AWS Software Company Competitiveness Index: Powering innovation in the cloud
Innovation is at the top of the agenda for software companies. But with so many opportunities for growth, how do you decide on the right initiatives?
What’s driving transformation efforts?
Software companies are facing unprecedented customer expectations, driven by the rapid emergence of generative AI, heightened security requirements, and growing demand for innovative digital experiences. To scale operations and stay competitive in this dynamic landscape, software companies need to meet these evolving expectations with long-term, tailored transformation initiatives.
We surveyed 750 senior leaders from European and US Based software companies to understand how industry leaders are navigating this challenge. Our comprehensive study reveals critical strategies for scaling operations efficiently, accelerating innovation cycles, and building sustainable competitive advantages in today's rapidly evolving market.
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Key findings
Introducing the five pillars of software company competitiveness.
Innovation
Continually evolving your technology is vital in getting new capabilities to market, and 72 percent of surveyed companies have already started gathering and acting on customer feedback to fuel product innovation. But cross-collaboration between business and technology functions is key, and companies should be wary of ‘tech-first’ initiatives that aren’t sustainable in the long term.
AI adoption
AI is front of mind for most software companies today, with 75 percent of survey respondents using AI for customer service solutions and 72 percent for predictive analytics. However, businesses need to address data security and data quality considerations before adopting new AI technologies.
Customer experience (CX) enhancement
The top three most adopted CX enhancements are continuous delivery and software updates (72 percent), advanced cybersecurity (72 percent), and personalized interactions informed by customer data (66 percent). By migrating to the cloud, software companies can simplify CX transformation and boost customer loyalty.
Go-to-market (GTM) strategy
Most respondents (73 percent) have already started listing on cloud marketplaces, giving their companies much higher visibility in a worldwide market and accelerating their GTM strategy. But additional business support and operational processes are required to reach new customers.
Deployment and pricing
67 percent of surveyed software companies have implemented a multi-tenant software-as-a-service (SaaS) model, and 50 percent have implemented a single-tenant SaaS model. This not only offers more flexibility and scalability for customers, but also minimizes operational costs.
Cloud and AI-powered initiatives drive innovation
81% of cloud adopters report revenue growth over the past 12 months.
79% of respondents say their customers’ expectations around AI have increased in the past year.
Cloud-first companies are twice as likely to exceed expectations on valuations.
Take a closer look at the data
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Staying ahead of the AI adoption curve
AI adoption is accelerating in the software sector, our Software Company Competitiveness Index reveals. Here’s how AWS can help you transform at the pace of change.
Three ways to accelerate your go-to-market strategy
How leading software companies are refining their go-to-market (GTM) strategies to enhance scalability, reach, and sales growth, according to the Software Companies Competitiveness Index.
On-demand podcasts episodes offer alternative access to the data
Explore topics such as cloud maturity and competitive advantage, common data myths, and innovation as addressed in the Software Companies Competitiveness Index findings.
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