Multi-Cloud Management Market to Reach $939 Million This Year
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker’s Multi-Cloud Management Industry Review in a nutshell
- By 2021, market will increase to $3.4 billion
- VMware introduces new hybrid cloud system
- Cloud providers need new systems to adapt to changing market
How is the Multi-Cloud Management Market ?
The multi-cloud management market size is estimated to reach $939.3 million this year, MarketsandMarkets forecasts. By 2021, the market will reach $3.4 billion, growing at a compound annual growth rate (CAGR) of 29.6%.
This year the largest market is North America. The region has been actively switching to cloud services and has a high Internet penetration. Asia-Pacific, however, is forecasted to experience the greatest future growth.
Growth is attributed to an increase in automation and the avoidance of vendor lock-ins. Application portability is the market’s greatest challenge.
The largest service market is task migration and integration. This segment is subdivided into the performance management, storage management and project management markets.
VMware announced a new hybrid cloud operation service, Cross Cloud Services, at VMworld Europe 2016.
The service is under the banner of VMware’s Cross Cloud Architecture and comprises VMware Cloud Foundation and VMware Cross Cloud Services.
It is designed to allow IT departments to run, manage, and secure, both on- or off-premises, traditional and modern applications.
It is the world’s most complete and capable hybrid cloud architecture, according to VMware.
VMware expects the service will be used by companies that do not wish to build a data center. It expects the first adopters will be the financial, healthcare and energy industries.
The service will be available by mid-2017.
The Cloud Foundation manages private cloud operations.
Recently, VMware partnered with Amazon Web Services to integrate VMware services into Amazon Web Services.
A Changing Global Cloud Market
Cloud services entered the commercial market a decade ago and was marketed as a way for companies to eliminate the need for data centers.
Cloud providers believed the move would mean there would no longer be a need for management software.
However, many companies use both the cloud and their own data centers. This means a new generation of services is required, according to Guido Appenzeller, chief technology strategy officer: NSBU at VMware.
Holger Fahner, head of cloud and data centre networks at Daimler IT infrastructure, agrees.
“Public cloud providers don’t really understand the concept of global connection,” Fahrer told IT Online.
Companies must ensure they provide secure service for all customers no matter their location.
ReportLinker Review – Global Software and IT Services Market (source: MarketLine)
- The software and services market is comprised of two segments: the software segment and IT services which includes cloud computing, IT consulting and support, and IT outsourcing and processing.
- In 2015, the software and services segment had revenues totaling $1.6 trillion globally. Between 2011 and 2015, this represented a (CAGR) of 6.6%.
- In 2015, the IT services segment had revenue totaling $935.7 billion. This is equivalent to 58.3% of the overall industry’s value.
- The largest markets in terms of software segment revenue are China and the U.S. Together they equal at least two thirds of the segment’s market value globally.