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

The Latest

January 17, 2019

To better align business and IT objectives, enterprise organizations should focus on the core "problems" that individual business units face today in driving out real consumer value. Until the roadblocks and inhibitors — and, ultimately, the resultant technical debt — are removed from the equation, large enterprise organizations will continue struggling to succeed ...

January 16, 2019

Technical debt is what results when legacy platforms or highly integrated and dependent systems and processes inhibit large enterprise organizations from meeting the needs of internal business stakeholders. In many cases, the core objectives that drive real, monetizable business value are not aligned to the esoteric IT goals of "automation" and "Agile development." This creates a fundamental disconnect between business and IT ...

January 14, 2019

Budget season is an important time of the year for businesses because it gives senior IT and security leaders time to reflect on what went right this year and what initiatives need to be given priority in the new year. Recent research from Threat Stack shows security budgets are expected to increase by 19 percent over the next two years, but business leaders are still facing challenges determining where to allocate this budget in the face of rapidly evolving infrastructure ...

January 10, 2019

As organizations of all sizes are embracing hybrid and multi-cloud infrastructures, they are experiencing the many benefits of a more agile, distributed and high-speed environment where new applications and services can be built and delivered in days and weeks, rather than months and years. But as the adoption of these next generation architectures continues to grow, so do the complexities of securing the cloud workloads running on them ...

January 09, 2019

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 9, the final installment, covers microservices, containers and APIs ...

January 08, 2019

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 8, covers microservices and containers ...

January 07, 2019

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 7, covers the Cloud ...

December 20, 2018

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 6, covers DevOps Analytics, including AI and Machine Learning ...

December 19, 2018

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 5 is all about testing ...

December 18, 2018

DEVOPSdigest invited DevOps experts for their predictions on how DevOps and related technologies will evolve and impact business in 2019. Part 4 covers Agile, CI/CD and automation ...

Share this