Product Code: 60373
- Companies struggling to strike a balance between ensuring their IT infrastructure functioning at optimal performance levels and also simultaneously managing the costs associated with it are increasingly hiring vendors that offer infrastructure services. Managed Infrastructure Services help different industry verticals to focus only on their core business.
- These services are mostly being adopted in the IT industry, where cost optimisation, emphasis on core competencies and security of data remain significant concerns. The major contributor to this trend, however, has been the recent proliferation of cloud-based technology and technological advancements.
- The proliferation of technologies like Big data has further added to the need for outsourcing It services. The combination of both Big Data and Cloud can be leveraged by companies to provide scalable and cost-effective solutions. For example, Amazon "Elastic Map Reduce" demonstrates how the power of Cloud Elastic Computes is leveraged for Big Data processing.
- Further, the need to update outdated hardware is another major driver to the market. According to a survey conducted by Spice works Inc., 64% of the 700 companies involved in the study reported that the need to update outdated information technology (IT) infrastructure and security concerns are the major factors leading to high IT budgets.
Scope of the Report
IT infrastructure refers to the combination of hardware, software, network resources, and services required to operate an enterprise IT environment. IT infrastructure is usually internal to an organization and is deployed with the organization's premises. But with the evolution of the IT supply chain, enterprises are able to outsource their infrastructure requirements. In cases of managed services, a third party service provider manages an organization's in-house day-to-day IT infrastructure requirements of an organization are benefiting the global IT industry and helping them to cut down several operation costs.
Key Market Trends
Technological Proliferation and Advancement of Cloud Based Technology Complement the Demand
- In the current market scenario, the increasing dependency on cloud services and infrastructure upgrading activities stand to be the major factors driving the demand for managed IT infrastructure services. In fact, it is estimated that most of the infrastructure developments in the next few years are mostly dedicated to supporting the increasing demand for cloud services.
- The landscape of IT infrastructure itself is changing rapidly. Traditional racks of servers stored in cages are fast disappearing as more and more companies migrate most or all of their IT services and applications to the cloud. In fact, according to LogicMonitor, 83% of enterprise workloads are projected to be in the cloud by 2020. As a result, even the investments into traditional IT infrastructure is expected to decline over the forecast period, as companies are increasingly investing in the advanced cloud infrastructure.
- Moreover, according to the Cisco Global Cloud Index Report, 2018 cloud workloads and compute instances are expected to nearly triple during the period from 2016 to 2021, whereas traditional data center workloads and compute instances are expected to will decline, at a negative 5% CAGR during the same period. Historically, one server carried one workload and compute instance. But with increasing server computing capacity and virtualization, multiple workloads and compute instances per physical server are common in cloud architectures.
North America Region to Hold the Largest Market Share
- North America remains the largest market for managed information technology (IT) infrastructure services on account of the early adoption of technology and the presence of numerous IT data centers.
- According to the Cisco Global Cloud Index report by the end of 2017 North America will be having the largest share (46 per cent) of the hyperscale data centers that will be operating across the world.
- The other factor is the high degree of automation and immense penetration of IT applications in several end-user industries that creates a constant demand for IT infrastructure services in the region.
The Managed IT Infrastructure Services Market is a highly competitive market due to the presence of a large number of large and small players. The fragmented nature of the market is leading to acquisitions, or growing focus on niche segments as strategies to scale up.
The continuously evolving nature of the services offered has made it imperative for all players to keep investing in new-age skills and technologies to stay relevant and ahead of the competition. This can only be achieved by hiring the right R&D talent and/or by acquiring any interesting start-ups that have the potential to disrupt the space.
The major advantage that the smaller players have over the bigger ones is their ability to serve the local markets better because of the presence of their data centers locally. This is forcing bigger players to go for aggressive acquisitions to enhance their global footprint.
- May 2019 - DXC Technology, an independent, end-to-end IT services company, signed a long-term 13-plus year managed co-location services agreement with Credit Suisse (USA), Inc. This partnership with Credit Suisse further enhances DXC's position as a leading global data center co-location and managed services provider.
- April 2019 - Montra Solutions, a software-enabled managed services provider that delivers Cloud, Security, and Infrastructure solutions, announced the acquisition of Midtown Technology Partners, an established provider of managed IT services that has a loyal base of customers in real estate, legal, consulting, and manufacturing. This acquisition is strategically aligned with Montra's aim to provide enterprise-grade security, cloud and infrastructure services to mid-market and small enterprises.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Dynamics
- 4.3 Market Drivers
- 4.3.1 Cost Optimization with the Adoption of Managed Services
- 4.3.2 Technological Proliferation and Advancement of Cloud Based Technology will Act as a Driver
- 4.4 Market Restraints
- 4.4.1 Concerns Over Security and Privacy will Act as a Restraint
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Service Category
- 5.1.1 Virtualization
- 5.1.2 Networking
- 5.1.3 Storage
- 5.1.4 Servers
- 5.2 By Enterprise Size
- 5.2.1 Small & Medium Enterprises
- 5.2.2 Large Enterprises
- 5.3 By Deployment
- 5.3.1 On-premises
- 5.3.2 Cloud
- 5.4 By End-User
- 5.4.1 IT & Telecommunication
- 5.4.2 Retail
- 5.4.3 Transportation & Logistics
- 5.4.4 BFSI
- 5.4.5 Manufacturing
- 5.4.6 Other End-Users
- 5.5 Geography
- 5.5.1 North America
- 5.5.2 Europe
- 5.5.3 Asia-Pacific
- 5.5.4 Latin America
- 5.5.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Fujitsu Ltd.
- 6.1.2 CSS Corp Pvt Ltd.
- 6.1.3 Dell EMC (EMC Corporation)
- 6.1.4 IBM Corporation
- 6.1.5 Alcatel-Lucent SA (Nokia Corporation)
- 6.1.6 Microsoft Corporation
- 6.1.7 Verizon Communications Inc.
- 6.1.8 Citrix Systems Inc.
- 6.1.9 Tata Consultancy Services Limited
- 6.1.10 Deutsche Telekom AG
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS