Click here to close now.




















Welcome!

Related Topics: @DevOpsSummit, Java IoT, Linux Containers, @CloudExpo, @BigDataExpo, @ThingsExpo

@DevOpsSummit: Article

IPOs, IT, and the Future of the Product Development Services Market

Why would companies like Google and Expedia rely on product development partners to bring their software products to life?

For a number of years, analysts at Forrester, Gartner, and other research firms have heralded the growing importance of the product development services (PDS) market in helping companies accelerate time-to-market and product innovation. Forrester analysts John McCarthy and Charles Green published a report last year on a growing trend - that of non-tech companies becoming more and more reliant on software products to connect with consumers.

In 2013, IPOs from PDS companies like Globant and Epam brought the growth of the relatively nascent PDS market further into the public spotlight. Globant, which provides outsourced software development services for companies like Google, LinkedIn, and Orbitz, filed for an $86 million IPO in August of last year. Epam, the subject of a Bloomberg article on the proliferation of "Eastern bloc" software development companies, builds software products for companies like Expedia, Sephora, Coca-Cola, and Adidas.

Why would companies like Google and Expedia, either of which could surely attract some of the world's most talented engineers and developers, rely on product development partners to bring their software products to life? For one, the competition for development and engineering talent has never been greater. Product development partners can provide a steady flow of on-demand talent to help companies turn their product visions into reality, without those companies needing to continually hire talent that possesses the latest and greatest technological expertise.

Another contributing factor toward the rise of product development services has been the acceleration of consumer technology. The massive impact of technology on our lives that started with the PC era has become even more pronounced in the era of the smartphone and the tablet. The consumerization of IT has led to increased expectations for the user experience of software products at work and at home. This means that the most successful software development partners will possess expertise in a wide array of disciplines, including creative/UX, product engineering, quality assurance testing, and long-term support. One-stop shops for PDS will soon become the norm rather than the exception to the rule.

The Innovation Age we live in today requires companies to demonstrate agility in adapting to the changing shifts in technology. Customers no longer pledge allegiance to any brand when superior competition comes along. Look no further than BlackBerry's long, slow march toward obsolescence for indisputable evidence of this fact. If your company is not leveraging emerging technologies to drive business results, chances are your competition is. To truly succeed in the business marketplace today, companies need to look not just 12 or 24 months ahead, but 84 months into the future. A recent HBR article on Bally Technologies' Innovation Lab supports this point exactly.

Some important questions to ask include: Where do you want to be in 5 years, and what will technology look like at that time? How will consumers be interacting with their devices by that point? Or will they be interacting with them at all? How can you start planning for that now?

The growing trend of established companies forming strategic partnerships with outside vendors for core product and technology development services is a telltale sign of things to come. I predict it won't be long before we find ourselves in a world where the PDS space mirrors the world of "traditional" advertising and its agency model. When it comes to advertising, Nike doesn't "Just Do It" - Wieden & Kennedy does. I envision a world where in 5-10 years, many major corporations will have "agencies of record" that are focused on continual improvements in the software development space and are as essential to a company's success as their "brand" agencies of record in decades past.

More Stories By David DeWolf

David DeWolf is the founder and CEO of 3Pillar Global, one of the Mid-Atlantic’s fastest growing technology companies. In this role he has guided 3Pillar to a leadership position within the Product Development Services sector, establishing 3Pillar as the go-to innovator for content, information, and data-rich companies looking to grow revenue through software.

In 2012, David was named one of SmartCEO Magazine’s “Future 50.” In 2011, he was recognized by the Washington Business Journal as one of “40 Under 40” who are Washington, D.C.’s brightest young business leaders. In 2010, he was selected a winner of the Franciscan University of Steubenville’s Outstanding Young Alumni Award.

David earned a Bachelor of Arts from the Franciscan University of Steubenville, where he studied Communications and Theology. He and his wife, Teresa, have six children.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...