Tag: digital

Low-code Market Realities: Understanding Common Myths to Avoid Costly Mistakes

Despite their growth, low-code platforms are still surrounded by much confusion. Many enterprises incorrectly believe that real developers don’t need low code, anyone can do it, and it’s only for simple problems. To debunk three common myths in the low-code market, read on.  

With its increasing importance, low-code platforms are also subject to several myths and misunderstandings. As with every evolving technology, enterprises have many questions about optimally using these platforms.

Based on our conversations with multiple enterprises confirming the lack of understanding about the low-code market, we tackle the common misperceptions below:

Myth #1: Low-code platforms are meant for use by citizen developers

The term low code generally evokes the impression of an HR manager who, tired of following up with the IT team multiple times, decides to create a leave approval workflow application. While this impression is not incorrect, professional developers and enterprise IT teams are key stakeholders in the low-code ecosystem as well.

Professional developers increasingly use low-code platforms to improve their efficiency. Some of these platforms can provide code quality alerts and Artificial Intelligence (AI)-powered recommendations, not to mention custom solutions that require minimal tuning.

The built-in DevOps capabilities in these platforms also encourage a culture shift from the commonly used waterfall model among users. For example, supply chain management software provider Nimbi significantly reduced developers in their team from 40 to 24 when they switched to OutSystems from traditional platforms.

We strongly believe central IT teams have a meaningful role in the ecosystem to provide effective oversight and governance, in addition to strategizing the use of the best low-code platforms at the enterprise level. In the absence of centralized governance, low-code platforms may proliferate across the organization leading to aggravation of the shadow IT issues and higher spend.

Myth #2: Low-code development does not require technical skills

As much as we may want to believe, low-code platforms are not a panacea to the ongoing talent crisis. Misleading promises by certain technology vendors have created a common impression that any user can develop any application using low-code platforms. However, low-code development does not imply zero technical skill requirement.

Most low-code platforms enable the extension of their capabilities through traditional programming languages like Java and C#. Off-the-shelf solutions have their limitations, and most applications need custom logic at some point. Typical job descriptions for low-code developer profiles outline technical qualifications like JavaScript, HTML5, and CSS3, alongside Continuous Integration (CI) and Continuous Delivery (CD) pipeline tools like Jenkins.

Thus, it is unrealistic to expect an army of business users to step in and take over all application development-related needs from the IT organization. Low-code development remains a role with a highly demanding skillset across various technologies.

Myth #3: Low code cannot be used for enterprise-grade development

Many enterprise leaders and service providers believe that low-code platforms are only suitable for small-scale department-level needs. However, our conversations indicate that low-code platforms are being rapidly adopted for critical applications used by millions of users. Here are some examples of how low code is solving complex IT problems around the world:

  • A large US commercial insurer has built its entire end-to-end multi-country comprehensive, business-critical application that manages claims, billing, and collection on Appian
  • One of the largest consumer goods companies in the world built a huge global application for financial management on Microsoft Power Platform

As we witness the adoption of low-code platforms garnering pace, a lot of myths and misunderstandings need to be cleared up about low code versus traditional development. Technology providers and service partners play a key role in helping their clients navigate the abundant options to orchestrate a carefully crafted low-code strategy and select the best low-code platforms.

At Everest Group, we are closely tracking the low-code market. For more insights, see our compendium report on various platform providers, the state of the low-code market report shedding light on the enterprise adoption journey, and a PEAK Matrix assessment comparing 14 leading players in the low-code market.

To share your thoughts and discuss our low-code market research, please reach out to [email protected], [email protected] or [email protected].

You can also attend our webinar, Building Successful Digital Product Engineering Businesses, to explore how enterprises are investing in next-generation technologies and talent and the most relevant skillsets for digital product engineering initiatives.

Web 3.0 and Metaverse: Implications for Sourcing and Technology Leaders | Webinar

ON-DEMAND WEBINAR

Web 3.0 and Metaverse: Implications for Sourcing and Technology Leaders

The next evolution of technology is upon us, and business leaders are racing to understand new concepts like Web 3.0 and Metaverse – both generating strong reactions from hype acceptance to extreme cynicism. Regardless, organizations that explore the business benefits, experiment early, and work with the right partners are bound to see the full potential of both.

In the coming years, we expect to see business adoption of Web 3.0 and Metaverse in some form or another, as they evolve and expand business boundaries.

Watch this on-demand webinar as our experts deliver their perspectives on Web 3.0 and Metaverse and provide actionable insights to enterprises, service providers, and technology vendors.

What questions will the webinar answer?

  • What is Web 3.0 and Metaverse?
  • How are these relevant to your business?
  • What should you do to source services and technology for these?

Who should attend?

  • CTOs, CDOs, CHROs, CXOs
  • Digital engineering leaders
  • Cloud and edge leaders
  • Heads of sourcing
  • Vendor managers
  • Mixed reality leaders
  • Extended reality leaders
  • Metaverse architects

Europe Embarks on a New Technology Regulation Wave

Big changes are coming as Europe moves toward digital empowerment by 2030. Governments are building frameworks for the regulation of emerging technologies to protect consumers and companies while promoting innovation and digital leadership. What impact will the drive toward technology sovereignty have on BigTech providers, buyers, and investors? Read on for the latest in our series on technology sovereignty.  

In our last blog, we explored the emerging and growing focus on technology sovereignty in the United Kingdom and Ireland (UK&I) and European markets. Let’s continue our discussion of this important topic.

The focus on Europe’s data sovereignty is back in the spotlight as a result of new European Union (EU) rules to limit big online platforms’ market power. The risk of global cyber-attacks by Russia as retaliation against Ukraine also has made this an issue to watch.

