Market Trends of Managed Application Services Industry
IT and Telecom is Expected to Hold Major Share
- The IT and telecom sector is a significant market for managed application services due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy, and an increased need for high-end security due to the rapidly growing data among organizations. The telecom industry has observed extensive growth during the past few years. Telecommunication companies are constantly pressured to deliver innovative services at lower costs to retain their customers in the competitive market.
- According to the SD-WAN Managed Services recent survey, 64% of the surveyed network and IT managers plan to add an SD-WAN managed service in the upcoming 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 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 the top challenges when migrating to the cloud.
- In the previous year, Hazelcast announced the availability of Hazelcast Cloud Enterprise on Amazon Web Services (AWS), a low-latency deployment of Hazelcast software as a managed service designed to improve the performance, security, and ease of management of cloud-based applications. Featuring built-in protection and a cloud-agnostic architecture, Hazelcast Cloud Enterprise exceeds the speed, scale, safety, and high availability capabilities of existing commoditized cloud data storage services for large-scale enterprise deployments.
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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), 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 toward IT security, thus boosting the demand for deploying 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.
- Recently, 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, engineering, and application development, to the Rackspace portfolio, complementing its existing managed cloud services capabilities. Rackspace's hybrid cloud portfolio enables enterprises to leverage various technical enhancements, from IT security to software development.
- In the previous year, Infosys unveiled the Infosys Live Enterprise Suite in Phoenix, Arizona, a comprehensive set of platforms, solutions, and digital services that helps enterprises to accelerate their digital innovation journey. The user can embrace the best innovations across cloud providers and build a cloud-agnostic application stack through the Infosys Polycloud Platform. The platform provides a backplane that abstracts the public and private clouds, enabling a standard interface and catalog to select, provision, move and manage platform and application services workloads across the enterprise.
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