The software sector will keep expanding and increasing its proportion of the global IT market in 2023, but there are still obstacles to overcome. Growth is no longer sufficient on its own since changes in investment capital are placing a greater emphasis on controlling earnings and operating expenses. Geopolitics will also have an impact on changes, such as the availability of more local hosting possibilities. And in the upcoming year, growing trends in automation, industry clouds, and sustainability will command attention.
In our latest analysis, Forrester explored the nine key software trends for 2023 and what they signify for technology executives. A sample of three of them is shown below:
Software as a service (SaaS) usage is steadily increasing. The rise in on-premises maintenance costs is likely where the pressure to switch to SaaS is most obvious. These price increases are aggravating yet inevitable. Executives in the technology industry may reconsider staying on-site or investigate alternate third-party maintenance options.
Profits are under strain when investment capital fluctuates. The focus is now on earnings, customer retention, and efficiency rather than pure growth. Signals of this change include streamlining initiatives like layoffs and refocusing products on core business areas.
What it really means is that SaaS companies will keep looking for ways to cut expenses, like cutting back on some of their expensive marketing, upping automation, and limiting the frequency of special offers for first-time customers.
Sustainability will receive more attention. Customers and employees are beginning to expect sustainable transparency. The emphasis of businesses will be on both internal sustainability programs and software that enables customers to adopt similar practices. Customers should include in their selection criteria the requirement that the vendor they choose should support their business sustainability goals.
