Market Trends of Corporate Performance Management Industry
Cloud Segment is Expected to Hold a Significant Share of the Market
- The increasing realization among firms about the importance of saving money and resources by transferring their data to the cloud instead of building and supporting new data storage drives the demand for cloud-based solutions and the adoption of on-demand protection services in the region. Owing to multiple benefits, cloud platforms and ecosystems are expected to serve as a launchpad for an outbreak in the pace and scale of digital innovation over the next few years. Security has been critical at each step of the cloud adoption cycle as IT provision has moved from on-premise to outside the company's walls.
- According to the Flexera 2022 State of the Cloud Report, migrating workloads to the cloud is widespread across industries. This is especially significant in financial services, where it is the top cloud initiative for 2022. About 62% percent of the 154 survey respondents from financial services businesses said they intend to make progress on this measure in the future year.
- This workload movement could indicate growing trust in cloud providers' security capabilities and policies to provide adequate protection. Further, one-third (33%) of financial services organizations expect to use a mix of on-premise and cloud/software-as-a-service (SaaS) for corporate financial data. Even more, (35%) anticipate utilizing a combination of on-premise and cloud/SaaS for customer data, such as personally identifiable information and protected health information (PHI). About 44% of financial services or organizations' data are in the cloud, a number expected to grow to 52% in the coming year.Similarly, 78% of financial services businesses run workloads on Amazon Web Services (AWS), in 2024, 49 percent of respondents are already running significant workloads on Amazon Web Services (AWS).
- While 76% run workloads on Azure, placing these two public clouds virtually on a level. Google cloud platform ranks third, with 43% of financial services businesses running workloads on it. Regarding where the instances operate, 46% of financial services firms use more than 100 instances in AWS, while 51% of financial services organizations run more than 100 instances in Azure. 22% of financial services businesses spend more than USD 6 million annually on AWS, whereas 18% spend more than USD 6 million on Azure.
- As mission-critical activities such as online and digital banking and payment processing migrate to the public cloud, established organizations discover they can supply products and services more quickly. For example, Wells Fargo is one of the world's largest banks. The bank stated an ambitious digital infrastructure target of moving all its workloads to several public clouds within the next ten years. The bank will decommission its on-premises data centers and shift services to Microsoft Azure and Google Cloud Platform, where each provider has distinct strengths.
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North America is Expected to Hold Significant Share of the Market
- North America is expected to witness significant growth in the corporate performance management industry market and register favorable development in the forecast year. This is due to increased demand, competition, and cost optimization strategies adopted by companies operating in the region.
- However, the United States region is expected to witness growth in the market. This region's corporate performance management market has historically undergone significant growth and challenging development as vendors continue to offer various functional and viable solutions based on business requirements. These vendors have extended their offerings with information systems analytics to help customers generate better reporting and stay ahead of the competition. This is a key factor propelling the growth of the region's corporate performance management software market.
- According to the US Small Business Administration Office of Advocacy, in 2022, the number of small enterprises in the United States reached 33.2 million, accounting for nearly all (99.9%) firms in the country. The increase in the number of small firms in the United States in 2022 reflects steady growth, with a 2.2% increase from the previous year and a 12.2% increase from 2017 to 2022. Such huge number of small and medium-sized enterprises in the region would create an opportunity for the studied market to grow.
- Progressive banks in the region are relying on the cloud services to help upraise their revenue management system through integrating their revenue management and billing process across the cloud that allows them to cut implementation time and free up resources, thereby, focusing more on innovations, rolling out solutions faster, reduce IT complexity, drive greater business agility, transform user experience, and rapidly implement new business models.
- Moreover, by integrating the processes with compliance and audit tasks, these projects consume a significant amount of resources, as meeting the deadline becomes the most crucial objective and one of the primary reasons to adopt audit, compliance, and governance solutions. The repetitive nature of these tasks, as companies carry out these assessments at infrequent intervals to track their growth, is the major driving factor in maximizing revenue management. Further, it helps in accurately projecting the company's future finances, thereby obtaining real-time visibility across the organization, measuring the successes and failures of current business strategies, and managing financial risk.
- In January 2023, Wolters Kluwer CCH Tagetik corporate performance management solution helped EY Canada clients to streamline financial close, consolidation, regulatory compliance, and planning. In addition to EY's operations in the United States, Italy, and Belgium, EY Canada will utilize the Wolters Kluwer market, one of the prominent players in CCH Tagetik corporate performance management (CPM) solutions to support and accelerate significant financial transformations. EY expects to continue introducing the market-leading CCH Tagetik technology to additional global markets in 2023.
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