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Managed Application Services Markets - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

ReportLinker
·8-min read

The managed application services market was valued at USD 3. 08 billion in 2020, at a CAGR of 18. 23% over the forecast period from 2021 - 2026. The rise in demand for end-to-end application hosting services will increase the market in the forecast period.

New York, March 29, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Managed Application Services Markets - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06039514/?utm_source=GNW
The managed application services allow the organization to outsource certain aspects of their 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 the IoT services in the organization will drive the market in the forecast period.

- 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 October 2019, to help make it simpler to deploy and manage Spring Cloud applications, together with Pivotal, Microsoft has created Azure Spring Cloud.
- In November 2019, VSHN announced Project Syn, the next generation Open Source managed services framework for DevOps and application operations on any infrastructure which is 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 full 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.
- In December 2019, 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 by using AWS Identity and Access Management (IAM) and keep the applications running smoothly with integrated logging and monitoring.
- Information Technology spending in 2020 will likely fall as organizations trim investments in technology in the wake of the COVID-19 pandemic-led slowdown. However, enterprises and government agencies are continuing to invest in software and IT services, which is expected to make the market remain stable. 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. In May 2020, XenonStack offering a free 3-month Managed IT Support, Application Management, and Migration to Cloud as part of their COVID-19 response plan program to anyone who is directly involved in relief initiatives like Healthcare, NGOs and government bodies.

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.
- In March 2020, 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 store services large-scale enterprise deployments.

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.
- In September 2019, 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 from 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.

Competitive Landscape
The competition within the managed application services market is high among the market players without any specific dominating player. The competition results are based on the enterprise’s best features on the high quality and services at a reasonable price. Some of the significant players in the market are IBM Corporation, HCL Technologies Limited, WIPRO Limited, Fujitsu Ltd., and others. Some of the recent trends in the market are as follows:
- April 2020 - Virtustream and Dell Technologies business announced new Managed Availability Services designed to deliver 99.95% availability for mission-critical SAP applications, helping enterprise customers who require the highest level of uptime for their applications. The new Managed Availability Services complement Virtustream’s extensive xStreamCare services portfolio, extending its end-to-end support from migration to management for customers’ SAP applications on the Virtustream cloud.
- March 2020 - Fujitsu announced that it would launch a new company combining its divisions in charge of the business with local government, educational and medical institutions in Japan with Fujitsu Marketing Ltd., which handles second-tier private-sector companies and small and medium-sized enterprises. Additionally, Fujitsu will expand SaaS offerings for its partners and develop application development support programs.

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Read the full report: https://www.reportlinker.com/p06039514/?utm_source=GNW

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