Trends in Enterprise Software
A report by ResearchAndMarkets forecasts that the global enterprise software market will reach a value of $404 billion by 2028. This growth is largely attributed to the increasing reliance of enterprises on technology to improve efficiency and drive profits.
In response, enterprise software developers are continuously challenged to create faster and more advanced solutions that meet the evolving needs of businesses. As technology continues to play a critical role in the success of enterprises, the demand for innovative enterprise software solutions is expected to remain high.
This post explores the latest trends in enterprise software that are poised to impact the developer ecosystem, as well as how businesses adopt and invest in software through 2023 and beyond.
What do we mean by enterprise software?
Enterprise software, or enterprise application software, refers to the programs designed to meet the unique needs of organizations, particularly large businesses and government entities.
These applications and tools may range from customer relationship management (CRM) and enterprise resource planning (ERP) systems to supply chain management (SCM), project management, or human resources management (HRM).
Such software solutions are custom-made to accommodate unique business processes while improving productivity, efficiency, and decision-making within the organization.
The top enterprise software trends in 2023
According to Gartner, there will be a 9.3% increase in global spending on software services in 2023, up from 7.1% in 2022. This indicates that businesses continue to invest more in software solutions to improve their operations and stay competitive in the market.
Here are the best enterprise applications trends shaping the ecosystem.
1. Emphasis on competitive edge
Companies are increasingly investing in enterprise software solutions that enable them to differentiate themselves from competitors. This trend highlights the importance of using software to drive innovation and growth in a highly competitive business environment.
Examples of enterprise software solutions that will support this trend might include customer relationship management (CRM) systems that provide real-time customer data and insights, supply chain management (SCM) platforms that optimize inventory and logistics, or business intelligence (BI) tools that enable companies to make data-driven decisions.
As a business, your competitive edge gives you an advantage over your competitors. Naturally, you would want this advantage (secret sauce) to get better for your customers. One way to make your competitive advantage better is by implementing modernized custom applications that allows you to have control over what happens to your secret sauce. In other words, the best custom software should make it so easy to do what your competitors can’t.
As companies increasingly seek to optimize their workflows, enterprise software developers are turning to a variety of powerful automation tools such as Power Automate, Zapier, and Tray.io.
These revolutionary tools offer advanced features that automate various aspects of the workflow, enabling developers to ship products more quickly.
3. Responsive User Interface (UI)
With the proliferation of mobile devices and the rising trend of remote work, it has become more important than ever for enterprise software to be accessible from anywhere, on any device. Users should be able to easily access and use the software on various devices, without having to deal with annoying things like awkward scrolling, zooming, or resizing issues.
In practice, a responsive UI can involve various design techniques, such as using flexible grids, scaling images and typography, and adapting layouts to different screen sizes. The goal is to create a design that adjusts smoothly to any screen size, without sacrificing usability or readability.
According to datareportal, a global digital insights company, mobile users account for 53.2% of internet traffic. This means that mobile devices are a more common choice. Therefore developing your enterprise apps with a responsive UI is key in getting customers to like your products. Developers use software like webtonative to convert websites into mobile-responsive apps.
4. Commoditized capabilities
Instead of commoditizing apps, you should integrate commoditize capabilities or system abilities so to speak. The process of commoditizing software refers to making it more and more indistinguishable from others. This outcome is typically not desirable, as it diminishes the value of the software and the organizational brand.
By commoditizing applications, users, including customers and partners, may have difficulty differentiating them from other applications. Instead, focusing on integrating commoditized capabilities such as making the system more accessible and user-friendly can enhance the value of the software without sacrificing its distinctiveness.
5. Cloud-based PaaS services
Product-as-a-Service (PaaS) platforms are allowing enterprises to quickly host, build and deploy apps. Gartner forecasts a 23% increase in end-user spending on cloud-based PaaS by the end of 2023.
Businesses go where the money is and PaaS is where users are spending their money on. However, security is also a major factor in this trend. Since cloud-based PaaS services handle a lot of user data, using multiple public cloud-based services is risky since security won’t be centralized.
Businesses will have to choose a cloud-based service that specializes in their core functionality. It’s important to be careful not to use so many multiple public cloud service providers as this can lead to complexities.
