Over the past 20 years, the IT industry has grown by betting onthe standardization of processes and slowly evolved into Enterprise BusinessSuites like SAP. Innovation was nurtured by startup culture, incubatingbest-of-breed solutions consolidated by major players.
Although standardization benefits were evident, the chaotic evolution of technologies and consulting practices conveyed increased complexity and costly systems integration challenges that compromised the companies’ agility to respond to market threats and hyper competition.
Local and global enterprises are tired to pay high maintenance fees and get too little in return, drained by the extent of consulting services perpetrated in collision with the autocratic IT departments trapped on the complexity crafted over time with every technology evolution.
Enterprise Software giants made revenue targets by exploiting the Basket Approach pushing CFOs to buy more for a larger discount. But themarket penetration for thousands of dollars per user is reaching a point of saturation and if software incumbents don’t change its ways, they will soon become a software maintenance business.
During the next 10 years, constant change and the evolution of globalization will force the IT industry to morph into simpler models of licensing and software packaging based on enterprise services that customers can buy on demand and pay as utilities. This trend will open the opportunity for new business models, blurring the lines between software and services.
The true ubiquity of the internet brought by wireless technology combined with powerful pocket-size computers will socialize the consumption of services and information, revolutionizing the IT industry as radically as Web2.0 technologies empowered consumers.