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August 22, 2012

Cloud, Mobility and Open Source Drive AD Market: Gartner

Cloud, mobility and open source will drive application development (AD) market growth to exceed $9 billion by the end of the year, according to a new forecast issued by Gartner (News - Alert). The worldwide application development software market is expected to increase by 1.8 percent over 2011, according to Gartner.

AD growth in Australia is expected to reach approximately $160 million in 2012, up five percent over 2011. Evolving software delivery models, new development methodologies, emerging mobile application development and open source software are driving such growth, according to Asheesh Raina, principal research analyst at Gartner.

“Application modernization and increasing agility will continue to be a solid driver for AD spending, apart from other emerging dynamics of cloud, mobility and social computing,” Raina said. “These emerging trends are directing AD demand towards newer architectures, programming languages, business model and user skills.”

In fact, cloud is changing the way applications are designed, tested and deployed, resulting in a significant shift in AD priorities, according to a new Gartner report, “Market Trends: Application Development Software, Worldwide, 2012-2016.”

While cost is a major driver, agility, flexibility and speed to deploy new applications are also driving AD growth; in fact, 90 percent of large, mainstream enterprises and government agencies will use some aspect of cloud computing by 2015, Gartner said.

“The trend is compelling enough to force traditional AD vendors to ‘cloud-enable’ their existing offerings and position them as a service to be delivered through the cloud,” Raina added. “AD for cloud demands rapid deployment, a high focus on user experience and access to highly elastic resources for software testing, while requiring comparatively less underlying infrastructure for developing applications.”

In addition, Gartner predicts that mobile AD projects targeting smartphones and tablets will outnumber native PC projects by a ratio of 4:1 by 2015. Emerging mobile applications, systems and devices are transforming the AD space rapidly, and are one of the top three CIO priorities at the enterprise level. Gartner research found that CIOs expect more than 20 percent of their employees to use tablets instead of laptops by 2013, accelerating the process of change as AD tools and applications evolve to address the requirements of these new devices.

Also driving the AD shift, Gartner expects open source software to continue to broaden its presence and create pressure on market leaders during the next three to five years, especially as open source becomes a key element of the software quality landscape beyond the developer level. It predicts that at least 70 percent of new enterprise Java applications will be deployed on an open source Java application server by the end of 2017.

“Open source software tools will continue to erode revenue for some AD categories in design, testing and Web development,” Raina explained. “This is being driven primarily by the success of Eclipse and NetBeans, as well as by overall revitalisation of the market by new small software providers looking for technical and market disruptive approaches for offering products. Limited budgets and economic conditions compelling enough to focus on cost reduction, also fuel the use of open-source software in various development projects.”

With the driving shift toward the cloud and mobility, coupled with the uncertainty of deployment be sure to check out the Cloud Communications Expo, collocated with ITEXPO West 2012, taking place Oct 2-5 in Austin, TX, where industry leaders and thinkers will convene to discuss everything cloud- related.




Want to learn more about cloud communications? Then be sure to attend Cloud Communications Expo, collocated with ITEXPO West 2012 taking place Oct 2-5, in Austin, TX.  Stay in touch with everything happening at Cloud Communications Expo. Follow us on Twitter.




Edited by Brooke Neuman
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