Packaged software have been vital in offering customised solutions to business organisation irrespective of vertical. Cost reduction and business process efficiency have been prominent reasons which have driven adoption of packaged software.
Packaged Software Market Share Have Been Affected by Public and Private Cloud Based Models.
Packaged software have significance and expected to grow in verticals where data controllability, Security and protection is given lot of prominence. Though cost efficiency is the key reason driving cloud based models there are data security related concerns which makes adopting a cloud based model riskier for enterprises.
These drawbacks of cloud based model have made growth of packaged software to increase in verticals like financial services, retail and healthcare since control over data and data security plays crucial role as a result to avoid risk adoption of on premise packaged software is gaining significance in all verticals mentioned above.
North America holds the lion share in adoption of packaged software and Europe, South America, Asia Pacific being second, third, fourth positions respectively in adoption of packaged software.
North America, Europe, being regions with matured IT infrastructure the adoption towards cloud based model will gain prominence in the days to come due to cost effectiveness and no maintenance of data centre required.
Asia Pacific, South America being regions with developing IT infrastructure adoption of cloud based model is still a preference rather than priority. Hence adoption of on premise packaged software is expected to grow effectively in verticals like financial service, healthcare and retail segment in these region.
Enterprises Are Main Consumers And Financial Services, Healthcare and Retail Segment Have Been The Top Adopters Of Packaged Software.
Enterprises have been the main consumer of packaged software since data security and data controllability are the crucial factors impacting adoption of on premise packaged software over cloud based model.
Data breaches, cyber-attacks ,and hacktivism are the major threats that would question enterprises about security over data, this reason have made enterprise to maintain their own datacentres instead of depending cloud based models in which datacentre location is unknown.
In enterprises data accessibility and easy flow of data within organisation is given prime importance to ensure efficiency in meeting client requirements. As a result the adoption of on premise packaged software over cloud based model high compared to midsize and small businesses.
Financial service have witnessed a change in channel by customers to meet the financial solutions leading to which financial service have felt need to adapt technology in its process. Hence spending on software and IT infrastructure have increased in the recent days.
Emergence of smartphones have increased the dependence on digital channels like mobile banking ,online banking and mobile payments by customers to meet financial solution have made financial service to ensure quick and efficient flow of data in the organisation to meet customer urgency have made adoption of packaged software important.
Threats like data breaches and cyber-attacks have made data security a key priority in financial service.
Increased dependence of customers on digital channels have made financial services to upgrade their security software to ensure safe and secure transaction to customers.
Emergence of big data in health care system have made packaged software essential to ensure efficient data storage and management for better utilization of the data generated and take right decisions at the right time.
Increased demand for integration of health care system have made system integration essential to ensure easy accessibility of data, cost reduction in health care system have made adoption of on premise packaged software essential.
Clinical data protection plays a crucial role in adoption of security packaged software to ensure protection from threats like data breaches and cyber-attacks.
Retail segment have also played a key role in adoption of packaged software due emergence of mobile point of sale, mobile payments.