With IaaS (Infrastructure as a Service) becoming a global topic, the demand for IT infrastructure services has grown significantly. These services involve the setting up of work stations, networks, servers, storage, information security, as well as protocols from scratch. Apart from IaaS, SaaS (Software as a Service) and PaaS (Platform as a Service) also require IT infrastructure services, which explains why the infrastructure services market has such a large consumer base. In fact, in 2015, the global IT infrastructure services market was valued at $188 billion. According to analysts at Technavio, the market is poised to grow at a CAGR of just over 5% by 2020.
‘Technopedia’ loosely defines IT infrastructure services as a broad term for the “hardware, software, network resources and services required for the existence, operation, and management of an enterprise IT environment”. These services allow organizations to deliver IT solutions and services to their employees, partners and/or customers. A number of organizations, especially those in the APAC region, are using IT infrastructure services for outsourcing storage, network, support, and managed services. The different types of services within IT infrastructure services include:
- End-user computing services
- Data-center management services
- Network and security services
- System integration services
- Technical support services
From a market share perspective, the Americas hold the largest share at over 50%, followed by EMEA (Europe, Middle East and Africa) and APAC. Though there isn’t one single factor behind the growth of the IT infrastructure services market, we highlight some of the key factors below.
Increased digitization
With the increased number of connected customers, emergence of automated processes, and more sophisticated analytics, buyers want to ensure that they have a major presence in the digital market. With the help of cutting-edge technology, as well as advanced delivery models, IT infrastructure services providers help organizations provide superior services to for their customers.
Demand for scalable infrastructure
Demand for scalable infrastructure is one the strongest forces behind the enormous growth of the IT infrastructure services market. Scalability can be achieved by reducing the time-to-market and switching to platforms like lean, cloud-based infrastructure to improve the agility of operational systems. Also, as businesses are looking for accurate forecasting mediums to predict the needs of the market in advance, the demand for analytics-driven IT infrastructure is quickly increasing.
Focus on minimizing operational costs
Minimal operational costs are something that every organization aspires to achieve – regardless of size. Today, companies around the globe are investing in platforms that offer virtualization, automation of processes, and consolidation of IT infrastructure, in order to overcome high capital costs and administrative overheads.
Demand from SMEs
Small and medium enterprises (SMEs), particularly in developing countries, are often unable to afford or maintain IT infrastructure such as storage devices and servers. This is why most SMEs prefer to procure services from suppliers on a subscription basis, which is yet another driving factor behind the global IT infrastructure services market.
Looking for more information on the geographical segmentation of the IT infrastructure services market?
View the 2016 Global IT Infrastructure Services Market Report
