Cloud System Management Software Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 25.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cloud System Management Software Market Analysis
The Cloud System Management Software Market is anticipated to witness a CAGR greater than 25.1% during the forecast period. With the growth of cloud solutions and services, cloud computing technology is quickly establishing itself as the norm. Businesses and organizations no longer need to spend as much money on their own physical IT infrastructure thanks to cloud computing. Companies are compelled to shift their apps and operations to the cloud for various reasons, including the potential for significant financial savings.
- Software used to administer a cloud system is referred to as cloud system management software. This framework helps to steer the cloud's automation and operations. With a stronger emphasis on digital transformation, AI, and big data analytics, many enterprises turned to cloud services. On the other side, corporations are spending more on cloud services as they implement multi-cloud strategies and move more workloads and data there.
- Demand for the cloud system management market is being driven by the rising popularity of hybrid and multi-cloud designs, which allow for consistent building and operation across cloud, on-premises, and edge environments. Initiatives for digital transformation and optimization have benefited greatly from the cloud. Companies invest in organized innovation programs to achieve business objectives, react to market circumstances, and implement expedited digital transformation projects. As an illustration, IBM created Red Hat OpenShift, the industry-recognized hybrid cloud container technology. Users can create and access cloud services from any cloud and from any location using Red Hat OpenShift.
- The requirement to manage and execute apps through a SaaS model or manage a cloud architecture with an IaaS or PaaS platform arose as cloud software became a staple of any business IT environment. Enterprises turned to deployments between private and public, multiple public, and numerous private and public clouds as soon as Infrastructure-as-a-Service (IaaS) was introduced. As a result, the adoption of cloud system management experienced a significant landscape shift in favor of performance, cost, configuration monitoring, and analytics. Similarly, companies in the industry under investigation used strategic alliances and acquisitions to broaden their portfolios.
- Two problems that arise with multi-cloud are vendor lock-in worries and a need for more cloud spend control. Vendor lock-in refers to a situation where the cost of switching vendors is so high that the customer is essentially stuck with the original vendor because of financial constraints, a lack of workforce, or the need to prevent business operations from being disrupted, which could impede the growth of cloud system management software. Also, there is a constant risk of data breaches, which impedes industry development.
- Businesses increasingly use enterprise solutions to employ cloud-based apps to target a niche market. This adoption brought about much more substantial changes in these organizations' priorities. In addition, as the need for digital technologies increases, cloud-based apps rather than on-premise ones are more frequently used to maintain consistent enterprise business operations. Because of rising cost-cutting initiatives and pressure to produce more from IT systems and software, COVID-19 had a considerable impact on the global market. The cloud software segments were consequently looking toward SaaS delivery models with proactive and predictive optimization capabilities, enhanced application performance, and robust cost control due to COVID-19.
Cloud System Management Software Market Trends
This section covers the major market trends shaping the Cloud System Management Software Market according to our research experts:
BFSI Expected to Hold Significant Share
- As more banks and financial services organizations look to monetize data by predicting customer spending patterns and insights driven by unstructured datasets, the demand for AI, predictive analytics, and big data continues to grow in Banking and Financial services firms to strengthen the business model. As a result, multi-cloud financial management and FinOps built on the cloud are becoming significant drivers of cloud management for systems and services. The present state of data science and machine learning pervasiveness in banking and other financial service offerings attracts the mission-critical development of cloud management.
- Moreover, the General Data Protection Regulation (GDPR) led BFSI-based organizations to change how they think about data. Being accustomed to stringent regulations, banks, investment funds, insurance companies, and allied businesses have been tasked with managing their data even more closely to avoid fines and reputational loss from failing to comply with the regulations.
- Likewise, American Fidelity (AF), supplemental insurance products and enrollment benefits provider, has over 1.5 million policyholders across 49 states of America, with more than 2.5 million policies. The company needed help to realize the performance of its critical customer-facing enrollment systems. These enrollments further operate across a hybrid, multi-cloud environment built on a mix of on-premise systems, Azure, and AWS environments. Dynatrace offers multiple monitoring tools to obtain single view-based visibility into its territory and eliminate performance blind spots, significantly improving AF's application performance.
- The banking and financial organizations can significantly leverage the benefits of on-demand scalable infrastructure services, adequate data and storage management, SDI-enabled private cloud infrastructure in pay-per-use models, AI-driven cloud management, and agile operations solutions that embrace their cloud adoption journey. This way, hybrid cloud adoption can help BFSI end users achieve digital transformation.
- According to Worldpay's global payment report, mPOS sales are analyzed to grow significantly, as indicated in the graph. Additionally, many developed countries are implementing advanced systems to allow customers to make online payments. The expanding use of smartphones has also contributed to increased cashless transactions. This is expected to boost the adoption of cloud-based system management software during the forecast period.
