Companies Focused on Software and Development Outperform Peers
September 22, 2014

Aruna Ravichandran
CA Technologies

"Leaders" who are investing in new innovation and development capabilities are growing revenue at more than twice the rate of "Laggards", creating an Application Divide in the marketplace, according to a global study commissioned by CA Technologies entitled How to Survive and Thrive in the Application Economy.

The Leaders, as identified in the study, overwhelmingly realize that software and application development is core to their future success. In fact, the study found that over 50 percent of companies surveyed either have made, or will make in the next year, an acquisition specifically to add talent and strengthen their development capabilities.

In addition to revenue growth, Leaders are experiencing 68 percent higher profit growth and are seeing more than 50 percent new business growth from new products and services.

Among the specific investments being made by Leaders, the study uncovered the following:

■ Innovation is at the core of their success: almost half (49 percent) of the “Leaders” have adopted DevOps methodologies and technologies to speed application delivery, versus only 6 percent of the “Laggards.”

■ Security is seen as a business enabler – not as a roadblock to growth: 47 percent of “Leaders” are experiencing increased revenue from new services enabled by security. In fact, the study predicts that one-quarter of all IT spending will be devoted to security over the next three years.

■ Leaders are embracing technology as a business enabler, deploying software to manage their IT investments more strategically and aligned with business goals.

■ A key driver of success for Leaders is the adoption of mobility as an enterprise-wide strategy, with clear evidence of increased customer satisfaction and faster time-to-market.

"There is clear evidence that enterprises of all sizes, in all markets, have to embrace the application economy and place software development and delivery at the center of their business strategy," said John Michelsen, CTO, CA Technologies. "Business success is tied to application performance, and the ability of a business to drive growth is no longer just about the product or service they deliver, but increasingly about a complete software-driven experience."

Additional findings of the study include:

■ Enterprises responding to the rapid changes brought about by the accelerating application economy are bringing more software development back in-house (from 33 percent to 44 percent).

■ 94 percent of Line of Business (LOB) executives are facing increased pressure to release applications more quickly to satisfy consumer demand, with 51 percent of businesses surveyed having released at least four customer-facing applications in the last year alone.

■ Despite this rate of application delivery, only 15 percent of LOB executives are completely satisfied with IT’s speed in delivering new applications or services.

■ As a result, 88 percent of enterprises surveyed are planning to adopt DevOps to increase application delivery.

■ Businesses face internal obstacles in addressing the application economy:
- 25 percent of the senior IT leaders surveyed said that there was a lack of understanding of the impact and benefits of the application economy at the senior level.
- 26 percent said there was a lack of knowledge and skills.
- 24 percent said that there were cultural issues.


Survey Methodology: Vanson Bourne conducted the CA Technologies-sponsored study of 1,450 senior IT leaders, more than half of which include C-level executives, EVPs, GMs, Presidents, Managing Partners and CSOs, from financial services, healthcare, manufacturing, retail, telecommunications and media/entertainment across 13 countries.

Aruna Ravichandran is VP, Product & Solutions Marketing, DevOps, CA Technologies
Share this

Industry News

July 18, 2024

Mission Cloud announced the launch of Mission Cloud Engagements - DevOps, a platform designed to transform how businesses manage and execute their AWS DevOps projects.

July 18, 2024

Accelario announces the release of its free TDM solution, including database virtualization and data anonymization.

July 18, 2024

RAVEL (formerly StratusCore) introduced RAVEL Orchestrate’s new Bare Metal Build Station functionality, which empowers IT and DevOps teams in SMBs or enterprises to intelligently prepare and deploy customized images to any physical machine connected to a network.

July 17, 2024

OpenText™ announced its solution to speed the triage and remediation of vulnerabilities throughout the stages of code development, OpenText Fortify Aviator, an AI-powered code security solution, saves developers significant time by enabling faster and easier auditing and remediation of static application security testing (SAST) vulnerabilities—all within a single solution​.

July 17, 2024

Tricentis announced the acquisition of SeaLights, a SaaS-based, software quality intelligence platform.

July 17, 2024

CAST is now available as software as a service (SaaS).

July 16, 2024

OpenText announced its latest product innovations with Cloud Editions (CE) 24.3.

July 16, 2024

Red Hat introduced new capabilities and enhancements for Red Hat OpenShift, the hybrid cloud application platform powered by Kubernetes, as well as the general availability of Red Hat Advanced Cluster Security Cloud Service.

July 16, 2024

DevEx Connect launched as a community-driven independent research, analyst and events organization focusing on everything under the DevEx umbrella, including DevOps, SRE and Platform Engineering.

July 15, 2024

Elastic announced support for Amazon Bedrock-hosted models in Elasticsearch Open Inference API and Playground.

July 11, 2024

Progress announced new and powerful enhancements in the latest release of Progress® LoadMaster® 360, its cloud-based unified application delivery platform. These enhancements help organizations protect their web applications against increasingly sophisticated cyberattacks and provide customers with an optimal application experience.

July 11, 2024

Virtusa announced a strategic partnership with Quality Clouds, a provider of SaaS governance solutions for Salesforce and ServiceNow platforms.

July 11, 2024

Zesty launched its newest offering, Commitment Manager for Amazon RDS (Relational Database Service).

July 10, 2024

MacStadium unveiled Orka Desktop, a free, local macOS virtualization tool.