Despite industry-wide layoffs in the tech industry, there is still a lack of available talent to update and expand application software, which is why researchers at IDC expect continued growth in enterprise software sales. The market intelligence firm estimates that 2022 enterprise application revenue reached nearly $280 billion and expects it to grow at a compound annual growth rate (CAGR) of 8% by 2026. And of that, the firm anticipates that cloud software will take up about two-thirds, whether cloud-native, migrated, or converted on-premises systems.
Businesses can no longer rely on outdated systems and technical debt to stay competitive, as innovations come at a fever pitch to keep up with demand for speed, scalability, and resiliency. They must instead invest in their digital transformations to stay up-to-date, including deploying automation and leveraging their wide swaths of data. Also, SaaS and cloud applications are growing ever more essential to stay current in any business, and more organizations are adopting low-cost and no-code methodologies to create new products. More reliance on application programming interfaces (APIs) to connect applications and systems is expected as well.