Asia-Pacific Expected to Witness Highest Growth Rate
- Asia-Pacific is expected to witness growth owing to the growing spending on IT infrastructure, the rise in adoption of cloud-based applications, and the increasing demand for the automation of processes. A cloud management platform is becoming a basic need for enterprises with multi-cloud deployments, addressed by almost all cloud providers. Multi-cloud has become the norm for most enterprises across the Asia Pacific region. It is expected that 84% of CIOs in Asia-Pacific believe multi-cloud would constitute up to 50% of their hosting environment in the next three years.
- As more Asia-Pacific enterprises move to the hybrid cloud, many innovative solutions have emerged to help organizations manage cloud applications' lifecycles in a heterogeneous IT environment. Moreover, growing development in the cloud computing industry and government initiatives would positively drive the market's growth over the forecast period. For instance, according to the Development Research Center (DRC) of the State Council, China's Cabinet, the cloud computing industry in the country is expected to exceed CNY 300 billion (USD 42.3 billion) by 2023, over a threefold increase from its 2018 market value of CNY 96.28 billion. During this forecast period, over 60% of the country's businesses and government agencies depend on cloud computing as an integral part of their daily operations.
- NASSCOM also stated that Business Process Management (BPM) and IT services in India contribute to over 14% and 10% of the global demand and is expected to continue with consistent growth in the worldwide cloud adoption rate. The government supported the need for growing IT and Infrastructure through various incentive programs. The development of IT services in India will positively drive the market's growth.
- COVID-19 accelerated customer demand for digital technologies to ensure resilient enterprise business operations across the region, resulting in cloud-based offerings replacing traditional products. Key verticals such as BFSI, healthcare, and manufacturing sectors are witnessing a surge in demand for cloud-based solutions, owing to remote data storage capabilities and provisioning privileges for hosted applications.
- The National Association of Software and Service Companies (Nasscom) reported that the Indian IT sector generated USD 227 billion in sales in FY22, representing a 15.5% Y-o-Y growth. As stated by IBEF, by 2025, it is anticipated that the Indian software products market will be worth USD 100 billion. Indian enterprises are investing overseas to expand their global footprint and improve their global delivery centers. Therefore, the significant growth in the investments in cloud-based software is analyzed to bolster the demand for the market during the forecast period.
Cloud System Management Software Industry Overview
There are numerous participants in the Cloud System Management Software market, including IBM Corporation, BMC Software Inc., VMware Inc., Cisco Systems Inc., Microsoft Corporation, and Oracle Corporation. Leading cloud systems management suppliers deliver specialized computing solutions and give end-customers creative, effective solutions, spurring market expansion.
In December 2022, to ensure dependable Quality of Service (QoS) throughout the business infrastructure estate, Dynatrace, and Microland, a global leader in digital transformation, teamed to support and enhance IT operations. This partnership will provide unparalleled observability across full-stack enterprise digital application and infrastructure environments.
In November 2022, Datadog, the cloud applications monitoring and security platform, acquired Cloucraft, a visualization service for cloud and system architects. Combining Datadog's real-time observability data with Cloudcraft will shift monitoring further and support the customer's success with cloud migrations, container adoptions, or other structural changes engineers consider every day.
Cloud System Management Software Market Leaders
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IBM Corporation
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Microsoft Corporation
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Vmware Inc.
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BMC Software Inc.
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Cisco Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Cloud System Management Software Market News
- Oct 2022: Datadog, the monitoring and security platform for cloud applications, launched a new product that helps developers and quality engineers quickly create, manage, and run end-to-end tests for their web applications. With this product, engineers can create tests right from the UI without scripting, run tests in parallel, and integrate with popular CI tools, so tests become a part of their existing CI processes.
- Oct 2022: With the unification of observability, security, and business data from cloud-native and multi-cloud systems, Dynatrace introduced the Grail initiative, which will revolutionize data analytics and management. A massively parallel processing (MPP) analytics engine powers Grail, a causal data warehouse.
- Jan 2023: New Relic introduced additional error-tracking features to identify, classify, and address any issues throughout the entire software stack before they impact customers. This error-tracking software gives engineers who operate on many platforms, such as web, mobile, and back-end, a central location to prioritize and resolve issues more quickly.
