The Software Industry Trends That Matter In 2023
In 2023, the software industry will continue to grow and expand its share of overall tech market spend; challenges exist, however. Growth alone is no longer enough, as shifts in investment capital are forcing new emphasis on managing profits and operational costs. Geopolitics will influence changes, as well, such as more local hosting options. And emerging trends in automation, industry clouds, and sustainability will take center stage in the coming year.
Forrester unpacked the nine most important software trends in 2023 and what they mean for technology executives in our new report. Here is a preview of three of them:
- The shift to SaaS (software as a service) continues. The pressure to move to SaaS is perhaps best felt by the increase of on-premises maintenance fees. While frustrating, these price hikes are unavoidable. Technology executives should reevaluate staying on-premises or look into alternative third-party maintenance options.
- Changes in investment capital put pressure on profits. Rather than sheer growth, the emphasis is now on profits, customer retention, and efficiency. Streamlining efforts such as layoffs and refocusing products to core business lines are signals of this shift. What it means is that SaaS vendors will continue to find ways to minimize costs, such as reducing some of their high-cost marketing, increasing automation, and decreasing the prevalence of special deals for first-time buyers.
- Emphasis on sustainability will increase. Transparency around sustainability is becoming an expectation of both customers and employees. Firms will focus on their own sustainability initiatives as well as software to help their customers do the same. Choosing a vendor that aligns with their corporate sustainability goals should be part of customers’ selection criteria.
To learn more, read our report here: The Top Software Trends In 2023 And What They Mean For Technology Executives.