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5 Predictions for the Enterprise Software Market in 2014

Jyoti Bansal

AppDynamics announced our 2014 predictions for the enterprise software market:

1. Enterprise IT will model Web companies, becoming more agile to expedite application deployment

To remain competitive and facilitate the increased pace of innovation in the enterprise, IT departments will retool to learn and adopt software development principles and processes from leading Web companies such as Google, Amazon and Netflix - which deliver innovation in days versus weeks - rather than from traditional vendors like IBM, Oracle and SAP.

This will allow enterprises to accelerate the delivery of applications to stay competitive in global markets, moving to weekly application release cycles instead of monthly or quarterly cycles and accepting the risks that come with a higher pace of change. Automated application testing and deployment will mean more repeatable processes, less manual effort and more predictable results.

2. "Bite-sized" applications will bypass IT teams

IT teams will be frequently bypassed as "bite-sized" applications that are refreshed often, delivered from the cloud and consumed across multiple device types, start to replace the traditional, rigid, "system-of-record" application suite.

3. Enterprises will require a different type of accountability across development and operations teams

Enterprises will measure their agility and commercial success based on shared key performance indicators (KPIs) such as productivity or revenue across teams, so that everyone is aligned and focused on what matters — the business.

Traditionally, enterprises have compensated development teams based on the delivery of new software features and the frequency at which they delivered them. Conversely, companies have measured operations teams based on ability to maintain application availability, health and uptime (e.g. 99.99 percent) rather than on the introduction of change and risk.

In 2014, enterprises will start to hold DevOps accountable to the same KPIs. Shared metrics will provide a new level of transparency and accountability, so that development and operations teams will know the exact impact their actions have on the business.

4. Enterprises will move to elastic production applications built for the cloud

In 2014, enterprise use of the public cloud will finally move from development and test applications to elastic production applications built for the cloud. Enterprises will begin using Amazon Web Services for elastic production applications, making them more accessible, more deployable and smarter in the cloud, using auto-scaling and auto-remediation capabilities.

These changes will allow enterprises to scale vertically and horizontally automatically and cost-efficiently, as demand for their business services fluctuates over time. This elasticity will also allow enterprises to avoid the high cost of over-provisioning resources ahead of time.

5. Enterprises will begin to focus on mobile-first applications and the end-user experience

IT will begin to shift focus from back-end services to mobile performance and the end-user experience. Enterprise IT will begin to measure customer success in using applications and evaluate the business implications of application performance.

Jyoti Bansal is Founder and CEO of AppDynamics.

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

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Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

5 Predictions for the Enterprise Software Market in 2014

Jyoti Bansal

AppDynamics announced our 2014 predictions for the enterprise software market:

1. Enterprise IT will model Web companies, becoming more agile to expedite application deployment

To remain competitive and facilitate the increased pace of innovation in the enterprise, IT departments will retool to learn and adopt software development principles and processes from leading Web companies such as Google, Amazon and Netflix - which deliver innovation in days versus weeks - rather than from traditional vendors like IBM, Oracle and SAP.

This will allow enterprises to accelerate the delivery of applications to stay competitive in global markets, moving to weekly application release cycles instead of monthly or quarterly cycles and accepting the risks that come with a higher pace of change. Automated application testing and deployment will mean more repeatable processes, less manual effort and more predictable results.

2. "Bite-sized" applications will bypass IT teams

IT teams will be frequently bypassed as "bite-sized" applications that are refreshed often, delivered from the cloud and consumed across multiple device types, start to replace the traditional, rigid, "system-of-record" application suite.

3. Enterprises will require a different type of accountability across development and operations teams

Enterprises will measure their agility and commercial success based on shared key performance indicators (KPIs) such as productivity or revenue across teams, so that everyone is aligned and focused on what matters — the business.

Traditionally, enterprises have compensated development teams based on the delivery of new software features and the frequency at which they delivered them. Conversely, companies have measured operations teams based on ability to maintain application availability, health and uptime (e.g. 99.99 percent) rather than on the introduction of change and risk.

In 2014, enterprises will start to hold DevOps accountable to the same KPIs. Shared metrics will provide a new level of transparency and accountability, so that development and operations teams will know the exact impact their actions have on the business.

4. Enterprises will move to elastic production applications built for the cloud

In 2014, enterprise use of the public cloud will finally move from development and test applications to elastic production applications built for the cloud. Enterprises will begin using Amazon Web Services for elastic production applications, making them more accessible, more deployable and smarter in the cloud, using auto-scaling and auto-remediation capabilities.

These changes will allow enterprises to scale vertically and horizontally automatically and cost-efficiently, as demand for their business services fluctuates over time. This elasticity will also allow enterprises to avoid the high cost of over-provisioning resources ahead of time.

5. Enterprises will begin to focus on mobile-first applications and the end-user experience

IT will begin to shift focus from back-end services to mobile performance and the end-user experience. Enterprise IT will begin to measure customer success in using applications and evaluate the business implications of application performance.

Jyoti Bansal is Founder and CEO of AppDynamics.

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...