Business is Booming in Customer-Managed Environments
Blog post from Replicated
Customer-managed environments, including various cloud and on-premises options, present both challenges and opportunities for independent software vendors (ISVs), as highlighted in a study commissioned by Replicated. The study reveals that 79% of software companies report growth in these environments, with customers valuing data privacy and security, often leading to more lucrative deals compared to Software-as-a-Service (SaaS) offerings. The trend is driven by sectors like finance, healthcare, and government, which prioritize control over data due to regulatory and practical needs. Additionally, the rise of AI emphasizes the importance of data control, as customers are wary of disclosing proprietary information. Neglecting customer-managed environments can result in revenue loss, as evidenced by 47% of SaaS-only companies reporting financial setbacks for not providing customer environment installation options. The research involved 695 participants from software companies worldwide, aiming to document trends and challenges in customer-managed environments.