Cloud Systems Management Software Market Size, Share & COVID-19 Impact Analysis, By Component (Cloud IT Operations Management, Cloud IT Automation and Configuration Management, and Cloud IT Service Management) By Deployment (Cloud and On-premise), By Enterprise Size (SMEs and Large Enterprises), By End-User (BFSI, IT & Telecom, Retail & Consumer Goods, Manufacturing, Energy & Utilities, Media and Entertainment, Government, Healthcare, and Others), and Regional Forecast, 2022-2029

The Cloud Systems Management software market was valued at USD 11.34 billion in 2021 and is projected to grow from USD 14.60 billion in 2022 to USD 85.02 billion by 2029, exhibiting a CAGR of 28.6% during the forecast period. North America dominated the global market with a share of 54.50% in 2021.

Based on our analysis, the global market had exhibited a growth of 23.2% in 2020 compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with this software experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Key players included in the scope are VMware, Inc., Microsoft Corporation, IBM Corporation, BMC and Software Inc. that provide Cloud Systems Management software. This software assists organizations in controlling cloud operations and the automation of business units. Cloud automation, performance, workload scheduling, configuration management, and event & problem management are a few applications offered by players. The software also provides organizations to manage, monitor, and improve resource management. Enterprises are adopting management software due to several benefits such as enhanced staff productivity, ease of deployment, end-user response, optimal resource usage, lower maintenance costs, and others. Also, market players are collaborating and investing in cloud-managed software to enhance their market presence. For instance,

• In May 2020, Splunk, Inc. and Google Cloud announced a strategic agreement. This agreement allowed businesses to gain meaningful insights from the data and make faster choices with real-time visibility throughout the company. Customers can use Splunk Cloud on Google Cloud to help them unlock the value of their data.

COVID-19 IMPACT

COVID-19 Pandemic to Create a Significant Growth Opportunities for Market Players

The COVID-19 outbreak had a significant impact on the global market. The demand for Cloud Systems Management software has surged in healthcare & life science, government, and others. Further, demand for digital technologies is also growing, resulting in cloud-based applications over on-premise to maintain robust enterprise business operations. Cloud-based applications perceive a spike in demand in key industries, including BFSI, healthcare, and IT & telecom. A cloud-based application provides remote data storage, robust management, and others. Major players in the market are adopting various strategies such as product launch, product upgrade, acquisition, collaborations, mergers, and others to enhance their market presence. For instance,

• In May 2020, Microsoft Corporation launched Microsoft Cloud for the healthcare sector. Microsoft developed industry-specific cloud products for healthcare enterprises, enhanced workflow efficiency, and streamlined interactions. Data analytics for both structured and unstructured data are included in Microsoft Cloud for healthcare.


• In April 2020, VMware announced vRealize Operations Cloud. The vRealize Operations Cloud platform is a unified operations platform for managing VMware Cloud and multi-cloud environments. It will provide advantages such as reduced unexpected downtime, cheaper cost, faster time to value, and risk mitigation.

LATEST TRENDS

Integration of Artificial Intelligence (AI) for IT Operation (AIOps) with Cloud Systems Management Software to Augment Growth  

Artificial Intelligence (AI) for IT operation (AIOps) capabilities provide many services that enable enterprises to automate their IT processes. Root cause analysis, anomaly identification, actionable insights, and others are a few AIOps solutions features. Companies are deploying these advanced solutions to predict upcoming threats before they happen. AIOps aid businesses in avoiding the high costs of downtime caused by application and infrastructure concerns. Companies can automate alerts, issue tickets, and gain insight by deploying AIOps systems. Furthermore, numerous firms are planning to invest in IT infrastructure. This would create significant opportunities for AIOps solution providers in this ecosystem to merge with a cloud technology provider to expand their Cloud Systems Management software offerings.

Further, companies invest in AIOps systems, which aid in monitoring, automating IT processes, and addressing issues without human participation. For instance,

• In August 2020, Apptio launched Kubernetes Financial Management to help the affiliated company extend its commitment to containerized workloads. This helps expand the use of containers in the industry, as their benefits are apparent throughout application development and operations.

CLOUD SYSTEM MANAGEMENT SOFTWARE MARKET GROWTH FACTORS

Increasing Deployment of Data Center Infrastructure and Cloud Video Streaming Services to Aid Growth of Market

Cloud service providers are heavily invested in advanced data centers enabled with emerging technologies to enable compute-intensive applications such as IoT, AI, and Big Data. The data center infrastructure improves agility and offers services that maximize revenue growth, value, and energy efficiency. The rising number of data center deployments is surging the demand for software.

