. According to Indeed.com, 3% of job postings are in mobile.
To research job trends for other sectors and specialties, go to Indeed’s job trend tracking, and type in the skills or industry that interest you.
Founded in Silicon Valley in 1996, Redfish Technology is an award-winning talent acquisition firm specializing in high tech and clean tech sectors. Partnering with growth mode companies, small and large, Redfish staffs executive functions and builds out the teams below. The company provides services nationwide and has offices in Silicon Valley, the East Coast, and Sun Valley.