Europe’s latest moves for technology regulation are not in isolation. Representatives from business, politics, and science from Europe and around the globe have already been working together since 2019 to create a federated and secure data infrastructure through the GAIA-X initiative.

With data security, privacy, and technology sovereignty becoming key issues for the region, Europe is setting up new regulatory frameworks to protect consumers and companies, while trying to ensure a competitive market and encouraging innovation.

What does the Digital Markets Act (DMA) entail?

Under consideration by the European Commission, the DMA intends to ensure a higher degree of competition in the European Digital Markets, by preventing large companies from abusing their power and by allowing new players to enter the market.

Beyond the hyperbole that surrounds any technology regulation, the DMA provisions include:

  • New regulations on BigTech companies providing “core platform services” that are most prone to unfair business practices, such as social networks or search engines. These companies that have a market capitalization of at least €75 billion or annual revenue of €7.5 billion are considered gatekeepers
  • To be designated as gatekeepers, these companies must provide services such as browsers, messengers, or social media, which have at least 45 million monthly end users in the EU and 10,000 annual business users
  • Sizable messaging services (such as WhatsApp, Facebook Messenger, or iMessage) will have to open up and interoperate with smaller messaging platforms, if users ask, promoting more choice
  • Combining personal data for targeted advertising will only be allowed with explicit user consent from the gatekeeper. Similar to instant messaging, allowing users to freely choose their browser, virtual assistants, or search engines will be required
  • If a gatekeeper does not comply with the rules, they can receive fines of up to 10% of total worldwide turnover in the preceding financial year and 20% for repeated infringements. Companies who systematically violate the regulations could be banned from acquiring other companies for a certain period

In addition to DMA, the EU reached a consensus on the Digital Services Act (DSA) in April, which focuses on setting up a standard for the accountability of online platforms regarding illegal and harmful content. If voted into law, the DSA will apply across the EU within fifteen months or from January 1, 2024, whichever is later. Meanwhile, the DMA likely will go into effect next summer.

The battle for sovereignty and security is just getting started

While these acts are significant steps in Europe’s focus on curbing the perceived monopolistic power of BigTech, they are part of larger movements such as:

  • A growing global reckoning exists around BigTech companies that control multiple industries, such as enterprise cloud computing, consumer-oriented economies, and media and advertising, to name a few. Complicating this further is the way their roles (especially social platforms such as Meta, Twitter, etc.) are evolving into digital town squares, and the subsequent impact on democracy, free speech, and bullying
  • Most BigTech companies originated in North America but are now global businesses. There’s a degree of circumspection in how Europe views this shift in innovation and control and reining it in. These acts are a natural successor to Europe’s previous foray into data protection through the General Data Protection Regulation (GDPR), which came into force in 2018. It subsequently inspired other acts globally, including the California Consumer Privacy Act (CCPA)
  • The region’s increasingly fragile geopolitics is creating new implications for cyberwarfare and rogue state actors, fueling the desire to shore up digital resilience. We can also expect this to have a knock-on effect on other regions (the US is considering similar steps and Australia took measures to regulate the relationship between BigTech and traditional media, to name a few)

We expect this conversation on the regulation of emerging technologies to evolve and shape the future of technology spending and strategies in the region.

Implications of technology regulation for the European ecosystem

Owing to these triggers and the broader conversation around technology regulation, sovereignty, and BigTech reach, we expect the following three implications for buyers, providers, and investors in the European technology space:

  • Buyers should include sovereignty requirements in sourcing decisions: We are starting to see enterprise buyers of technology and services embed sovereignty of the tooling and service providers they choose in RFPs. Expect this to continue and become a hygiene factor for technology providers to showcase in the sourcing process
  • Establish regional market partnerships: BigTech companies are smart and understand they can’t be upstaged overnight. They are already establishing partnerships and tweaking their business model to ensure compliance with the evolving European regulatory environment. Look for more partnerships with specific players in the region to play by these rules (for instance, Google Cloud and T-Systems partnering on cloud sovereignty in the region). IT service providers will also train more people on BigTech technologies as a result
  • Look beyond sovereignty-washing: As with any big shift and trend, new and existing competitors to BigTech will latch on to this market theme. We foresee more press releases announcing the amped up focus on sovereignty. Investors, buyers, and partners should look beyond this marketing hype and truly understand how these firms are solving these issues. For instance, are they embedding sovereignty at the application or data layer? Where does the data reside, and who owns it? Answering these questions can help buyers spot the real innovators

We anticipate a floodgate of activities as we approach implementation timelines in the next 12-18 months. This will create a one-time discontinuity in the market and result in additional spending on compliance. However, market participants will be wise to consider the long-term impact of technology regulation in Europe on their strategies.

To discuss further, please reach out to [email protected] or contact us.

You can also tune in to our webinar, Discover 5 Ways to Transform Your Workforce and Location Strategy Amid Global Uncertainties, for key insights and strategies that global talent leaders can use to readjust their workforce strategies.

Invest to Grow or Invest in Efficiency? | Blog

Most IT technology in organizations focuses on helping to improve the efficiency of the organization. However, as digital transformation takes hold, we can now see that a significant portion of these new IT investments focus on building technology platforms that allow organizations to compete for customers. These new “growth-focused” investments behave differently than their efficiency-focused cousins. They create a more dynamic relationship between technology and the business and evolve at a faster rate, often in less predictable ways. This new relationship between the business and technology increasingly calls for a different governance, investment, and management philosophy.

Request a briefing with our experts to discuss the 2022 key issues presented in our 12 days of insights.

Request a briefing with our experts to discuss our 2022 key issues

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

  • Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.