The cloud dominates, according to an ISG study

Demand in the USA for cloud-based solutions continues to grow during the Covid-19 pandemic, as businesses recognize the need to better address disruption by turning to software and infrastructure as services. Specifically, in the second quarter of 2021, the annual value of cloud-based, as-a-service contracts increased by 33%, reaching $5.9 billion.

According to “2021 ISG Provider Lens™ Enterprise Application-as-a-Service Platforms report”, the pandemic led to even greater adoption of the cloud, as businesses rushed to adopt remote work, improving the digital experience of their customers. In fact, cloud applications were the only IT segment that did not show signs of downtrend due to the pandemic and continued to grow, according to ISG.

The pandemic forced businesses to really understand that they need to be much more flexible to successfully handle major challenges, including the closure of large facilities and units, travel restrictions, safety and health in the workplace, and other disruptions to business operations. Cloud-based applications and solutions allow employees to work from anywhere, while helping businesses become more flexible and resilient to the constant changes that markets undergo in a dynamic environment.

More specifically, and as an example of importance and global interest, businesses in the USA show a clear preference for next-generation SAAS solutions, implementing technologies that include artificial intelligence, predictive analytics, edge computing and Internet of Things support, according to the ISG survey.

Shifting customer demands have led to a significant change in the design of enterprise apps, with SaaS providers building platforms with cloud-native technology, user-centered design, and modern APIs that facilitate integration. As cloud native apps meet the dynamic workload and data requirements perfectly, they have led to increased demand for connected cloud infrastructure.

Advanced APIs contribute to the development of SaaS. These APIs allow channel partners and integrators to easily and efficiently combine sets of applications to meet specific customer needs. In this way, providers are able to focus on their own core capabilities and develop features that will make them stand out.

Demand for industry-specific SaaS solutions is a significant area of growth, according to the survey. Providers aim to meet the demand for vertical SaaS solutions in supply chain management and ERP.