The Software & Information Industry Association (SIIA) released its second annual report, Vision from the Top, on the future of the software and services industry. The publication based on the forecasts from 49 CEOs and high level executives, predicts how cloud will drive global business over the next decade.

The annual report, which is a collection of interviews by industry top executive including Oracle, IBM & Dell Boomi, predicts insights into some challenges brought by cloud technology trends including the changing roles played by IT, sales and the customer and how companies are going to address these challenges going forward.

“Technological innovation is the engine driving growth in the software industry and our economy,” said Rhianna Collier, Vice President of SIIA’s Software Division. “With the economy in recovery and IT budgets expanding, we asked 49 top executives for their view of where the software industry stands today–and where it’s headed over the next decade.”

SIIA member executives were asked questions as how the world would view innovation in 2020, how they keep the organization focused on customers and value; what would be the most technical advancement driving business growth for the next decade; should there be more adoption of cloud-based services and does mobile ecosystem fall into one of the top 5 priorities?

In this context, SIIA member executives expect cloud computing continues to dominate the next wave of technological innovation and increased IT spending, along with broadening product portfolios, R&D spending and international expansion.

“Should we expect to see greater adoption of cloud-based services? The answer is a resounding yes. Other predictions focused on the enhancement of recent innovations and capabilities, and on the explosion of information both structured and unstructured. For example, some executives view business analytics as an area for increased innovation and business value. There is also a suggestion that identity management will become even more critical in the future,” said Steven Perkins, national technology industry practice leader for Grant Thornton LLP.

The report highlights a number of emerging themes and challenges brought by cloud computing:

• Despite the proliferation of social media activity, companies have just started making it as a part of their business model. Most executives believe social communication and social marketing will provide a bigger benefit if businesses start using social media more intelligently and effectively.
• Mobile apps will continue to evolve and mobility is a top priority agenda for many of these executives. Business will use mobility to facilitate work on the go, purchases, other transactions, and even e-learning.
• Many CEOs believe that hybrid cloud models are evolving. A well planned and well-executed hybrid cloud adoption integration strategy will become the most cost-effective approach for companies over the next 10 years.
• Big cloud players will continue to acquire software as a service (SaaS) providers on a regular basis as part of their M&A and investment activity. SaaS model will continue to evolve but companies would need a clear strategy and integration plan to achieve ultimate success.

“The forecasts address challenges brought by cloud computing–including the changing roles of IT, sales and the customer–as well as growth areas,” said Collier. “It’s clear that the value of the cloud will continue to skyrocket–fueled by investment in social media and hybrid cloud strategies as well as the next wave of technological innovation.”

Business analytics and identity management are the focus area that will see better innovation and business value over the next five years.