On Friday, Workday (NASDAQ: WDAY) held the biggest tech IPO since Facebook.
Unlike Facebook, Workday does not run a consumer-facing business that claims to have a billion users. Instead, it’s a software-as-a-service solution provider for human resources management (and nowadays adjacent solutions). While not anything as sexy as Facebook, the company is now valued at over $8b.
Why is the market valuing Workday so highly? As usual, it’s a combination of several factors (some very likely exaggerated). But most importantly, is the belief that the new SaaS solutions will eventually replace many of the existing on-premise solutions. Or, as Aneel Bhusri, Workday co-founder said in an interview, “the incumbents are not prepared.”
Last month, Microsoft announced that it would start to automatically upgrade Internet Explorer on users’ PCs, essentially following the route Google Chrome has taken.
This announcement has gained publicity in the Internet-related software community as it was evident that this action was taken to react to Google Chrome’s increasing market share. Within a few years, Google Chrome usage has grown, and it is now not only the second most popular browser overall (surpassing Mozilla Firefox), but also similar in popularity to Internet Explorer 8.0, hence essentially (in a tied race) the most popular specific-version browser overall.
But, the significance of this release transcends the browser war. It highlights that long development cycles are becoming a thing of the past.
Posted in Agile, Agile Software Development, ALM, Application Lifecycle Management, Browser War, Cloud Computing, Distruptive Technology, Enterprise Software, Future of Software, Google, Google Chrome, Internet Explorer, Iterative Development, Oracle, Product Design, Product Management, Product Planning, SaaS, Software, Software as a Service, Software Engineering, Software Marketing, Software Methodology, Software Updates, Web Applications, Web Browser
Tagged Agile Software Development, Cloud Computing
Agile Software Development is continuously gaining momentum in the last decade since the introduction of the Agile Manifesto in 2001. Software-as-a-service (and cloud-based web applications in general) is also gaining momentum in the last decade, roughly during the same period. Is this a coincidence?
Time and again, the technology landscape exhibits parallel fast advancement of synergetic technologies and methodologies.
For example, in the late 90’s, my colleague Elan Dekel has started a company called EarthNoise, offering a video sharing website. Sounds familiar? In 1995, a company called YouTube was founded with a similar idea. It was acquired in 2006 by Google for $1.65b. EarthNoise, on the other hand, went out of business as early as 2001. In the four years that passed, broadband internet access became popular, and so did digital video cameras. The three areas—video sharing, digital cameras and broadband internet—evolved hand in hand to create a new phenomena—user generated video on the web. The ability and desire to share videos online drove increased adoption of broadband internet and digital video cameras (and yielded brand new products such as the now-defunct Flip). The increased consumer demand for broadband and cameras drove down prices and accelerated technology advancement. This in turn increased adoption of video sharing sites. Now, video sharing sites are an inseparable part of our lives.
Arguably, the success of the iPhone is—similarly—largely due to technologies that co-evolve with smartphone advancement: 3G connectivity, Wi-Fi connectivity, touchscreen technology, low-consumption processors and—at least to a certain degree—HTML5.
I would assert that software-as-a-service and agile development methodologies are likewise coevolving and drive each other’s adoption. It may not be obvious, but this creates a spiral effect (or—in Geoffrey Moore’s terms—a tornado) of disruptive innovation that will eventually displace many of the software development paradigms.
Posted in Agile, Agile Software Development, Cloud Computing, Distruptive Technology, Kanban, Pricing, Product Planning, Product Roadmap, SaaS, Scrum, Software as a Service, Software Marketing, Software Pricing