Update On The Cloud And Its Interest In Verticalized Software

Economic choices are one of many considerations for companies. Many companies consider technical and organizational innovation as a key factor in their development and survival. These innovations have been mainly deployed in recent years in the IT sector and are at the origin of new organizational models. The “Cloud” and packaged applications are an illustration of this. We are also witnessing their rise in power, with a trend towards the verticalization of solutions. Adapt or perish? This question should occupy the minds of decision-makers in this ever-changing world.

Fortunately, specialized companies can support companies wishing to transform themselves in terms of advice and frame (e.g., Accenture, Projection, etc.), the definition of the target architecture, and operational implementation and outsourcing (Proxiteam, Ecritel, etc.).

1. Cloud software: definition

The Cloud designates an IT solution allowing storage and access to data hosted on an outsourced storage medium accessible from the Internet. This technique contrasts with the traditional use of the computer’s hard drive for data storage and access. Cloud software or “Software as a Service” can be defined as a computer application relying on Cloud resources to benefit from services owned and managed by third-party providers. Thus, any user can access the application remotely via a computer or a mobile device.

2. Development of Saas applications in BtoB

The advent of Data Centers at the turn of the year 2000, following the growing outsourcing of IT services by companies, favoured the conditions for developing Software as a Service application from 2010. Since then, the proportion of companies using Software in SaaS mode has steadily increased. It would be approximately 20% currently and should reach 50% soon, given the significant growth from which it benefits. The development of SaaS BtoB solutions is no stranger to this growth. The possibility of solutions adapting to a trade or an activity appears particularly attractive for companies.

3. Interest and limits of the packaged application

The packaged application has an undeniable interest. Financially, it can significantly reduce business costs. Whether we think of maintenance, the acquisition of storage equipment, or the upgrading of specific Software, many expenses are thus saved. In addition, Software hosted in the Cloud offers a wider deployment since it is accessible from the Internet. However, drawbacks remain, including security issues. These are also among the main concerns of companies. To this must be added the inevitable interruptions of service linked to human or natural causes. Finally, these solutions only sometimes make it possible to benefit from specific functionalities, the latter being underdeveloped.

4. The choice of verticalization

Having Software adapted to the activity is a guarantee of performance and stability. This is why it is advisable to prioritize functional packaged applications, which have proven themselves in specific sectors of activity. The principle of verticalization also makes it possible to improve solutions and make them consistent with good business practices. Such is the case of ERP software intended for the legal, medical, or agro-food professions, particularly given the solid regulatory pressure. This is also an example of PLM Cloud software dedicated to companies in the industry. It’s obvious. The complexity of specific business sectors cannot be grasped using traditional tools. The future, therefore, belongs to companies that opt ​​for verticalized Software.