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The $2 trillion spent annually on traditional software development is increasingly avoiding labor-oriented processes and focusing on an emerging digital supply chain that is unleashing demand for a new class of software vendors. Robotic Process Automation (RPA) offers ease and scalability of business process automation that presents a direct threat to traditional BPO and IT services providers.

DevOps serves as the foundation for companies to build, test, and deploy software more quickly, reliably and securely, driving more software adoption and creating new markets. With a new ability to make hundreds of software updates per day versus a rigid quarterly release cycle, companies must embrace this new paradigm or face share loss. We estimate a TAM of $24 billion by 2023, spanning development, deployment and monitoring.

What we’re watching:

  • TEAM vs NOW
  • Developer buying power
  • Convergence of APM, metrics and logs
  • Vendor consolidation
Themes 2020

15 Themes to Focus on 2020: A Handbook for Portfolio Managers

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Many refer to DevOps as the industrialization of software development, much like what the manufacturing sector went through a half a century ago.

—J. Derrick Wood, CFA, DevOps: The Next Frontier Of Automation



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