SecDevOps is a development model that prioritizes security as the first step in the Software Development Life Cycle (SDLC).
In a survey conducted by Devoteam, security operations were identified as the top priority, followed by business operations, during the development process.
As the security of an enterprise’s infrastructure is crucial for the smooth functioning of the business, companies will continue to spend money to incorporate security in their SDLC.
7. Low-code and no-code development
This is a top enterprise application development trend. It signifies a cultural shift in the developer world where engineers write little or no code at all while developing software.
Businesses and developers alike are starting to embrace this approach since it costs less and saves time. According to Gartner, the low-code development market is expected to pass $26 billion in 2023, an increase of over 19% from 2022. This means that low-code development platforms will continue to emerge and get better to help developers build high-productivity enterprise applications fast.
8. Blockchain on the rise
According to a study by CasperLabs, a blockchain software company, 90% of businesses in the UK, US, & China have adopted business apps blockchain technology in some capacity.
The same study also found that 87% of global business leaders are likely to invest in blockchain by the end of 2023. This type of transformation will garner attention and many enterprise apps will begin to adopt blockchain technology – especially payment platforms – if they haven’t already.
9. Artificial intelligence & Machine Learning(AI/ML)
A study by Deloitte reveals that half of the surveyed executives from leading global firms have plans to expand their adoption of Artificial Intelligence (AI). This trend reflects the growing recognition of the compelling benefits of AI.
Machine learning, which underpins AI, has been a key enabler for this success, as it allows AI applications to learn from data and continuously improve their performance.
However, despite the potential benefits, there are also challenges associated with AI adoption, such as the need for specialized talent and concerns around ethics and transparency. Companies need to address these challenges in order to fully realize the true potential of AI in enterprise software.
10. The rise of Progressive Web Apps
This trend is driven by the need for businesses to deliver a high-quality user experience across multiple devices and platforms.
A Progressive Web App (PWA) is an application built using web technologies, runs in a browser and can be added to the home screen without the need to be distributed through native app stores, although it can be included in them.
Progressive web apps are a newer trend in mobile and web app development, and they offer several benefits such as cross-platform compatibility, faster loading times, and the ability to work offline. They are also easier to develop and maintain than native mobile apps.
The PWA market is expected to reach a value of $10.77 billion by the end of 2023. Meanwhile Google has revealed that installations of PWAs in desktops have increased by 270% since 2021. These two pieces of data suggest that this trend will continue to go up.
More enterprise software trends worth taking note of:
- IoT Software Development: With the proliferation of IoT devices, enterprises are investing in IoT software development to connect, manage, analyze , and even commoditize the data generated by these devices.
- Automated Code Reviews: Automated code reviews are becoming more popular in enterprise software development as they can save time and improve code quality.
- Shortage of Developers: The shortage of skilled software developers is a major challenge for enterprises as they struggle to find the right talent for their projects.
- Containerization: Enterprise applications are increasingly packaged in lightweight containers.
- Microservices: Enterprise applications are increasingly being broken down into smaller, independent services that can be developed, deployed, and scaled independently.
- Voice-enabled Enterprise Software: Many organizations are beginning to require that their applications be integrated with voice features.
- Virtual Realty, Augmented Reality and Mixed Reality: Enterprises have started to demand immersive and interactive experiences for their customers and employees.
The enterprise software ecosystem is set to undergo significant changes as these enterprise application trends continue to gain momentum. The increasing prominence of Big Data, adoption of AI, automation, and cloud computing, among others, is driving the need for developers to expand their skillsets and keep pace with the rapid pace of change. As businesses seek to leverage these technologies to streamline operations, enhance customer experiences, and drive growth, we can expect to see increased investment in enterprise software, and more organizations outsourcing to specialized providers.
However, the pace of adoption may vary across different industries, with some proving more receptive to change than others, depending on factors such as the complexity of their operations and the regulatory environment.
Regardless of the pace of adoption, the overarching trend is clear: the future of enterprise software development lies in staying agile, being proactive in embracing new technologies, and constantly evolving to meet the needs of businesses and customers alike. The opportunities and challenges presented by these enterprise technology trends will require a diverse range of expertise and a global perspective.