Enterprise digital transformation is driving a total refresh in the tools, processes and people developing software applications. Over the past few years, an increasing number of enterprises continue to expand their in-house software development teams, creating a greater demand for tools that provide more effective development, testing and launch processes and increasing the number of users for development tools. Software is not only changing business models that have been in place for centuries, but also enabling incumbent vendors across disparate industries to improve product offerings, drive deeper engagement with customers and optimize selling and marketing efforts.
The rapid pace of innovation has required software developers to scrap old methods (waterfall) in favor of DevOps and other continuous delivery methods, ushering in a new set of tools. Moreover, the explosion of BYOD within the enterprise has further changed software development from desktop-focused to mobile. With increased influence within the enterprise, practitioners are now driving and making purchase decisions on tooling, increasing budget influence and perceived criticality. Finally, widespread adoption of the cloud and SaaS delivery has brought automation, microservices and integrated security to the forefront of enterprise concern.
These trends, and others, have given rise to both a new class of emerging leaders and a wave of acquisition activity by incumbent vendors. While we have seen slowdown in market consolidation from large, strategic players, well-funded PE-backed leaders have accelerated inorganic growth initiatives and proven to be highly acquisitive.
Shea & Company has been among the most active advisors (if not the most active), advising on multiple market-defining transactions with leading companies spanning the software development lifecycle. In recent years, we have advised on more than 20 transactions in the sector, representing over $8 billion in value across sell-side, buy-side and capital raising mandates, and regularly interacting with all relevant players in these sectors to deliver superior outcomes and support market developments.