The Q2 2022 software sector update from GP Bullhound highlights several key takeaways. Firstly, deployment has become a costly bottleneck for software providers, with the need for cheap end-to-end deployment outsourcing presenting an opportunity for Continuous Deployment-as-a-Service solutions. Secondly, enterprise software budgets are shrinking due to market turbulence, and pricing is becoming increasingly important. Thirdly, Rust has established itself as a multi-purpose programming language with a sharp uptick in popularity due to its simplicity. Fourthly, the new cost of compliance has led to the regulation of continuous software monitoring laws, attracting private market investors to continuous cyber-monitoring platforms. Finally, profitability has become a much more reliable valuation metric for public markets, with industry leaders advising software companies to focus on profitability.
