Managed Application Services Market Size

Managed Application Services Market Analysis

The Managed Application Services Market size is estimated at USD 11.13 billion in 2024, and is expected to reach USD 12.21 billion by 2029, growing at a CAGR of 1.86% during the forecast period (2024-2029).

Demand for end-to-end application hosting services will increase in the forecast period. The managed application services allow the organization to outsource specific IT requirements to a third-party service provider. The companies can reduce costs, boost productivity, and enhance application performance without spending time on implementation, maintenance, and upgradation of their IT-related application. The increase in the adoption of smartphone devices and the implementation of IoT services in the organization will drive the market in the forecast period. Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues in the past years.

• As customers have moved their workloads to the cloud, there is a growth in the usage of cloud-native architectures, particularly microservices. Microservice-based architectures help improve scalability and velocity, but implementing them can pose challenges. For many Java developers, Spring Boot and Spring Cloud have helped address these challenges, providing a robust platform with well-established patterns for developing and operating microservice applications. In the previous year, to help make it simpler to deploy and manage Spring Cloud applications, together with Pivotal, Microsoft created Azure Spring Cloud.
• Recently, VSHN announced Project Syn, the next generation Open Source managed services framework for DevOps and application operations on any infrastructure based on Kubernetes. Project Syn is a pre-integrated set of tools to provision, update backup, observe, and react or alert production applications on Kubernetes and in the cloud. It supports DevOps through complete self-service and automation with the help of containers, Kubernetes, and GitOps. Project Syn is about to become an Open Source project shortly. It consists of several components that bring the necessary features for running applications in production on Kubernetes, acting as an operations framework.
• During the previous year, AWS launched Amazon Managed Apache Cassandra Service, a scalable, highly available, and managed Apache Cassandra-compatible database service that enables the user to run the Cassandra workloads in the AWS Cloud utilizing the same Cassandra application code, Apache 2.0 licensed drivers, and tools that are used. With Managed Cassandra Service, there is no need to provision, patch, or manage servers and install, maintain, or operate the software. Tables could scale up and down automatically based on request traffic, with virtually unlimited throughput and storage. The user can manage access to the tables using AWS Identity and Access Management (IAM) and keep the applications running smoothly with integrated logging and monitoring.
• Information Technology spending in recent years is likely to fall as organizations trim investments in technology in the wake of the COVID-19 pandemic-led slowdown. However, enterprises and government agencies continue to invest in software and IT services, which is expected to stabilize the market. While short-term projects are getting stopped, the managed application services segment, which fetches significant revenue for service providers, has not been impacted by the outbreak. Recently, XenonStack offered a free 3-month Managed IT Support, Application Management, and Migration to the Cloud as part of their COVID-19 response plan program to anyone directly involved in relief initiatives like Healthcare, NGOs, and government bodies.