Democratization of Enterprise Software

A massive change in enterprise software industry is under way. Democratization of Enterprise software is happening much faster than expected at almost every level of spectrum. Along with it, the enterprise software industry is changing drastically.

About three months ago, I had two (yes, two!) eureka moments pretty much in an interval of a few days. First was this article by Prof. Vivek Wadhwa that mentioned how the IT industry was being democratized by smaller companies with products that did a few things really well and used APIs to connect with other such small but very specialized products. It means that the customization that used to pay the bills for most traditional IT companies like IBM, Accenture and TCS are having a very hard time growing and even sustaining their current sizes.

The second one was a chat with a potential investor who mentioned how IT industry is moving towards these companies that have specialized intellectual property and understanding of business processes as their USP rather than expert man power. This also means that smaller, agile companies will have an edge over behemoths that take months to get started on a project. Today, traction comes in spikes rather than ramps and speed of execution is super critical.

I think we have a very clear idea of how the next generation Enterprise software companies would look like and are positioned really well to capitalize on this trend.

Next, I will discuss how enterprise databases are being democratized and the opportunities for startups that open up with that. Stay tuned.

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