Worldwide Cloud System and Service Management Software 2019 – Summary
The cloud services industry is rapidly expanding in terms of technology, revenue, complexity. In 2019, a record $107bn was spent on cloud computing resources globally, a massive 37% up on the previous year. Similarly, vendor revenue of the global cloud system and service management software market grew 33.5%, up to around $7.4 billion.
VMware cloud contributed the highest amount of revenue, $1.5 billion, in the cloud industry. The cloud solutions implemented by VMware cloud services represent around 19.8% of the global cloud system and management software. Microsoft, IBM-Red Hat, Cisco, and New Relic are the other important cloud vendors.
1. Future Trends
Current trends show that worldwide cloud systems and service management software are continually evolving along with the global SaaS market and technology. A significant majority of organizations prefer a balanced combination of the public cloud, private cloud, and enterprise cloud. As companies grow, they are looking for scalable cloud solutions and want to enjoy the benefits of all major types of cloud platforms such as VMware cloud. Cloud service providers and can expect this trend to continue for some years.
Moreover, the global COVID-19 pandemic’s impact is expected to have a long-lasting impact on the cloud services industry. As organizations move towards remote working solutions, an increase in cloud service adoption is expected. Importantly, many companies are expected to continue to prefer the SaaS delivery model, as it allows for better optimization of cloud resources and therefore overall application performance.
2. Hybrid Architectures
It is extremely important for cloud platforms to offer flexible hybrid-architecture able to fulfil any customers’ requirements. Business requirements are often continually evolving, so cloud services providers should offer a flexible service model that can cater to different types of customer requirements.
The adoption of multi-cloud cloud solutions is also increasing as organizations become more aware of each cloud system’s unique advantages and disadvantages. By implementing a hybrid model, companies can enjoy the benefits of both enterprise and private cloud.
Cloud service offerings include modern infrastructure, application management, public, private, enterprise, and hybrid cloud architectures. VMware cloud is also expecting a continuous rise in its market share over the next few years because, in 2019, it was the leading cloud system and service management software company, in terms of the total revenue.
Cloud industry analysis in 2019 shows that public cloud SaaS-based cloud systems are still a very significant part (34.5%) of the market, even though they are facing tough competition from enterprise clouds and private clouds. Similarly, IT operations management (ITOM) is still dominating the market and enjoying a steady increase in the cloud market, made possible as cloud management software is also offering state-of-the-art IT operations, alongside reliable security options.
4. Major Players in the Cloud Industry
In 2019, most cloud management services providers expanded their operations and functionalities to support the requirements of more organizations, especially large-scale businesses. Most advancements were made to facilitate offering hybrid cloud solutions.
Both Google Cloud and Microsoft Azure began offering more cloud-based services by expanding their capacity, introducing additional security protocols, better monitoring and tracking systems, and providing efficient data backup and recovery options.
VMware cloud systems also experienced a massive improvement as VMware enhanced its SaaS-based cloud management services. Moreover, it launched Mission Control which allows customers to manage all of their datasets and clusters in one place. Automation and monitoring of the VMware cloud systems were also improved, which together catapulted the company to the top of the cloud management industry in 2019.
Overall, it is quite clear that the cloud system and service management services are more powerful when combined with the functionality of both enterprise and private clouds.
The Bottom Line
The growth rate of the cloud system and service management market in 2019 was 33.5%, representing the fact that the adoption of public, private, and enterprise cloud solutions is increasing in various organizations.
A significant majority of companies want to enjoy optimum performance in their automation, intelligent monitoring, and modern analytical tools to improve their business by implementing efficient cloud systems and using service management software.
These current trends are a clear indication that the companies will continue to prefer SaaS-based delivery options. And cloud services providers will also have to analyze the long-term impacts of the COVID-19 pandemic on their business model and services as a great number of organizations are likely to aggressively pursue different cloud solutions in the near future.