Learning Objectives
By the end of this chapter, you will be able to:
- Identify major trends in modern software.
- Describe the impact of Artificial Intelligence (AI) on software.
- Explain the concept of cloud computing and Software as a Service (SaaS).
- Define low-code and no-code development platforms.
- Describe other trends: mobile-first apps, open source, automation, and cybersecurity by design.
- Evaluate the benefits and risks of these trends for a business.
New Trends in Software
The world of software is constantly evolving. Several major trends are currently shaping how software is created, distributed, and used.
1. Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are being integrated into all types of software to make them more intelligent. Instead of just following a fixed set of instructions, AI-powered software can learn from data, make predictions, and automate complex tasks.
- Examples: Recommendation engines on Netflix and Spotify, voice assistants like Siri and Alexa, and AI-powered features in software like Adobe Photoshop.
- Generative AI tools such as ChatGPT, Gemini, and Microsoft Copilot can draft emails, summarize documents, write code, and create images, and are now built into office software.
2. Cloud Computing and SaaS
Cloud computing is the delivery of computing services—including servers, storage, databases, and software—over the internet (“the cloud”). This has led to the rise of Software as a Service (SaaS), a model where software is licensed on a subscription basis and accessed via a web browser.
- Impact: Instead of buying and installing software on individual computers, businesses and individuals can now rent it. This lowers upfront costs and makes software more accessible.
- Examples: Google Workspace, Salesforce, Dropbox.
| Aspect | Traditional (buy and install) | SaaS (subscribe) |
|---|---|---|
| Cost | Large one-time license fee | Monthly or yearly subscription |
| Installation | On each computer | Nothing to install; use a browser or app |
| Updates | Manual; may need to buy new version | Automatic, always the latest version |
| Access | Mainly from the installed computer | Anywhere with internet |
| Data location | Company’s own computers | Provider’s servers |
| Main risk | Outdated versions, local hardware failure | Internet dependence, data privacy, ongoing fees |
3. Low-Code / No-Code Platforms
These platforms allow people with little to no programming experience to build applications using a visual, drag-and-drop interface. The goal is to empower “citizen developers” to create simple applications without having to write traditional code.
- Impact: This trend is accelerating software development and allowing businesses to create custom applications for specific needs much more quickly and cheaply.
- Examples: Microsoft Power Apps, AppGyver.
- Limitations: less flexible for complex systems, dependence on the platform vendor, and the risk of unmanaged “shadow IT” apps built without security review.
4. Mobile-First and Super Apps
Software is now designed for smartphones first, because most users access services on mobile. Super apps bundle many services in one app — for example, wallets that offer bill payment, ticketing, insurance, and shopping.
5. Open Source Software
Open source software (such as Linux, LibreOffice, Firefox, and WordPress) has source code that anyone can view and modify. Businesses use it to reduce license costs and avoid vendor lock-in, while paying for support where needed.
6. Automation and RPA
Robotic Process Automation (RPA) uses software “bots” to perform repetitive, rule-based tasks such as copying data between systems, generating routine reports, or processing invoices.
7. Security by Design
With rising cyber attacks, software is increasingly built with security from the start: two-factor login, encryption by default, automatic updates, and regular security testing.
8. Agile and DevOps
Software is now released in small, frequent updates rather than large versions every few years. Agile methods and DevOps practices let teams deliver new features quickly and fix problems faster.
Benefits and Risks for Business
| Benefits | Risks and challenges |
|---|---|
| Lower upfront costs (SaaS, open source) | Ongoing subscription costs add up |
| Faster development (low-code, Agile) | Dependence on vendors and internet connectivity |
| Automation of routine work (AI, RPA) | AI errors, bias, and privacy concerns |
| Access from anywhere, on any device | Data stored outside the country or company |
| Always up to date | Staff need continuous retraining |
Nepal Context
Nepali businesses increasingly use SaaS tools such as Google Workspace and cloud accounting, and wallets like eSewa and Khalti act as super apps for bills, recharge, tickets, and insurance. Nepali software companies build mobile-first apps for banks and government services, and many offer cloud-based billing and ERP for small businesses. Students and SMEs also use generative AI tools to draft documents and marketing content — which makes checking AI outputs for accuracy an important skill.
Summary
The future of software is being shaped by several key trends. Artificial Intelligence, including generative AI, is making software smarter and more predictive. Cloud computing and the SaaS model are changing how software is delivered and paid for, moving from a purchase model to a subscription model. Low-code/no-code platforms are democratizing software development, allowing more people to create their own applications. Mobile-first super apps, open source, automation, security by design, and Agile delivery complete the picture. These trends lower costs and speed up work, but bring risks of vendor dependence, privacy concerns, and AI errors.
Key Takeaways
- AI and ML are being integrated into software to make it more intelligent.
- Cloud computing has enabled the rise of the Software as a Service (SaaS) subscription model.
- Low-code/no-code platforms allow non-programmers to build applications.
- Mobile-first design, open source, RPA, and security by design are also reshaping software.
- Each trend has business benefits and risks that managers must weigh.
Discussion Questions
- What is an example of an AI-powered feature you have used in a software application?
- What are the advantages of a SaaS subscription model for a small business compared to buying software outright?
- Do you think low-code/no-code platforms will eventually replace traditional programmers? Why or why not?
Exam-Style Questions
Short answer
- What is SaaS? Give two examples.
- What are low-code/no-code platforms?
- What is RPA?
Long answer
- Explain the major new trends in software with examples.
- Compare traditional software licensing with SaaS. Which would you recommend for a small business in Nepal, and why?
