Software development was once the sole purview of tech companies, who still hold a major interest, but are no longer alone in that development.

As more corporations realize that they would be wise to do a better job of developing their own software to assist in the delivery of their products and services, the area of software development has grown to include a number of companies that weren’t around a few years ago and that specialize in these specific services.  As a result, there’s a new kind of business under the sun:  a new class of companies that specialize in tools and services for developers, tagged by Dan Gallagher as “companies that crack the code for coders” (ref, WSJ) are just coming into their own. And since just about every type of U.S. company “from retailers to oil drillers to banks” relies more on software to deliver their products than they ever have previously, it’s a given that those new development companies are growing rapidly – and poised to grow more.  The possibilities are vast, when one considers the large numbers of corporations that will be joining in the development effort push.  It’s estimated that about $24 billion will be spent by 2023 on software tools that are designed specifically for the so-called “DevOps” – the discipline of adding more automation and collaboration to software development.  Several of these new companies are already logging several billion dollars in annual revenue, including Atlassian, New Relic, Splunk (who have achieved more than 40% sales growth over the last 5 years) as well as the newly-public company, PagerDuty, which has been among the best of the new IPO stocks this year, with its shares up 122% last month from its listing price.  A number of corporations have already used the DevOps processes that these companies provide to significantly speed up their development processes.  For example, Target used to take 24 hours to deploy new code into production but now does so in just minutes.  Even for the most mundane project that can be a valuable breakthrough; but for security purposes, even more so.  In addition to the new companies that have been developed to do business specifically in this business operations space, the move toward greater use of DevOps tools will also benefit the tech companies like Microsoft, Amazon and Google/Alphabet that have incorporated development tools into their rapidly expanding cloud services.  A recent DevOps Enterprise Summit seems to sum up the momentum of this group of companies as they move toward the future.

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