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June 22, 2020

4 enterprise developer trends that will shape 2021

Ethan Batraski
Contributor

Ethan Batraski is a partner at Venrock, where he invests across sectors with a particular focus on hard engineering problems such as developer infrastructure, advanced computing and space.

Technology has dramatically changed over the last decade, and so has how we build and deliver enterprise software.

Ten years ago, “modern computing” was to rely on teams of network admins managing data centers, running one application per server, deploying monolithic services, through waterfall, manual releases managed by QA and release managers.

Today, we have multi and hybrid clouds, serverless services, in continuous integration, running infrastructure-as-code.

SaaS has grown from a nascent 2% of the $450B enterprise software market in 2009, to 23% in 2020 and crossed $100B in revenue. PaaS and IaaS revenue represent another $50B in revenue, expecting to double to $100B by 2022.

With 77% of the enterprise software market — over $350B in annual revenue — still on legacy and on-premise systems, modern SaaS, PaaS and IaaS eating at the legacy market alone can grow the market 3x-4x over the next decade.

As the shift to cloud accelerates across the platform and infrastructure layers, here are four trends starting to emerge that will change how we develop and deliver enterprise software for the next decade.

1. The move to “everything as code”

Companies are building more dynamic, multiplatform, complex infrastructures than ever. We see the “-aaS” of the application, data, runtime and virtualization layers. Modern architectures are forcing extensibility to work with any number of mixed and matched services.

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