Report: On-prem software demand still on par with SaaS
by Paul Davenport Paul Davenport on

While the popular narrative around enterprise software has long been centered on the ascension of SaaS, on-premises software demand continues to be strong with 92 percent of companies reporting their on-premise software sales are growing.

According to the findings of a new Dimensional Research report from Replicated, demand for on-premises software is equally as strong as cloud solutions, as many businesses are still beholden to on-premises systems to meet security, regulatory, and compliance requirements.

While the vast majority of businesses that offer on-premises solutions are seeing sales grow, only 80 percent of the providers polled offer both SaaS and on-premise software, with 57 percent of SaaS-only businesses admitting that they are missing out on revenue channels because of their limited product scope.

Of the companies deploying on-premises solutions, 90 percent are using containers in production environments, while 95 percent of respondents will have container-based deployments available in the near future if they aren’t already.

That said, 85 percent of companies reported that their customers needed help with container-based installations, with multiple roles within the customer success workflow dedicated toward deployment. What’s more, only 16 percent of businesses can successfully install a new container-based application in under a week, despite all the roles involved in launching a successful installation.

Without visibility, deployment remains complicated

These latest findings align with similar trends that despite an increase in digital transformation that’s caused a jump in cloud migration in the recent past, businesses aren’t abandoning their corporate data centers en masse in favor of cloud-only solutions.

According to the findings of the recent 2021 AFCOM Data Center Report, many enterprises plan to continue running bulk dedicated resources on-premises or in colocation facilities, as 60 percent of respondents indicated they are “repatriating” some workloads from the cloud back to on-premise today. That said, enterprise IT are doing things differently and using a smarter toolset today than they have in the past that is making both data center and network management more seamless and efficient.

New software like data center infrastructure management (DCIM) solutions, for instance, are being deployed to help automate data center maintenance to help IT teams free up resources to focus on larger enterprise transformations—ie. Steering the successful deployment of new containerized software on a more manageable timeline.

Enterprise IT teams are also increasingly conscious of the connections between their on-premises software, corporate data centers, their knowledge workers, and the cloud environments delivering SaaS workflows. Now more than ever, application performance and workflow access hinges on strong network connectivity, regardless of whether traffic comes from the cloud or a corporate data center.

The takeaway from all of this data is that enterprise IT teams need to work much more strategically today than they have in the past to manage the diverse array of tools essential to driving business success. Regardless of where apps live or are hosted, enterprise IT teams need to always be able to zero-in on performance issues quickly to speed up resolution and stay on track with their company’s transformation goals.


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Filed Under: Industry Insights

Tags: network performance monitoring , network management , network performance , colocoation , hybrid cloud , enterprise cloud , enterprise data center , cloud visibility , cloud transformation , cloud computing , cloud , SaaS , software , data center , on premises