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In the article Sid mentions that "according to research, by 2019 80 cents of every dollar spent on software will go to on premises or single tenant software."

In the article Sid mentions that "according to research, by 2019 80 cents of every dollar spent on software will go to on premises or single tenant software." Does anyone know which research he's quoting?

nzoschke 10y ago
I'd love to know the source too. But this matches what I am seeing right now as well as predicting for the future. SaaS is a powerful distribution model but IaaS has gotten so good that it's in many ways easier to run many small things than one big thing. And when you run many small things huge benefits arise: * security and isolation. Single tenant by default. * control. Upgrade when it's convenient for your company, not your provider. * Cost efficiency. Freemium SaaS requires burning VC cash. Open source + self serve demo doesn't * customization. Set your own feature flags or add your own patches to fit the software to your business Everything is cyclical. I think "install this software on your [cloud] computer" is going to be a big trend again.
- willow9886 10y ago
  Well said. We're also seeing greater demand now for our on premise FOSS software than ever before in the last 7 years.
- tomschlick 10y ago
  Yup, this is why at work we have our multi-tenant SaaS using a different database for each tenant. That way if they want to split to self/dedicated-cloud hosting later down the road we can move them without any hassle. Edit: I describe our thought process here if it's useful to anyone else: https://tomschlick.com/2015/11/29/lessons-from-building-multi-tenant-apps-part-1-databases https://tomschlick.com/2015/11/29/lessons-from-building-mult...
- agibsonccc 10y ago
  On prem is the only option for us. Developers don't want to pay (and I don't blame them as a dev) but the people who DO want to pay want everything behind the firewall still. Hybrid cloud is sort of being looked at but the rest of the world is still happy being on prem. Certain workloads have to be behind the firewall. That being said, docker and the like is making this easier.
sytse 10y ago
This is the quote: "By 2019, the cloud software model will account for $1 of every $4.59 spent on software." — IDC Worldwide SaaS and Cloud Software 2015–2019 Forecast and 2014 Vendor Shares
- willow9886 10y ago
  Thank you!
superuser2 10y ago
Not data, but for anyone who finds this surprising: I'm going to guess the vast majority of software spending by dollars is on Microsoft, Oracle, SAP, RedHat, etc server products running in closets at traditional small and medium businesses. Outside the tech world, it's a good bet that any given business has a Windows Server variant with Exchange onsite (little battery UPS likely, fancy fire suppression or HVAC pretty unlikely) and Office licenses on every desktop. If there's virtualization it's VMWare. If they allow telecommuting at all it's probably Citrix. The view of the tech world from SV, and from an IT contractor with a staff of ~45 acting as the IT department for ~500ish local firms in a sleepy Midwestern city, are very different.

nzoschke 10y ago

I'd love to know the source too. But this matches what I am seeing right now as well as predicting for the future. SaaS is a powerful distribution model but IaaS has gotten so good that it's in many ways easier to run many small things than one big thing. And when you run many small things huge benefits arise: * security and isolation. Single tenant by default. * control. Upgrade when it's convenient for your company, not your provider. * Cost efficiency. Freemium SaaS requires burning VC cash. Open source + self serve demo doesn't * customization. Set your own feature flags or add your own patches to fit the software to your business Everything is cyclical. I think "install this software on your [cloud] computer" is going to be a big trend again.

willow9886 10y ago
Well said. We're also seeing greater demand now for our on premise FOSS software than ever before in the last 7 years.
tomschlick 10y ago
Yup, this is why at work we have our multi-tenant SaaS using a different database for each tenant. That way if they want to split to self/dedicated-cloud hosting later down the road we can move them without any hassle. Edit: I describe our thought process here if it's useful to anyone else: https://tomschlick.com/2015/11/29/lessons-from-building-multi-tenant-apps-part-1-databases https://tomschlick.com/2015/11/29/lessons-from-building-mult...
agibsonccc 10y ago
On prem is the only option for us. Developers don't want to pay (and I don't blame them as a dev) but the people who DO want to pay want everything behind the firewall still. Hybrid cloud is sort of being looked at but the rest of the world is still happy being on prem. Certain workloads have to be behind the firewall. That being said, docker and the like is making this easier.

sytse 10y ago

This is the quote: "By 2019, the cloud software model will account for $1 of every $4.59 spent on software." — IDC Worldwide SaaS and Cloud Software 2015–2019 Forecast and 2014 Vendor Shares

willow9886 10y ago
Thank you!

superuser2 10y ago

Not data, but for anyone who finds this surprising: I'm going to guess the vast majority of software spending by dollars is on Microsoft, Oracle, SAP, RedHat, etc server products running in closets at traditional small and medium businesses. Outside the tech world, it's a good bet that any given business has a Windows Server variant with Exchange onsite (little battery UPS likely, fancy fire suppression or HVAC pretty unlikely) and Office licenses on every desktop. If there's virtualization it's VMWare. If they allow telecommuting at all it's probably Citrix. The view of the tech world from SV, and from an IT contractor with a staff of ~45 acting as the IT department for ~500ish local firms in a sleepy Midwestern city, are very different.