Digital Transformation Trends That Will Dominate Software Businesses in 2021

The events of 2020 literally came out of nowhere. When the effects of the pandemic were first felt in mid-March, no one fully understood the impact they would have on society moving forward. In less than one year, digital transformation advanced more than it did in the previous two years.

There were steps taken toward a digital transformation that was taking place gradually over the past few years. However, many businesses felt content to ease their way into adopting cloud computing, data analytics, and artificial intelligence. The events surrounding the pandemic pushed them toward accepting these things if they were going to survive.

While digital transformation is forcing businesses to change the way they operate many organizations around the world are not able to embrace it. According to Business Wire's report, a Canadian study by Beagle Research Group showed that 2/3 of Canadian organizations are not ready to digitally transform the way they operate. Most of them were already working on their digital transformation goals, but the pandemic situation forced them to speed it up to the point where they couldn't keep up with the transformation requirements.

Digital transformation is an exhausting process for most companies that had to fight for their survival since the pandemic's outbreak. Most of them had to rethink their cybersecurity strategies, and move to the cloud, says Gary Stevens, a web hosting and IT administrator on Hosting Canada’s Web Services Team. “Make sure your websites are hosted on a secure Canadian web hosting platform, educate your employees on how to secure their devices while working remotely, focus on attracting and retaining customers,” says Stevens. There’s no doubt that 2020 has been a huge year for digital transformation, not only in Canada but around the globe.

What will the changes seen during 2020 mean for digital transformation, especially in the software business, in 2021? Will technologies like artificial intelligence, machine learning, and cloud computing take on greater importance? Or will they fade away? There has been much discussion about new technologies that might take the lead.

Without a time machine, there is no way to accurately predict what tomorrow will bring. However, when looking at current trends in the software business, it is possible to make an educated guess on what digital transformation trends will dominate in 2021.

1. 5G Technology Will Become Mainstream

Technology related to 5G has been on just about every list that discusses digital transformation for the past few years. It is the technology that promises so much. However, up until now, it has failed to materialize.

Thanks to videoconferencing, remote work and digital collaboration, the need for connectivity and bandwidth has become urgent. The concrete benefits of 5G technology are clearly seen. Everyone is relying more on their tablets, devices, and a myriad of Internet of things devices. Technology related to 5G will be affordable, accessible, and an integral part of digital transformation in 2021.

2. The Hybrid Cloud

Even before the pandemic, businesses had been migrating to the hybrid cloud. It was already set to be a major force in digital transformation for software businesses in 2021. However, the sudden disruptions caused by COVID-19 have highlighted the importance of having an adaptable and agile cloud infrastructure.

Businesses are accelerating their investments in the cloud. Software businesses want to quickly make changes in an uncertain environment. No one wants to have the feeling of helplessness that accompanied the disruption of business in 2020.

3. More Emphasis on Artificial Intelligence and Machine Learning

AI and machine learning have also been mainstays on lists of digital transformation trends to look out for. In 2021, these technologies seem to be at a point where they can reach their full potential.

AI is allowing for increased connectivity in every aspect of an organization. Increased connectivity means access to and the creation of more data.

The power of this can be seen with many software applications. A simple example is ERP software. When it is AI-enabled, it can organize data and prioritize it, collect it, and structure it. This makes it possible for organizations to manage transactions and take the necessary action to prioritize growth.

4. Increased Emphasis on Predictive Analytics

Predictive analytics focuses on using predictive modeling, data mining, and machine learning to look at data and try to predict what the future will bring. Predictive analytics is used in software that organizes maintenance operations. It is helping decision-makers identify equipment issues before they happen.

In 2021, predictive analytics and its accompanying software will play a larger role in other industries. For example, buyer behavior models, materials management, and financial operations will be influenced by predictive analytics.

5. A Hybrid Business Model

It is expected that in 2021, software businesses will adopt a hybrid business model. This is a blend of physical presence, online presence, and decentralization. This is a tweak to the idea of remote working. The idea is that people are not remote but are close to a network. Organizations will be able to connect to cloud computing resources and work jointly to realize their organization’s goals.

This is going to require re-examining digital engagement solutions. The solutions that are used now work just fine, but they were primarily designed for an age when everyone worked in the office. The benefit of a hybrid business model is rapid adoption. Technologies such as webinar software solutions are needed that allow open communication and collaboration between teams, individuals, and customers.

For software businesses, this means that 2021 will probably lead to mergers, reorganizations, and acquisitions. Big vendors are going to grow larger. The competition between vendors will become more intense as certain vendors will rise from the pack, creating software and platforms that make use of integrated communication layers.

6. XaaS Model Will Grow Stronger

The X as a service model has become the standard used by many software businesses. The year 2021 will speed up this trend where services delivered will be in the cloud. Customers will be able to virtually access just about everything they need. The Internet of things and artificial intelligence will play a vital role in expanding this service model.

Artificial intelligence as a service will be a major player. There are already several technologies, including speech recognition, data processing, and face recognition, that are becoming viable because of artificial intelligence. AI is at the heart of the framework of cloud computing. Because of this, many IT giants are investing heavily in the concept of artificial intelligence as a service.

7. Increased Emphasis on Cybersecurity

Cybersecurity is always a priority. COVID-19 has emphasized the importance of cybersecurity. Cyber criminals have exploited COVID-19 and have attacked businesses worldwide. Since the pandemic began, attacks on banks have increased by over 230 percent. It is expected that in 2021 software makers are going to increase their efforts to make their products and services secure to address the threats that have become apparent in 2020.

Conclusion

The coronavirus pandemic has changed digital transformation. It has made things that were once thought impossible or impractical seem like a good idea. It is likely that this will continue in 2021.

The year 2021 promises to be a big year for the software business. Hopefully, it is one that is filled with stability and financial prosperity. Regardless of how the year plays out, the one certainty is that digital transformation will continue to be a focus of organizations around the planet.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)