Further, cloud video streaming services, including Amazon Prime Video, HBO, Netflix, and Disney+ provide limitless real-time access to original and high-quality content. This unique streaming service has improved the home entertainment experience and resulted in a larger customer base. These services are based on an advanced cloud platform. With the rising adoption of cloud video streaming services, the Cloud Systems Management software market growth is expected to boost during the forecast period. For instance,

• In May 2020 – Microsoft Corporation launched a cloud service tailored to the healthcare industry. Caregivers can use this technology to improve operating efficiency and improve patient relationships.

RESTRAINING FACTORS

Data Privacy and Security Concerns Associated with Cloud Solutions to Impede Growth

Cloud Systems Management solutions assist businesses in enhancing their operations by delivering cost savings, dependability, manageability, agility, and other attributes. However, ensuring the privacy and security of the company data is one of the issues that key players are confronting. Further, as a result, businesses are uncertain about migrating sensitive data on the cloud. Despite several improvements and innovations in cloud technology, attaining high levels of interoperability and security have proven to be a serious challenge. For instance, cloud services are the third-highest targeted area by hackers, according to the 2020 Trustwave Global Security Report.

SEGMENTATION

By Component Analysis

Cloud IT Operations Management to Dominate Owing to Rising Demand in BFSI and IT Industries

Based on component, the market is categorized into cloud IT operations management, cloud IT automation and configuration management, and cloud IT service management.

Cloud IT operations management is expected to grow significantly, owing to rising adoption across BFSI and IT firms for secure transactions.

However, cloud IT automation and configuration management and cloud IT service management are anticipated to grow, owing to increasing number of startups adopting cloud services. Also, key players are investing in research and development activities related to cloud technology that will drive market growth.

Further, cloud automation helps deliver and manage cloud services workloads and services by reducing or eliminating the need for manual labor. Also, cloud automation is used in private, public, and hybrid cloud contexts.

By Deployment Analysis

Rising Demand for Cost-Effective and Secure on Premise Deployment across SMEs to Assist Market Growth

Based on deployment, the market is categorized into cloud and on-premise.

On-premise is expected to dominate the market during the forecast period, as it provides organizations with an advanced level of data security. Also, due to security concerns and budget constraints, small enterprises rely on on-premise deployment options.

However, cloud-based deployment is likely to grow with the highest growth rate in the near future as governments and financial enterprises focus on this model. Also, the growth is attributed to the rising adoption of cloud-based IT service management applications by SMEs to boost productivity and save operating expenses.

By Enterprise Size Analysis

Rising Demand for IT Software among Large Enterprises to Gain Traction

By enterprise size, the market is categorized into large enterprises and small & medium enterprises (SMEs).

The large enterprises segment is expected to account for the largest share during the forecast period. Large organizations are investing in this software to address issues such as privacy, cloud connectivity failure, and data security.

During the projection period, small and medium enterprises are anticipated to have a significant growth rate. Further, to reach more customers, retail, e-commerce, and healthcare companies are focused on employing Cloud Systems Management software to expand their services through the cloud channel.

By End-User Analysis

Increasing Adoption of Management Software across BFSI and Healthcare to Propel Growth

Based on end-user, the market is categorized into banking, financial services and insurance (BFSI), IT & telecom, retail & consumer goods, manufacturing, energy & utilities, media and entertainment, government, healthcare, and others.

BFSI is expected to hold the largest cloud systems management software market share during the forecast period. The demand for AI, data modeling, and Big Data is rising among banking and financial services firms to strengthen their business model. These factors will allow banks and financial services to monetize data by forecasting client spending patterns and gaining insights from unstructured information. As a result, multi-cloud budgetary control and FinOps based on cloud systems are highly adopted across BFSI. The simplification of data science and machine learning in banking and other financial sectors attracts mission-critical cloud management development.

Further, IT & telecom and healthcare are expected to observe significant revenue growth during the forecast period. Cloud management software enables healthcare end-users with patient portals, IoT devices, electronic medical records, mobile apps, and Big Data analytics. It allows for easy scalability and flexibility, which helps the decision-making process.

REGIONAL INSIGHTS

Geographically, the market is segmented across five major regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America has seen rapid growth in trend due to early adoption of emerging technologies and a highly competitive landscape. The penetration of Cloud Systems Management software in the region is due to key providers, including VMware, Inc., Microsoft Corporation, IBM Corporation, and BMC Software Inc. The readiness level of end-users to adopt emerging technologies has also encouraged key providers to develop and offer advanced cloud services.

