Investment Rating - The report emphasizes the necessity for organizations to adopt modern software development practices to remain competitive in a rapidly changing business environment [4][10]. Core Insights - Modern software development is undergoing profound transformation, requiring organizations to embrace new practices that meet the demands for speed, agility, and innovation in the evolving business landscape [11][54]. - The integration of generative AI into software development processes significantly enhances developer satisfaction and productivity, allowing them to focus on meaningful work [10][20]. - The report identifies four interconnected pillars essential for modern software development: speed and agility, visibility through testing and observability, AI-driven automation, and embedded security and governance [10][21]. Summary by Sections Section 1: Speed and Agility - Organizations must accelerate software delivery while ensuring their development processes can adapt to increasing demands for code, infrastructure, and testing [9][36]. - The use of low-code and no-code platforms democratizes software development, enabling "citizen developers" to create applications quickly without extensive coding knowledge [23][36]. Section 2: Visibility and Observability - Effective monitoring and troubleshooting capabilities are crucial as systems become more complex and distributed [30][31]. - Organizations need to adopt a modern observability approach to investigate root causes of issues and ensure successful operation in production environments [30][31]. Section 3: AI-Driven Automation - AI and machine learning are revolutionizing software development by enhancing code generation, testing, and deployment processes [20][21]. - AI tools can suggest code completions, generate test cases, and predict areas in code that are likely to contain errors, thus improving overall software quality [21][22]. Section 4: Embedded Security and Governance - As development speeds increase, security and governance must be integrated into every stage of the development process [21][24]. - Organizations face challenges in monitoring an expanding attack surface and must implement robust data governance measures to ensure compliance and security [25][26]. Section 5: Organizational Change and Culture - Successful adoption of modern software engineering practices requires management support and a cultural shift within organizations [45][46]. - Balancing innovation with security is essential, as organizations leverage AI and automation while maintaining compliance and safety [46][47]. Section 6: Future Outlook - The report concludes that organizations capable of effectively leveraging modern software engineering practices will thrive in a fast-paced, ever-changing environment [53][54].