Growth of hosted services, specifically hosted applications, or SaaS (software as a service), as well as other services provisioned by a third-party provider, are driving steady US managed services revenue growth.
These are findings from a recent study complied by In-Stat which also found out that 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.”
"Though business decision-makers have indicated that they plan to out-task major business functions like security, storage, phone system management, et al, 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."
Other findings include:
• In-Stat forecasts a 7% 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. |
