Nowadays the economic situation has firmly moved on to the uncertainty stage. Most economists agree that this situation is likely to continue in the foreseeable future. In this case companies should learn to respond quickly. Software is here to help with standardization and business process management. But it’s not that easy though.
Size does matter
Enterprise applications development is usually very costly, implying no just monetary, but also time investments. Client companies have to carefully plan the whole process to avoid falling out of schedule, which results in overspendings and risks of failure. In their turn software development companies face volatile business environment conditions along with the increasing difficulty of systems. According to Standish Group Chaos report, the size of IT-projects and the execution approach directly impact on the risks of delay and overspending.
The same trend was described in McKinsey article about Delivering large-scale IT projects on time, on budget, and on value.
The new generation
The recurring economic events whip up the IT revolution, developing the need for the Third generation Enterprise software and then contributing to its creation.
Third generation apps features:
- Microservice-based architecture. Using small and quickly-developed applications allows to reduce software development projects cost and deliver business apps at a quick rate.
- Containerization. Applications containerization allows to deliver apps upon request with no additional expenses on configuring. Such approach helps to reduce programming environment maintenance and servers running costs.
- Automated updating. This feature is most notable in IT-giants cases. Facebook update software on their servers several times a day. Google is also known for frequent software updates.
- Apps interaction. Interaction of applications of different vendors, located in separate data-centers, allows to solve difficult tasks by combining the existing IT-solutions.
- Internet of things. IoT is a network of sensors and other physical devices located remotely from servers, but able to collect and exchange data across existing network infrastructure.
- Big Data. This concept describes any voluminous amount of data too large or complex for traditional data processing, but has the potential to be mined for information. Using the combination of approaches within Big Data concept allows to gain business insight for data-based decision making.
Microservice architecture is designed to cope with failures and adapt to any new tasks.
The Agile solution
Over 90% of software development projects are under the risk of changing technical task during project execution. Introduction of Agile methodology helps to deal with the ambiguity of business environment.
DevOps (development и operations) and Continuous Delivery technologies combined with adaptive management allows to better foresee the work output, as well as reduce the risks of falling out of schedule, budget and value.
The change in pricing policy
A lifecycle of an Enterprise application is usually from 2 to 5 years. The setup of 1 and 2 generation devices created a Vendor lock-in effect, rendering customer companies unable to stop working with the service provider. It resulted in unlimited inflation of prices. The customers paid for the software of which they needed only 5-15% of functionality.
The pricing of Third generation apps is formed based on the resource base and the number of end-users. For example Amazon Web Services and many other similar applications. Third generation approach allows organizations to better plan budget and to stop using certain applications, when they are no longer needed. The output is
The future is now
Joining forces in management and cutting-edge technologies allows to provide exclusive applications for specific business tasks within a few months. Under this approach companies can forecast the return on investment in software development.
That is why Perfico is applying Third generation approach in software development, using the experience of the leading world-renowned companies.
Our experience over the years has shown that using the advanced methodologies, e.g. Agile, DevOps и Continuous Delivery in software development guarantees delivering IT projects on time, on budget, and on value, with minimal risks for the customer.
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