Change is eternal in life, nature, business, and technology and you only have 3 options: 1) Adapt; 2) Move, or 3) Die. I learned this truism in my 7th grade from my social studies class regarding animals response to ecological change, but the same is true for changes in our business environment. The technology environment has forever been changed by CLOUD (IaaS, PaaS, and SaaS). The software business and the systems integration (SI) will never be the same and is now presented with 3 simple options: 1) Adapt; 2) Move, or 3) Die.
As humans, especially business people, engineers, etc. who populate a lot of technology field, we believe we can overcome or stem the tide. While this may work for short term or against small storms of change, it will not defeat real, substantial change any more than you can push back on walls of water from hurricanes.
IBM recognizes the power and importance of Cloud, even if it got off to slow start. Look at the emphasis. Less than 10% of IBM’s revenue is now from hardware. At the same time, everything from IBM is now on the cloud. IBM is even beating back its latest foe – Amazon Web Services (AWS). IBM Beats Amazon In 12-Month Cloud Revenue, $15.1 Billion To $14.5 Billion.
SAP has made a massive shift around SaaS and is adapting. In 2013, Jon Reed, noted that even SAP executives would love to go on selling traditional on-premise perpetual licenses when he paraphrases the executive with ‘Hey, if we could continue to sell software to customers the way we’ve sold it to them for the last 40 years, we would. But they want new options.’ (more from Jon Reed’s Diginomica blog). Fast forward to 2016 and about 80% of SAP’s revenue is from 4 acquired SaaS products: SuccessFactors, Fieldglass, Concur, and Ariba. If SAP could figure out S/4 HANA cloud, they might even become a dominant SaaS ERP player.
Cloud and specifically SaaS to the software industry is a category 5 hurricane force of change driving a wall of water. Remember when virtualization was only for non-proction. Now, most systems depend on virtualization.
Moving and adapting take time. So while almost everything will go cloud, it will take time. It will have to make IT and financial sense to move. The argument that some applications will not run well on the cloud will be a moot point when they are rewritten for the cloud.
The hurricane of cloud in all forms is
coming here. What are you doing to make sure your ready to move or adapt (and not die).