The rapid shift to cloud infrastructure has created a widening gap between enterprise software complexity and the ability to validate changes effectively. Recent research from Original Software indicates that while 92% of leaders acknowledge increased testing demands, most organizations remain dangerously reliant on manual processes. This disconnect poses severe threats to business continuity and regulatory compliance.
Carl Andrews, CEO at Original Software, commented, “Enterprise software has changed enormously, but the way many organizations test their Software hasn’t changed at the same pace. You cannot keep adding testing workload without changing how it is handled.
“Core business processes can run across ERP, warehouse, payment, finance and customer systems. A seemingly minor change in one application can have consequences somewhere completely different.”
After a forward and key findings, the report is divided into six sections, with an appendix that details the methodology. The report is only twenty pages long and contains a mix of commentary and data points, with some data visualisations. It draws on third-party research but has no quotations from known analysts or experts in the field.
Cloud Migration Accelerates Enterprise Software Testing Demands
Many enterprises depend entirely on stable IT infrastructure. However, digital transformation and AI-driven innovation have outpaced traditional validation methods. The report reveals that 75% of leaders say software updates are accelerating faster than their testing capabilities.
This misalignment creates significant operational exposure. Organizations are adopting cloud technologies at an unprecedented rate, with 58% now fully or mostly cloud-based. Another 36% operate hybrid environments.
This migration fundamentally alters how software releases occur. Traditional on-premises models allowed for biannual releases planned months in advance. Cloud vendors, however, push updates monthly or even more frequently. Often, releases are delivered with little notice.
AI could further accelerate this increase in cadence, though the report barely covers the influence of AI on the SDLC. It references the Deloitte Tech Trends 2026 report, which identifies how AI is further accelerating innovation.
These releases often occur at times convenient for the vendor, not the client. This lack of control means updates frequently collide with peak business periods. Business users are expected to perform user acceptance testing without adequate notice. Consequently, 42% of IT leaders admit testing competes with higher-priority initiatives. Less than half consider testing a strategic priority with appropriate investment.
Manual Testing Processes Create Critical Business Continuity Risks
Despite growing complexity, enterprise testing remains stubbornly manual. Approximately 36% of US IT leaders rely primarily on spreadsheets, documents, and email for testing business-critical Software. Only 6% report high automation across most systems. This reliance on manual methods is increasingly untenable given the volume of cloud-based changes.
Manual testing places an undue burden on key business users. These employees are pulled away from their core responsibilities to validate repetitive processes. This disrupts productivity and damages morale. More critically, it increases the likelihood of human error. When testing is disorganized and last-minute, critical issues are more likely to slip through undetected.
The consequences of inadequate testing are severe. Notable outages, such as those involving TSB and CrowdStrike, caused widespread disruption. Payment processing failures at major retailers like Greggs and McDonald’s prompted regulatory reviews. A two-hour EPOS failure reportedly wiped £40 million off Greggs’ market value. These incidents highlight the direct financial impact of testing failures.
Only 48% of leaders are fully confident that current testing processes would expose critical issues in time. This confidence appears misplaced given the manual nature of most workflows. As integrations multiply, the risk of cascading failures increases. A minor update in one system can disrupt end-to-end processes across the enterprise.
Cloud Vendor Testing Cannot Replace Enterprise-Specific Validation
A widespread misconception exists that cloud releases are inherently safe. Leaders often assume vendors rigorously test all Software before deployment. While vendors do test their products, they test the vanilla version. They do not test each enterprise’s unique customizations, data flows, or specific integrations.
Enterprise environments are complex ecosystems of interconnected systems. Digital transformation projects have linked multiple ERP, warehouse, payment, and customer platforms. An update from one vendor can cause clashes with another system. 59% of US enterprise IT leaders confirm that growing software complexity makes failures harder to spot before they impact operations.
Vendor testing cannot account for every enterprise’s unique configuration. Therefore, relying solely on vendor assurance is a significant risk.
Automating Repeatable Tests Reduces Manual Overhead by 80%
To bridge the testing gap, enterprises must shift from manual to automated validation. Automation is not just a technical upgrade; it is a strategic necessity. By recording core business processes once, organizations create reusable test libraries. These libraries allow for rapid validation whenever a vendor releases an update.
Automation saves upwards of 80% of the time compared to manual testing. It eliminates the need for multiple rounds of testing and fixing. It also removes the dependency on chaotic email chains and spreadsheets. This acceleration allows IT leaders to prioritize testing without disrupting business operations.
Importantly, automation does not eliminate the need for human expertise. Business users remain the subject matter experts. At the same time, the report notes that AI lacks the contextual knowledge of specific business processes. The truth is more nuanced than that, as it depends upon the learning data set that has informed AI.
Automation does handle the repetitive, tedious aspects of testing. AI can assist; however the human testers are still required to validate findings and review edge cases and exploratory testing.
A gradual approach is recommended. Enterprises should start by automating core operational processes essential to continuity. Over time, they can expand test libraries to cover end-to-end workflows. This evolution reduces pressure on business users while strengthening overall resilience.
Testing Governance Reduces Liability
Leadership must reframe software testing as a core component of business continuity. It is not merely an IT task; it is a risk management discipline. Cybersecurity and disaster recovery are already treated as strategic priorities. Software testing deserves the same level of attention and investment.
The financial and legal stakes are high. The TSB IT meltdown resulted in a £49 million corporate fine. The company’s former CIO faced a €90,000 personal fine. The total cost was estimated at £330 million, along with the loss of 80,000 customers. Such cases demonstrate that IT leaders face personal liability for testing failures.
Regulatory compliance is increasingly tied to software stability. As infrastructure becomes more integrated, the ramifications of a failed upgrade spread rapidly. Organizations relying on manual processes face unacceptable risks. Proactive planning and automated validation are essential for maintaining compliance and protecting reputation.
Enterprise Times: What does this mean
This research is vital for Original Software as it validates the market need for code-free, application-agnostic testing platforms. It provides empirical evidence that manual testing is failing enterprises. For customers, the report serves as a wake-up call. It quantifies the risks of under-investing in testing and offers a clear path to mitigation through automation.
For partners and consultants, these findings highlight new opportunities. Enterprises are actively seeking solutions to reduce testing overhead and improve resilience. The data supports the business case for implementing automated testing libraries. Stakeholders in finance and operations benefit from understanding how testing failures impact their specific functions.
Ultimately, the report underscores that Software runs the enterprise, and testing keeps it running. Digital transformation cannot be slowed, but its risks can be controlled. By adopting a proactive, automated testing strategy, enterprises can ensure stability, security, and continuity in an increasingly complex cloud landscape.
The question that the report fails to address is the impact of AI on the SDLC, both in terms of the development of Software and its testing. This is important, as other research has shown. 89% of organisations are either deploying Agentic AI or deploying GenAI in quality engineering, according to the World Quality Report.
Original Software recently released the latest version of its platform, 10.3. It offers substantial performance improvements and a new Results viewer. While AI powers the platform itself, there was little information about how it is evolving to leverage AI more.
Original Software ioins IFS Partner Programme to reduce cloud ERP change risk
