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Will On-Premises Software Topple the Cloud Market in 2021?

New survey data shows significant growth in customer demand, missed business opportunities for cloud-only companies

Despite the rise in cloud-based applications, on-premises software continues to show significant growth and demand from enterprise software customers.

According to a new report from Dimensional Research and sponsored by Replicated,  the current customer demand for on-premises software is equal to that of public cloud, and more than 90 percent of companies surveyed said their on-premises sales continue to rise.

More than 90 percent of companies indicate on-premises sales continue to rise

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In addition, across the more than 400 software vendor engineers, CTOs, CIOs, and other decision-makers surveyed, more than 70 percent who don’t currently offer an on-premises option are already planning to in the near future. Bottom line: customer demand for on-prem software delivery isn’t slowing down anytime soon.

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“In the past few years we’ve experienced a steady increase in interest from leading global companies who see that modern on-prem software delivery through containers and Kubernetes can make data protection and security much easier,” said Grant Miller, co-founder and CEO of Replicated. “Coupled with growing customer demand, it’s a win-win scenario for any industry.”

       On-premises software in under a week

While the majority of companies cited privacy compliance as the top reason for using on-premises software delivery, others noted that the ability to integrate with established solutions, reliability, and customization options topped their list of why they added the option to their lineup.

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So why isn’t every company already offering on-premises solutions? Survey respondents noted complexity, time commitments, and the cost of engineering resources to get it done. While many companies were created to be fluent in cloud, building and maintaining new on-premises software deployments can be challenging and slow in comparison. While most said they already use container-based applications and Kubernetes in their production environments, 85 percent of companies reported their customers still need help with the container-based installs. Adding to this, only 16 percent can complete a customer install in less than one week.

“The ability to deliver and manage Kubernetes apps anywhere, without it being a complicated, time-consuming slog is key,” Miller shared.

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