According to a 2021 Statista report, global expenditure in enterprise IT is expected to grow at a CAGR of 13.2% and will reach $599 billion in 2021. The report also suggests that enterprise IT experienced the highest growth of all IT spends. Furthermore, the market revenue of enterprise software development firms more than doubled during the last decade.
Of course, the economic limitations due to the global pandemic negatively affected spending in enterprise IT too. The sector experienced negative growth in 2020. However, enterprise IT was one of the fastest sectors on the road to recovery. Revenues from enterprise software have already surpassed pre-Covid levels. Business process management (BPM), enterprise resource planning (ERP) software, and customer relationship management (CRM) were the biggest growth drivers in enterprise IT.
2021 was the year of recovery from Covid in enterprise IT. Enterprises spent most of their budget optimizing their existing tools, technology, and workflows to prepare for the changing IT landscape. 2022 will be the year when enterprises will be fully prepared and ready to innovate.
Innovations in enterprise IT will have to take the post-pandemic world into account due to a change in customers’ and employees’ expectations. Traditionally, enterprises have been slow in reacting to market changes and upcoming technology; 2022 might break the trend for good. Let’s see what 2022 has in sleeve for enterprise IT.
Read on: What Is Enterprise Software And How Is It Useful?
AI will play a larger role in learning customers’ expectations
2020 made making growth predictions solely on historical data a risky endeavor. While many business models thrived under the lockdown arrangements of 2020, most saw their revenue free fall. They learned the lesson the hard way: they have to look beyond the traditional means of gathering business intelligence (BI) for predictive analysis. Modern BI tools incorporate data from various AI-based tools in addition to historical data to draw growth projections.
According to a 2021 IDC report, a majority of enterprises are thinking of bringing AI into their IT workflows to improve efficiency and reduce costs.
DevSecOps will take a new turn
As enterprises rush to accelerate their DevOps pipelines to stay relevant in an increasingly online world, they’ll encounter new forms of security threats amidst global regulations and compliances on data security. According to a report, DevSecOps teams are twice as prepared to respond to a cyberattack than DevOps teams with traditional security values. Rushed development cycles mean their traditional approach to application security (AppSec) won’t pertain. They have to innovate to bring security as left of the DevOps pipeline as possible.
If 2018 was the year of DevSecOps, 2022 will be the year when enterprise IT rediscovered DevSecOps.
SDN adoption will reach new heights
As enterprises bring more of their functions online to cater to increased instances of their audience being virtual, the load on enterprise IT networks is at an all-time high. Networking companies are experiencing the biggest demand curve since the dot-com boom. Networking equipment was already in short supply due to trade sanctions and tariffs on China. The pandemic-induced labor crisis, chip shortage, and container disparity is only making the situation worse and delaying modernization efforts in enterprise IT.
To circumvent the shortage, enterprises will follow in the footsteps of tech firms and look at software-defined networking (SDN) vendors for networking solutions. Once they’re in the SDN wagon, it’ll be harder for them to go back to traditional networking. The cost and security benefits of SDN over traditional networking modules are enormous. In addition, SDNs are agile, perform better, and don’t come with vendor lock-ins.
According to a 2020 Statista report, the $8 billion global SDN market is expected to reach $43 billion in 2027. The highest growth was encountered in the US, Canada, Japan, China, and Germany.
Content delivery networks (CDNs) will be smarter
With enterprises migrating more of their application stack to the cloud, their reliance on content delivery networks will be enormous. To keep up with the demand, CDN vendors would not only have to optimize their existing network to carry more traffic and improve performance, but they would also have to invest a lot in adding hardware to their infrastructure.
In order for vendors to sustain their businesses, they’ll have to find workarounds to make the most of their existing infrastructure without compromising performance and capacity projections. While cloud vendors have unlimited capital to expand their CDN interest, traditional enterprises have a limited IT budget. According to an article, enterprises are betting on AI and ML to deliver better performance at an affordable cost with their content delivery networks. They are reluctant to invest in new hardware due to pandemic-induced budget constraints.
Many will have their first taste of quantum computing
With Quantum Computing as a Service (QCaaS) becoming a thing and companies testing its implication to prove a business case, we’ll start to see many new firms join the bandwagon. It looks like enterprises will get their first taste of quantum computing in 2022.
Custom enterprise software development will be more relevant
As enterprises bring more of their processes online, they’ll need to upgrade their delivery mechanism and management modules. Current ERP solutions on the market are designed with tech firms and startups in mind. They don’t offer enough in terms of customizability that traditional enterprises expect when undergoing rapid modernization. It’s common for enterprises to use more than one ERP solution for their multitiered needs. ERP solutions from different vendors don’t allow interoperability of data, making management of IT functions a nightmare. In addition, compliance requirements make it difficult for enterprises to move to a SaaS-based ERP solution.
To address these shortcomings, more enterprises are likely to go for custom software development in 2022.
Rare Crew makes custom ERP solutions with Vault
Rare Crew’s flagship ERP software, Vault, is unlike any other solution on the market. It’s fully customizable in the form of various modules and each module enables a distinct business function. In addition, it provides enterprises with its custom module development services. With the right features in place, Vault is a one-stop solution for all your enterprise needs meaning you won’t need anything else.
Switching to our ERP solution means you don’t have to give up any of your existing tools and processes. Vault has first-class integration with third party tools that are integral to your workflow. We strive to make it easy for you to manage your IT functions so that you can follow your business goals without distraction.
In addition to our flagship software solution, Rare Crew offers custom enterprise software development services. Whatever you choose, Rare Crew and Vault want to make it easy for you to manage your business.