Market Trends of Cloud Information Technology Service Management (ITSM) Industry
Shift Among Businesses Towards Cloud Based Technologies Drives the Market
- The landscape of IT infrastructure is changing rapidly. Enterprises across various end-user verticals struggle to balance their IT infrastructure functioning and cost management. The future technology adoption plans hover around adopting emerging technologies expected to grow exponentially as businesses look to replace outdated infrastructure. Public cloud giants like Google and AWS require on-demand, dynamic, enormous scalability needs.
- Companies using cloud services are required to pay only for resources they temporarily use instead of purchasing, programming, and maintaining additional resources and equipment that remain idle over long periods. This helps the companies in minimalizing costs that do not generate revenue. Thus, cloud ITSM tools are witnessing prolific growth.
- Cloud-based ITSM solutions are one of the best effort-saving inventions of the technology ecosystem. By providing a safe space for colossal data, a cloud ITSM service delivery plan economizes IT infrastructure costs and saves time to focus on core business strategies.
- According to Hashicorp, 90% of large enterprises have adopted multi-cloud in 2021, and this is expected to reach 94% by 2023. Thus, growth in cloud-based adoption holds prominent potential for the studied market.
- Moreover, cloud migration of legacy applications would be another ITSM strategy trending in the coming years. This ITSM solution streamlines IT operations and effectively addresses security gaps. According to Spiceworks Ziff Davis' 2022 State of the IT report, about 44% of enterprises foresee 5G technology as a major IT capability in 2022. 54% of companies surveyed believe IoT would be a major budget driver. Thus, for all these technology development, cloud-based ITSM solutions would witness growth in the studied market.
- Also, in May 2022, CLogic, the leading voice-enabling and cloud contact center solution for ServiceNow, announced the selection of its platform by Denny's, franchisor and operator of one of America's largest franchised full-service restaurant chains. The latest technology partnership would support Denny's IT Technical Services, Guest Services, and Human Resources operations for its more than 3,000 employees and over 1,600 locations.
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North America is Expected to Hold Major Share
- North America is a prominent market for cloud ITSM, owing to the high adoption of cloud technology and the growing need for improving IT services by the end-user industries in the region. According to a survey report on IT Management by Site24*7, 62% of respondents reported ease of management as the top factor in cloud shift, closely followed by business continuity (60%) and scalability (59%).
- Further, a report published in March 2022 with a survey named "A hybrid cloud adoption survey" with 900+ IT professionals suggested that most businesses (93%) are adopting a hybrid cloud and on-premise solutions or migrating fully to the cloud within five years. The survey was majorly done in North America and Europe, where 43.8% of respondents were from North America. Thus, the growing transition toward cloud platforms would drive the demand for IT service management solutions in the coming years.
- Additionally, the region has a strong foothold on the cloud ITSM vendors, contributing to the market's growth. Some include IBM Corporation, ServiceNow Inc., and BMC Software Inc., among others.
- The region is witnessing an influx in the adoption of IT service solutions to increase efficiency and maintain the productivity of organizations. The adoption has been adopted by IT and telecommunication giants, BFSI, and government agencies.
- Furthermore, the government of Canada has a "cloud-first" strategy, whereby cloud services are identified and evaluated as the principal delivery option while initiating information technology investments, initiatives, strategies, and projects. The cloud is also expected to allow the government of Canada to harness the innovation of private-sector providers to make its information technology more agile.
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