The "Managed Application Services Markets - Growth, Trends, and Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The managed application services market was valued at USD 3.08 billion in 2019, at a CAGR of 18.23% over the forecast period from 2020 to 2025.
HCL Technologies Limited
Key Market Trends
IT and Telecom is Expected to Hold Major Share
The IT and telecom sector is a significant market for the managed application services, due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy, an increased need for high-end security due to the rapidly growing data among the organizations. The telecom industry has observed extensive growth during the past few years. Telecommunication companies are encountering constant pressure to deliver innovative services at lower costs to retain their customers in the competitive market.
According to the 2019 SD-WAN Managed Services Survey, 64% of the surveyed network and IT managers are planning to add an SD-WAN managed service in the next two years. This is because the end-users believe it will deliver better security, improved cloud application performance, and flexible management. This demand is encouraging IT and Telcom service providers to purchase hardware, software, and regular administration of their networks from a third party. Many of the SD-WAN managed service providers are differentiating themselves with a wide range of security offerings
According to Hazlecast Infinity Data report in collaboration with Intel, IT decision-makers identified cloud application performance (40%) as the number one opportunity to unlock profits, with financial services (49%), telecommunications (42%) and e-commerce (40%) ranking it the highest among verticals surveyed. However, security (97%) and performance (90%) were cited as two of the top challenges when migrating to the cloud.
North America is Expected to Hold Major Share
The North American Managed Application Services market is growing due to the changing IT infrastructure landscape, especially in small and medium enterprises (SMEs), who are continually focusing on outsourcing cybersecurity solutions. For instance, Kpaul Properties LLC, one of the emerging manufacturers and distributors of IT supplies in the United States, onboarded FUJITSU to replace physical servers with a virtualized environment. This has reduced the company's cost by 15% and delivered 95% uptime. With the speedy acceleration of modern technology and the need for streamlined IT functions, an increasing number of businesses in the region find the best way to keep pace with MSP.
Besides, Canada is witnessing a high rise in the application of multi-Cloud environments and increased adoption of automation. In the region, Cloud, mobile, and social technologies demand that businesses take a proactive approach towards IT security, thus boosting the demands for the deployment of robust managed services that would deliver in all security management layers. Unified Communications as a Service and related Contact Center as a Service market represent a business opportunity for managed service providers. This is because emerging players offer innovative cloud-based solutions, which require a minimum investment and are easy to deploy.
In November 2019, Rackspace, an American managed Cloud computing company, announced that it has agreed to acquire Onica, an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. This acquisition brings Onica's innovative professional services capabilities, including strategic advisory, architecture, and engineering, and application development, to the Rackspace portfolio, complementing its existing managed cloud services capabilities. Rackspace's hybrid cloud portfolio enables enterprises to leverage a wide range of technical enhancements, from IT security to software development.
Key Topics Covered:
1.1 Study Assumptions? and Market Definition?
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.3 Market Drivers
4.3.1 Ongoing shift to the cloud coupled with growing demand for integrated application hosting services
4.3.2 Organizations are increasingly looking at outsourcing of non-core functions to gain competitive advantage
4.3.3 Digitization efforts and high adoption of mobile solutions to augment growth
4.4 Market Challenges
4.4.1 Concerns over security and privacy associated with outsourcing to third-party organizations and operational concerns
4.5 Market Opportunities
4.6 Impact of COVID-19 on the Managed Services Industry
4.6.1 Managed Service Providers (MSP) outlook states that they are likely to be unaffected by the outbreak as compared to professional service vendors
4.6.2 Evolving vendor strategies to leverage the growing demand for remote application monitoring
4.6.3 Growing demand from SME's to support their digitization efforts
5 TECHNOLOGY SNAPSHOT
5.1 Major types of Managed Application Services
5.1.1 Database Management
5.1.2 Application Service Stack
5.1.4 Security & Disaster Recovery
5.1.5 Infrastructure Support
5.2 Key adoption trends for Managed Application Services in Web & Mobile platforms
6 MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 Small & Medium-scale Enterprises
6.1.2 Large Enterprises
6.2 By End-user Vertical
6.3.1 North America
6.3.4 Rest of the World
7 COMPETITIVE LANDSCAPE
8 INVESTMENT ANALYSIS
9 MARKET OUTLOOK
For more information about this report visit https://www.researchandmarkets.com/r/qvceks
View source version on businesswire.com: https://www.businesswire.com/news/home/20201204005413/en/
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