Skip to main content

SaaS Driving U.S. Managed Services Growth

The growth of hosted applications, or SaaS (software as a service), as well as other related services provisioned by a third-party provider, are driving steady U.S. managed services revenue growth, according to the latest market study by In-Stat.

As most business functions are still performed in-house by a majority of firms, out-tasking the management of the network and related infrastructure may still be considered a trend. The hosted application model, however, is closing in on becoming a paradigm, the high-tech market research firm says.

"Though business decision-makers have indicated that they plan to out-task major business functions like security, storage, phone system management at a moderate pace, adoption of third-party application hosting is the fastest growing area in managed services," says Jeff Jernigan, In-Stat analyst.

"The on-demand hosted application model has seen acceptance in the small-to-medium business market, and now demand is rising among enterprise-sized firms. The on-demand model will also hasten adoption of utility computing services."

The research report covers the U.S. market for managed services. A forecast of total US managed services spending through 2012 is presented and broken down by size of business sub-segments; SOHO (1- to 4-employee firms), small business (5- to 99-employee firms), mid-sized business (100- to 999-employee firms), and enterprise (1,000+-employee firms).

The research also gives an overall view of what the managed services landscape could look like by early 2009 with regard to adoption of a number of specific managed business functions; security, storage, WAN/LAN.

Key differences between sizes of business and vertical markets are also highlighted. This information will be helpful to providers of pure-play managed solutions as well as to larger providers who deliver in more than one of these functional areas. Survey data that focuses on interest for utility computing services is also presented and segmented by size of business and vertical market.

In-Stat's market study found the following:

- They forecast a 7 percent compound annual growth rate (CAGR), overall, for managed services through 2012.

- While a majority of business functions are still performed in-house, In-Stat research shows that convergence and complexity will aid in steady, yearly, managed services revenue growth.

- Adoption of managed services varies by business functions, size of business, and vertical market. Providers will need to tailor their managed services offerings accordingly.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent