IT Technology Management as a Service (ITMaaS) is one of the fastest growing segments of the Global Public Cloud Computing Market. Within this segment The Global ITMaaS Market is growing at a CAGR of 43.67 percent from 2013-2018.
On the basis of application, the Global ITMaaS Market is segmented in three broad categories:
Technavio studies indicate a growing shift in demand towards technology management offerings in Resource Utilization, Capacity Planning, and Billing segments. Economic recovery in the near future will further act as a major driver, influencing a change from legacy computing models to cloud-based delivery systems.
Technology Management as a service has key end-user segments that include: Technology and Telecom, BFSI, Government and Education, to name a few. Technology management in areas like Customer expectation are being increasingly sought after as complex demands can no longer be fulfilled through traditional IT practices.
In an encouraging development, sectors like Retail companies are seen spending more and more on IT resources to improve customer satisfaction. They do this while attempting to provide a seamless shopping experience in the face of growing competition from online players.
Given this scenario, while the technology market is dominated by the Americas, the APAC region is expected to gain a larger chunk of the global pie by 2018.
Technavio analysts have conducted a detailed study of the Technology as a Service Market bringing you 4 key drivers of growth:
The Need to Drive Down IT Costs while Gaining Flexibility
For most organizations, and specifically SMEs, the IT environment accounts for a significant portion of their investment budget. In addition, a large amount is spent on management of the IT environment, making the total amount spent on IT systems quite large.
With ITMaaS, the software requirements associated with IT management and maintenance of such software are shifted from internal IT departments to ITMaaS vendors or service providers. Technology management tools are helping organizations understand current situations in businesses and also the areas where changes lead to the highest benefits.
Technology management as a service is bringing greater flexibility to organizations through improved understanding of IT support. In-house IT departments are relieved of the burden of implementing applications and incurring related costs, as ITMaaS vendors offer flexibility and agility in terms of connecting their systems with the organizations’ existing IT systems.
Increased Implementation of BYOD Program
Organizations have realised the benefits of the increased use of mobile devices and are increasingly allowing more employees to bring their personal mobile devices to offices and connect to the business network. This phenomenon is known as BYOD. However, it poses a serious challenge to companies in terms of data security.
Therefore, IT managers are towing with ideas and solutions for supporting and managing these devices. Organizations, though aware of the potential risks, are working on their BYOD policies rather than restricting their employees to connect to the company networks through their own devices.
This will eventually lead to an increased adoption of IT management solutions by companies that are embracing BYOD policy.
Increased Usage of Cloud Computing by Organizations
Organizations across the globe are adopting cloud computing technologies, mainly to reduce the costs associated with managing enterprise IT infrastructure. Also, with the adoption of cloud computing services, end-users are able to concentrate on organizational core activities rather than on managing applications.
With Management Technology as a Service, enterprises are able to establish rapid deployment models that enable applications to be scaled quickly to match the increasing usage requirements. The cloud computing models helps enterprises in easy integration with third-party applications hosted outside the enterprise firewall.
The cloud has evolved as an ideal model to serve as a core platform and integration fabric for many enterprise applications. In addition to these advantages, the cloud computing model provides security at all levels of enterprise IT architecture so that these applications can be accessed even from a remote distance. This is acting as one of the major driving factors for the growth of the Global ITMaaS market.
Increased Adoption in Developing Countries
The Global ITMaaS market is witnessing increased adoption of cloud-based IT management solutions in developing economies such as India and China. Most of the organizations in developing economies have less capital to invest in expensive on-premises service management software.
Hence, these organizations are adopting cloud-based services that efficiently manage their business operations with less capital investment. Also, business operations of such organizations are fairly simple and do not require complex and expensive on-premises solutions. Hence, the increasing adoption of cloud-based solutions, especially in the APAC region, is one of the major drivers in the market.
