2016 Internet Software & Services Outlook

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What crucial trends are driving the industry?

Today’s current environment for all players in the Internet Software and Services ecosystem is being driven by the increased usage of data. The massive global movement toward analytics in industries such as consumer packaged goods to retail marketing have demonstrated that data analytics is no longer something that is isolated to tech companies such as Google or Amazon. The embrace of data analytics is a result of the cloud computer capabilities that were not even available 5 years ago. From start-ups to well-established digital brands such as the Weather Channel, there has been a shift toward leveraging cloud computing to find operational efficiency, decrease costs and enhance analytical capabilities.

With this trend toward more data analytics being driven by the ubiquitous nature of cloud computing today, the internet software and services industry will have to continually adapt toward license or subscription business models that lead to annual or even bi-annual product improvements to meet consumer demand. Consumers will want to see improvements because the switching costs in a cloud based world are not as high as they previously were in an onsite serveror costly IT service environment. Internet software and security companies that are successful in meeting the consumer demands in this new world will be able to succeed since cloud computing has also led to more start-ups being created. The decreased costs to starting a company has led to a global entrepreneurial boon period that presents growth opportunities for the internet software and service industry.

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