The global managed hosting market is anticipated to grow at a considerable pace over the forecast period. Growing concern regarding running data centers is expected to drive the market over the next eight years. As businesses are expanding globally, the need for space and utilities has highly increased.
Hosting is quality handled data center services that help companies to reinforce their operations in their definite sector; moreover, it is a facility where renting computing servers and storage takes place. It helps consumers to reduce their IT expenses by focusing more on revenue generation. Managed hosting services are solutions governed by the service provider and purchased by the clients. The increasing need for these centers globally is expected to have a positive impact on the industry over the forecast period.
These data facility services are segmented into retail and wholesale data center types. In wholesale, the occupant leases the entire built space and is responsible for administering all IT operations.
Managed hosting services are required by the client to reduce expenses on IT infrastructure, boost security, and ownership authority over data. The growing use of virtualized technology is a key trend witnessed in the managed hosting market and is expected to continue over the forecast period. Managed hosting services assist virtualization by lowering the cost and complexity of the virtualized environment.
One of the key drivers for the global market for managed hosting services is expanding the amount of storage and application distribution over the internet. Companies such as Google, Facebook, and Twitter administer and process an enormous amount of data through the web, owing to network traffic and increased information.
One of the primary challenges that the market faces is the growing complexity of network infrastructure which means managing to host the service supplier’s battle to provide an entire solution for enterprises. Hosting services demand is anticipated to grow over the next eight years on account of various vendors providing controlled scalability advancements to enterprises.
Hosting service providers associated with cloud providers and hardware vendors have been offering exclusive services to their clients. These data centers are extremely flexible and governed solutions ranging from simple data warehousing to data analytics. These exceptional features allow easily managed hosting by decreasing expenses which are anticipated to have a positive effect on the global managed hosting services market over the forecast period.
These data centers grant physical access to their devices and servers in professional data centers. In addition, it provides high-frequency bandwidth, continuous security, special services & systems, and advanced infrastructure. Several businesses rent space for locating computing hardware and servers in offices. These factors are anticipated to drive service demand, hence have a positive impact on the industry over the forecast period.
By end-user, the managed hosting market is segmented into small, medium, and large enterprises. The larger enterprise comprises sectors such as telecommunication, information technology, and healthcare & life sciences. They are the major contributors to the global market and influence the service industry owing to growing demand from the telecommunication and IT sector. However, SMEs are anticipated to witness tremendous growth as their need would depend on the rise in retail services. Growing application scope in financial & banking sectors, public & government sectors, and energy sectors is expected to enhance the industry growth over the forecast period.
The global market is segmented into five major regions namely North America, Asia Pacific, Latin America, Middle East Asia, and Europe. North America overshadows the market owing to the increasing focus on power consumption and energy management practices. In developing nations such as China and India, growing demand from SMEs is anticipated to augment the market over the forecast period. In the Asia Pacific, the expansion of medium-scale sectors is projected to propel industry growth over the forecast period.
The key players in the managed hosting market include Verizon Communication Limited, DuPont Fabros, SunGuard Availability Services, Data Pipe, IBM Corp., Hosting.com, Viawest, Zcolo. Others include Latisys, CoreSite Realty Corp., Level3 Communications, AT&T, Equinix, Interxion Holding, Global Switch, Digital Reality, KDDI Telehouse, CenturyLink Savvis, NTT Corporation, and Rackspace.
In May 2015, Ita acquired Telecity to broaden its business and in September 2015, Equinix overtook Bit-isle, a service provider in Japan. The market leader is Equinix with over 8.0% of global market revenue, followed by Digital reality with over 5.0% share. Digital reality is the market leader regarding operational square feet with over 9.0% of global capacity. These companies are expected to be key contributors to the industry over the next seven years
The acceptance of hosting services and solution is still in the initial phase in developing regions such as Latin America and Middle East Asia. Therefore, the necessary data cost and concern of loss of control over the server prohibit the various organization from adopting colocation services, which acts as a significant restraining factor for the expansion of the data center hosting market. However, worldwide growth in spending on IT is anticipated to provide growth opportunities for the industry over the next seven years.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.