The Future of Software

Welcome to The Business Web™

Let’s begin with a riddle: the future of software begins with the end of software. At least, the end of software as we have known it. Traditional client/server software is a dying breed, especially for IT organizations that want to actually contribute to the bottom line.

To understand the future of business software, look no further than the consumer Web. Just as consumer Web services such as Google, eBay, and Amazon.com are replacing packaged consumer software, business applications are increasingly moving to the Web. In 2005, Gartner estimated SaaS (software as a service) sales were five percent of total business software sales. In 2011, Gartner predicts that share will grow to 25 percent (Gartner, September 26, 2006).

Salesforce.com is leading the charge toward The Business Web. With the introduction of the Force.com platform and the AppExchange, salesforce.com again sent shockwaves through the software-as-usual world—and arguably initiated a new shift in the evolution of software.

How We Got Here

Any speculation about the future of software deserves at least a brief glance at the major shifts in its history, including:

  • A shift from the mainframe to client/server systems, resulting in a move from legacy systems to packaged enterprise systems.
  • The rise of the PC, resulting in unprecedented user productivity—as well as a proliferation of data islands.
  • The rise of the Internet and perpetual network access, which led to an information explosion and changed the way millions of people work, play, and shop.
  • The emergence of Web services standards and technologies such as multitenant architectures.
  • The move towards service oriented architecture (SOA) approaches by most major software vendors, making integration with back-end systems easier.
  • The emergence of the on-demand model, which shifted the software market from an ownership to a “rental” model, freeing businesses from ownership hassle and expense. Salesforce.com is one of the most successful examples of this model, with 35,300 customers and more than 575 applications.