Europe is expected to have significant growth as cloud-based start-ups grow in numbers across France, Italy, and Benelux. Further, rising digital government initiatives & regulatory environments and the growing adoption of cloud-based technology in the region are anticipated to drive the growth. Also, industry leaders are focusing on expanding their business in the region. For instance,

• In July 2020, VMware, Inc. launched advanced capabilities to enhance the economic value of VMware Cloud on AWS. Further, the company also addressed an ever-changing set of criteria for business continuity, application modernization, resiliency, and cloud migration.

Asia Pacific is anticipated to have considerable growth due to rising levels of urbanization, technical innovation, and government investment for the digital economy. Several firms have adopted cloud-based methods due to rapid improvements in telecommunications, cloud computing, and IoT. There has been a substantial increase in the usage of Cloud Systems Management solutions due to increasing acceptance of cloud technologies and the growing number of business activities.

For instance, the cloud computing sector in China is predicted to hit USD 42.3 billion by 2023, according to the State Council's Development Research Center (DRC). This is more than a threefold rise from its 2018 market value. Over 60% of the country's companies and government organizations will rely on cloud computing as part of their regular operations during this prediction.

KEY INDUSTRY PLAYERS

Emphasis of Key Players on Partnerships and Acquisition Will Strengthen Competition

Key players in the market, such as Microsoft Corporation, IBM Corporation, Google LLC, Oracle Corporation, BMC Software, Inc., are focusing on offering cloud-managed software worldwide. These companies provide extensive deployment services over the cloud and on-premise. Further, market players are currently creating and providing cloud-based solutions using modern technologies such as artificial intelligence, machine learning, and others to improve their goods and deliver enhanced solutions to end-users.

• In September 2021, Google LLC partnered with T-Systems to deliver sovereign cloud for Germany. This partnership allowed end-users to host critical workloads on a national cloud while still utilizing public cloud services' scalability, flexibility, and dependability.


• In October 2021, Element partnered with Parametrix and launched innovative cloud outage insurance in Europe. Further, this partnership is meant to cover financial losses caused by third-party IT and cloud infrastructure provider outages.

List of Key Companies in Cloud System Management Software Market:

• VMware, Inc. (U.S.)


• Microsoft Corporation (U.S.)


• IBM Corporation (U.S.)


• BMC Software, Inc. (U.S.)


• Splunk, Inc. (U.S.)


• ServiceNow (U.S.)


• Google LLC (U.S.)


• Micro Focus International Plc. (U.K.)


• Oracle Corporation (U.S.)


• Broadcom, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – Microsoft Corporation collaborated with Micro Focus to deliver digital transformation strategies and cloud for government agencies. This collaboration with Microsoft enables mainframe programs to operate on Microsoft Azure in a secure and scalable manner.


•  February 2021 – IBM Corporation, Siemens AG, and Red Hat, Inc. formed a strategic alliance to provide manufacturers and plant operators with an open, adaptive, and secure solution. This alliance will allow companies to derive real-time value from operational data via a hybrid cloud.

REPORT COVERAGE

The research report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

Report Scope and Segmentation

ATTRIB UTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD billion)
Segmentation	By Component, Deployment, Enterprise Size, End-User, and Region
By Component	Cloud IT Operations Management Cloud IT Automation and Configuration Management Cloud IT Service Management
By Deployment	Cloud On-Premise
By Enterprise Size	SMEs Large Enterprises
By End-User	Banking, Financial Services and Insurance (BFSI) IT & Telecom Retail & Consumer Goods Manufacturing Energy & Utilities Media and Entertainment Government Healthcare Others (Travel and Transportation, Education, Logistics)
By Region	North America (By Component, Deployment, Enterprise Size, End-User, and Country) U.S. (By Component) Canada (By Component) Mexico (By Component) South America (By Component, Deployment, Enterprise Size, End-User, and Country) Brazil (By Component) Argentina (By Component) Rest of South America Europe (By Component, Deployment, Enterprise Size, End-User, and Country) U.K. (By Component) Germany (By Component) France (By Component) Italy (By Component) Spain (By Component) Russia (By Component) Benelux (By Component) Nordics (By Component) Rest of Europe Middle East & Africa (By Component, Deployment, Enterprise Size, End-User, and Country) Turkey (By Component) Israel (By Component) GCC (By Component) North Africa (By Component) South Africa (By Component) Rest of MEA Asia Pacific (By Component, Deployment, Enterprise Size, End-User, and Country) China (By Component) India (By Component) Japan (By Component) South Korea (By Component) ASEAN (By Component) Oceania (By Component) Rest of Asia Pacific