By 2024, 2025, and 2026, businesses will place a high priority on modular applications that provide functionality through API/event-first business components to stay ahead of the fast-paced innovation landscape. Technology and service providers will revamp their offerings to ensure compatibility with composable application architecture.
Timeline
2024 | 2025 | 2026 |
50% of the Industry Cloud Platform providers will leverage composability to develop vertical offerings and enable adaptable customer deployments. | 60% percent of upcoming SaaS designs will incorporate both UI-first and API-first access, reflecting the growing trend of preparing for composability as a standard trait in cloud applications. 50% of the providers of Industry Cloud Platforms will utilize composability to develop vertical offerings and facilitate customizable deployments that can adapt to unique customer requirements. | All of the leading 20 cloud platform and SaaS providers will establish component marketplaces, providing customers with the ability to implement their composable strategies. These providers will differentiate themselves based on the quality, convenience, and security of their marketplace offerings. As composable application development gains traction, leading enterprise software providers will experience a slowdown in revenue growth. Mainstream business investment will shift towards more modular providers, reflecting the growing adoption of composable solutions. 60% percent of newly developed custom business applications will utilize reusable business services sourced from a shared curated component catalog or marketplace. |
Key Takeaways
In the era of digital business, technology providers and business leaders are closely connected, with business leaders actively involved in making technology decisions. They no longer solely rely on technology vendors or central IT for digital innovation. Business unit technologists are responsible for delivering digital capabilities and experiences that align with users' evolving needs and preferences.
To meet the growing demand for targeted digital innovation, technology capabilities must be flexible and adaptable to enable fast, secure, efficient, and personalized changes. Both technology providers and business users are turning to reusable and composable modularity to achieve this. In the pipeline of digital business engineering, technology providers and business technologists have complementary roles.
The traditional one-way relationship between technology providers and users must evolve into a bidirectional partnership through business-IT collaboration. This collaborative approach enhances the synergy between business and technology, fostering a more effective and responsive digital ecosystem.
Traditional Relationship & Bidirectional Partnership
Traditional models of technology acquisition have relied on vendors providing complete, monolithic commercial application suites or custom applications delivered by central IT or systems integrators. In these models, the business organization receives finalized applications and deploys them with minimal customization.^
However, empowered business organizations now seek more control over their digital experiences. They form partnerships with technology providers, including corporate IT, systems integrators, and application/platform vendors, to actively collaborate on the development of adaptable application assets, processes, and experiences.
These partnerships enable the creation of efficient and agile digital business experiences. Application products are transformed from fixed dedicated solutions to modular business innovation platforms. Low-code platforms and automation tools are used for flexible composition, while advanced API marketplaces ensure integrity and efficiency.
Embracing this strategic change requires cultural shift and determined leadership. Strategic leaders in IT, business, and vendor organizations must recognize and embrace the transition to modular architecture and composable application processes and experiences. Procurement of technology products will increasingly prioritize reuse and continuous change.
Product leaders should establish interactive relationships with customers by adopting composable modularity in their application and platform offerings. They need to prepare for the changing architecture and business models by incorporating marketplace services for governance and separating engineering practices for business components and application compositions.
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Source: justlowcode.com© & Gartner® 2024