Fast-paced development of the telecommunication industry transforms and expands the former boundaries of software development. Telecommunications are affordable and available from almost any computer. Information workers enjoy high-speed connections to the Internet at home and at work. Almost 300 million people worldwide are now accessing the Internet, using fast broadband connections and fueling the growth of social networking and business software applications. Penetration of broadband services is seen as a key for developing businesses all over the world. Fast Internet enables companies to use software applications for storing, editing and exchanging information online and accessing it anytime they need it.
Outsourcing development opened new opportunities for businesses. Business strategists started to pay more and more attention to outsourcing of non-core operations since the 1980s. In the early 2000s, IT outsourcing became a very important cost-cutting measure for thousands of companies. Today, it is increasingly viewed as a strategic planning and outcomes optimizing tool. A recent survey of American and European executives conducted by Accenture shows that 25% of respondents report first-day improvements in business processes with an outsourcing model. The benefits of outsourcing are incontestable: instead of building their own infrastructure and supporting it, companies outsource it to a third party and focus on the core of their businesses. They save on money, time and effort. As a form of outsourcing, on-demand software penetrates deeper into the way businesses are built nowadays.
The growth of popularity of Enterprise 2.0 on-demand software is remarkable. This growth is not gradual. The pace of on-demand software adoption grows each month and equals 150 % year-over-year, according to Saugatuck Technology research. On-demand software, or software delivered to the customer via the Internet as a service, turned out to be a revolutionary concept in the late 1990’s. Back then, it seemed unbelievable to replace the traditional on-premise software, which you have to buy and install on your computer, with a service. The situation has now changed as businesses and the software vendors serving them are serious about on-demand software delivery.In 2005, IDC announced in its report that on-demand software will represent more than 3.8% of all spending, or $10.7 billion by 2009. In 2006, on-demand software was announced to be the future of software development by many of the authoritative media, such as Forbes, the New York Times, EWeek, and BusinessWeek. Today, business magazines announce that on-demand software customers are becoming more comfortable with the model and that, according to recent research, nearly 36% of large and small companies are considering bringing software-as-a-service technologies into their organizations. About 80 percent of those considering it say they plan to adopt it within the next 12 months. Additionally, 90% of enterprises that are using on-demand software have already stated that they plan to expand their use. Today, we have a great number of examples of software delivered as a service. The applications range from project management to CRM services. Factors influencing the enterprise Why is software delivered as a service adopted by more and more companies all over the world? There are certain external and internal factors which influence the software development and the development of other industries. Here are 2 major external factors: