Thought Enterprise Was Dead? Think Again, As Investments Have Surpassed $5.4 Billion USD

At this day in age, enterprise tech doesn’t get talked about all that much. While this market certainly used to be huge a few very short years ago, the surge in consumer technology that’s been happening has left enterprise tech in the dust. At least that’s what you’d think. Recently, enterprise tech companies have been getting a lot more attention from venture capitalists. For those that don’t know, technology-focused enterprise companies have the focus of implementing tech into businesses in practical, useful ways. Specifically enterprise software companies, which have goals of helping to organize data, making businesses more efficient and secure and a host of other things. Recently, we’ve been seeing huge spikes in the investments being made into these software enterprise companies. These aren’t just small spikes either. They’re huge. In just the first half of this year (2014) startups like these have seen investments go above and beyond a total of $5.4 billion USD.

That’s right. $5.4 billion. What all of the investments though? When you put some thought into it, it makes quite a bit of sense. As we see more and more startups being born in the business market, they need a way to make their companies run more efficiently and securely. What better way to do that than by implementing enterprise tech solutions? The more small businesses that are created, the more that enterprise tech is being used, and the more investments that venture capitalists are putting into them.

Many people in this business have been quite vocal on the whole matter. Joseph Ansanelli, a partner of Greylock Partners, said, “his is that next future data platform that in 30 years from now the vast majority that structured and semi-structured data would be stored in. Oracle? Their core database is basically under attack from Hadoop.”Enrique Salem is one of the newest partners at Bain Capital Ventures. Salem recently said that, “Historically some of these cycles have been a five-to-ten year change, but we are just at the beginning of this transformation. Historically, $120 billion was spent on hardware implemented inside data centers. Now consumers will start running and picking their own applications and that $120 billion spend that was inside the four walls of the data center? A majority of the spend will not be in the data center, but in companies that are delivering services.”

As you can see, enterprise tech is clearly on the rise. Startups haven’t been showing any sign of slowing down anytime soon, so we can expect this growth in enterprise tech to continue for quite some time. For a while there, enterprise tech looked like it was on a downslide with no signs of growth at all. However, thanks to this surge in new, small businesses everywhere, it looks like enterprise tech is getting the comeback that it so desperately deserved. If startups continue to show up in 2015 like they have been in 2014, enterprise tech will only go even further up.