Cloud System Management Software Market Report - Table of Contents
1. TOC
2. INTRODUCTION
- 2.1 Study Assumption and Market Definition
- 2.2 Scope of the Study
3. RESEARCH METHODOLOGY
4. EXECUTIVE SUMMARY
5. MARKET DYNAMICS
- 5.1 Market Overview
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5.2 Market Drivers
- 5.2.1 Emerging Technologies Investing into Advanced Data Centers
- 5.2.2 IT Companies Turning to BYOD and CYOD Systems Create Demand for Cloud Management Services
- 5.2.3 Adoption of Multi-cloud Platform
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5.3 Market Restraints
- 5.3.1 Data Privacy and Security Concers
- 5.3.2 Increased Cyber Attacks
- 5.4 Industry Value Chain Analysis
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5.5 Industry Attractiveness - Porter's Five Forces Analysis
- 5.5.1 Threat of New Entrants
- 5.5.2 Bargaining Power of Buyers/Consumers
- 5.5.3 Bargaining Power of Suppliers
- 5.5.4 Threat of Substitute Products
- 5.5.5 Intensity of Competitive Rivalry
- 5.6 Impact of COVID-19 on the Market
6. MARKET SEGMENTATION
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6.1 By Component
- 6.1.1 Cloud IT Operations Management
- 6.1.2 Cloud IT Automation and Configuration Management
- 6.1.3 Cloud IT Service Management
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6.2 By Deployment Model
- 6.2.1 Public
- 6.2.2 Private
- 6.2.3 Hybrid
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6.3 By Organisation Size
- 6.3.1 Large Enterprises
- 6.3.2 Small-Medium Enterprises
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6.4 By End-user Industry
- 6.4.1 Healthcare
- 6.4.2 Banking and Financial Services
- 6.4.3 Retail and Consumer Services
- 6.4.4 Manufacturing
- 6.4.5 Transport and Logistics
- 6.4.6 Media and Entertainment
- 6.4.7 IT and Telecommunication
- 6.4.8 Other End-user Industries
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6.5 Geography
- 6.5.1 North America
- 6.5.1.1 United States
- 6.5.1.2 Canada
- 6.5.1.3 Mexico
- 6.5.1.4 Rest of North America
- 6.5.2 Europe
- 6.5.2.1 United Kingdom
- 6.5.2.2 France
- 6.5.2.3 Germany
- 6.5.2.4 Russia
- 6.5.2.5 Rest of Europe
- 6.5.3 Asia-Pacific
- 6.5.3.1 China
- 6.5.3.2 India
- 6.5.3.3 Japan
- 6.5.3.4 Australia & New Zealand
- 6.5.3.5 Rest of Asia-Pacific
- 6.5.4 Latin America
- 6.5.4.1 Brazil
- 6.5.4.2 Mexico
- 6.5.4.3 Rest of Latin America
- 6.5.5 Middle-East and Africa
- 6.5.5.1 United Arab Emirates
- 6.5.5.2 Saudi Arabia
- 6.5.5.3 South Africa
- 6.5.5.4 Rest of Middle-East and Africa
7. COMPETITIVE LANDSCAPE
- 7.1 Vendor Market Share
- 7.2 Mergers and Acquisitions
- 7.3 Company Profiles
- *List Not Exhaustive
- 7.4 Amazon Web Services
- 7.5 Microsoft Corp.
- 7.6 Cisco Systems Inc.
- 7.7 Oracle
- 7.8 Broadcom Inc.
- 7.9 Sematext
- 7.10 Dynatrace
- 7.11 New Relic Inc.
- 7.12 Splunk Inc.
- 7.13 Data Dog
- 7.14 Solarwinds
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cloud System Management Software Industry Segmentation
Software and technologies used together to manage cloud systems are called cloud management software. For enterprises that depend on meeting business needs, it provides flexibility to manage, monitor, and enhance resource management. Events and Incident Management, Issue Management, and Application Performance Management are examples of solutions. Managed and professional services are taken into consideration.
The Cloud System Management Software Market is segmented by Component (Solution and Services), Deployment Model (Public, Private, and Hybrid), Enterprise Size ( Small and Medium Enterprise and Large Enterprise), End-user Industry (BFSI, Healthcare and Life Sciences, Retail and Consumer Goods, IT and Telecommunication, and Media and Entertainment) and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Component | Cloud IT Operations Management | |
| Cloud IT Automation and Configuration Management | ||
| Cloud IT Service Management | ||
| By Deployment Model | Public | |
| Private | ||
| Hybrid | ||
| By Organisation Size | Large Enterprises | |
| Small-Medium Enterprises | ||
| By End-user Industry | Healthcare | |
| Banking and Financial Services | ||
| Retail and Consumer Services | ||
| Manufacturing | ||
| Transport and Logistics | ||
| Media and Entertainment | ||
| IT and Telecommunication | ||
| Other End-user Industries | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| France | ||
| Germany | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia & New Zealand | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Mexico | ||
| Rest of Latin America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| South Africa | ||
| Rest of Middle-East and Africa |
Cloud System Management Software Market Research FAQs
What is the current Cloud System Management Software Market size?
The Cloud System Management Software Market is projected to register a CAGR of greater than 25.10% during the forecast period (2024-2029)
Who are the key players in Cloud System Management Software Market?
IBM Corporation, Microsoft Corporation, Vmware Inc., BMC Software Inc. and Cisco Systems Inc. are the major companies operating in the Cloud System Management Software Market.
Which is the fastest growing region in Cloud System Management Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cloud System Management Software Market?
In 2024, the North America accounts for the largest market share in Cloud System Management Software Market.
What years does this Cloud System Management Software Market cover?
The report covers the Cloud System Management Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cloud System Management Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cloud System Management Software Industry Report
Statistics for the 2024 Cloud System Management Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cloud System Management Software analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
