Skip to main content

Out-Tasking Web and Application Hosting

According to the latest In-Stat market study, the U.S. business market currently devotes the largest part of managed services spending to managed infrastructure in 2008 at 35 percent.

Most of this current spending is done by the enterprise market -- firms with more than 1,000 employees. While enterprises devote the largest portions of their managed services budgets to managed infrastructure services, at the other end of the spectrum SOHO and small businesses (fewer than 100 employees per firm) spend the bulk of their managed services dollars on Web and application hosting.

Managed network services is the biggest slice of the pie among mid-sized businesses (100 to 999 employees per firm).

The leading trend in managed services is the quickly increasing spending on the out-tasking of Web and application hosting among enterprises and, to a lesser degree, mid-sized businesses.

Spending on Web and application hosting is expected to experience strong increases and a CAGR of 20 percent through 2012. Meanwhile, managed infrastructure and managed network services, are expected to experience solid, but lower growth, with CAGRs of 4 and 3 percent over the same period, respectively.

Spending on Web and application hosting is expected to become the largest area of managed services spending by 2010. The combined growth in the three areas of managed services spending is expected to result in a 7 percent CAGR for total managed services spending through 2012.

Enterprises make up the bulk of wireline data spending, 67 percent in 2008. Mid-sized businesses account for 21 percent of the market. Small businesses (5 to 9 employees) and SOHO businesses (1 to 4 employees) make up just 10 and 2 percent, respectively.

I believe that the upside potential for managed service providers to target the SMB and SOHO segments of the market is truly substantial. Given an appropriate marketing strategy, this is an unprecedented new revenue opportunity.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of