The infrastructure solution integration service market is expected to reach a CAGR of 15.2% during the forecast period from 2021 to 2026. The Internet of Things (IoT), digitalization, mobility, analytics, machine-to-machine communication, Autonomous computing, the accelerating convergence of technologies, devices, networks, and data are changing the way of operating for businesses which have created an increased need of having the right infrastructure in place and is thus boosting the growth of the market.
- The increasing number of business organizations worldwide are looking to invest in efficient and cost-effective infrastructure management solutions as the infrastructure size and complexity are increasing day by day. For instance, A business located in the United States might host its website on public cloud infrastructure while storing customer information and backups across private cloud infrastructure in data centers in India and the United Kingdom. To manage the increasing level of decentralization in terms of infrastructure and utilize the resources to it's best, proper integration is increasing.
- The logistics industry has a growing need to digitalize processes and speed up data connectivity with customers, stakeholders, and markets. In April 2020, HUB logistics and Youredi announced a partnership to utilize Youredi integration services to give HUB logistics advantage in the demanding and rising logistics market. HUB logistics is one of the fastest-growing logistics vendors in Nordics and is a step ahead of digitalization's logistics market. They have invested heavily in their automated logistics center in Finland, and data connectivity is one of the major development areas in their digitalization projects. Youredi delivers a managed service enabling industry expertise, agility, and cost-efficiency for the data connectivity with external companies.
- While IT teams have been extensively working to deliver remote work solutions for businesses worldwide with the outbreak of COVID-19 pandemic, they're not always able to do so themselves. Managing IT infrastructure, troubleshooting issues, and updating software often requires IT and teams to be on-site at their data center, something even more challenging with social distancing requirements. In June 2020, Nutanix announced new solutions that will allow IT teams, to deploy, upgrade, and troubleshoot their cloud infrastructure while working from anywhere, whether at home or from a central office location. These solutions will be delivered via Nutanix Foundation Central, Insights, and Lifecycle Manager, all of which will be available as part of Nutanix HCI software at no additional cost to customers.
- Due to the ongoing spread of COVID-19, the demand for infrastructure solutions and integration services sees an upward trend as most countries have announced lockdowns, and people are working from home. This has boosted third-party applications and services, cloud adoption and the amount of data have increased, which is growing the demand for infrastructure solutions and integration services. For instance, in April 2020, Zoom Video Communications, Inc. turned to Oracle Cloud Infrastructure to support its growth and evolving business needs as the enterprise video communications company continues to experience the most significant growth in the business the company has ever seen, requiring massive increases in their service capacity.
Key Market Trends
Increasing Adoption of Mobility, Big Data, and Cloud Solution is Expected to Drive the Growth of the Market
- Enterprises are increasingly incorporating hybrid and multi-cloud to deliver the enhance the experiences for their customers. Robust infrastructure solutions are essential for this transformation due to the rising complexity to manage, secure, and scale. To help enterprise customers with these challenges, in July 2020, Google expanded their partnership with Cisco to bring the best of Cisco and Google Cloud technologies together, with a solution: Cisco SD-WAN Cloud Hub with Google Cloud. This joint solution will help our customers simplify enterprise networking and advance security capabilities while enabling IT teams to minimize infrastructure costs and meet application service-level objectives.
- Demand for the hybrid cloud solution and services has grown over the enterprise's environment evolution. Organizations are now facing the challenges of utilizing big data in their database for competitive advantage. It has pushed enterprises to adapt to hybrid cloud services. Some end-users such as BFSI, healthcare, instead of opting for a complete switch to the cloud, choose hybrid services. Such adoption measures have created an opportunity for a hybrid integration platform in the market. As technology is advancing, the number of devices that consumers use to initiate transactions is also proliferating, making the number of transactions increase. This rapid growth in data requires better acquisition, organization, integration, and analysis.
- As businesses look to optimize their infrastructure from supply chains to core banking systems, enterprises are at a critical juncture in their cloud journey as they begin to modernize their most mission-critical workloads in search of more incredible speed and flexibility. With data often spread across disparate computing environments, clients embrace a hybrid strategy in which they're enabling applications to share data across clouds and on-premises domains. VMware and IBM have helped almost 2,000 enterprises on their hybrid cloud transformation, with clients such as American Airlines, Veritas, Fujifilm, Universidad Europea, and others adopting IBM Cloud and VMware solutions.
- In November 2019, IBM announced an extended partnership with VMware to accelerate hybrid cloud innovation and adoption across global enterprises. Through new and updated technology offerings, IBM makes it easier than ever for enterprises of all sizes to more securely move VMware workloads to the cloud and leverage available technologies to modernize their business operations. For instance, Veritas leveraged VMware tools to migrate their mission-critical workloads from on-premises IT infrastructure to IBM's public cloud, and Universidad Europea is adopting a hybrid cloud strategy for the next phase of its cloud transformation by migrating its IT infrastructure to IBM public cloud. Such developments are expected to drive the market significantly.
North America is Expected to Hold Major Share
- The expansion of mobile broadband, growth in cloud computing, and Big Data analytics drive the demand for new data center infrastructures in the region. Moreover, the declining prices of servers have increased the adoption of cloud computing businesses across North America, which is expected to fuel the demand for DCIM over the forecast period. For instance, in April 2019, Amazon announced to invest in three renewable energy projects in Ireland, Sweden, and the United States to power all Amazon Web Services (AWS) data centers with 100% renewable energy. Additionally, Facebook also announced to build four additional data centers at its cloud campus in Papillion, Nebraska, to meet the growing demand for larger storage space.
- Moreover, the government is concentrating on building out 5G networks and improving internet services in rural parts of the country that are expected to grow the market for integration services for IT infrastructure solutions. For instance, the US federal government plans to build a centralized 5G wireless network across the country by 2021. Recently, the White House released its National Strategy to Secure 5G of the US, mainly focusing on upgrading and securing 5G infrastructure at home and abroad. Moreover, stable financial and banking sector in both the United States and Canada, due to recovering the oil and gas sector, a primary contributor to the region's economy, is increasingly tending toward quality digital services with the help of infrastructure solution integration service vendors.
- Companies of all sizes in the region migrate rapidly to a cloud-first model, with enterprises adopting a hybrid/multi-cloud environment to grow and operate their business. In April 2020, KDDI America announced it has evolved into end-to-end cloud services and solutions providers that enable digital transformation and ICT solution services for cloud migration, hybrid-cloud planning, and provisioning, with high-speed transactional connectivity services. KDDI America has partnered with the world's leading hyperscale public cloud providers, including Microsoft Azure and Amazon Web Services to help organizations meet their business challenges and provide multiple infrastructure solutions.
- In May 2020, Cloudian announced that HostedBizz, one of Canada's loud Infrastructure-as-a-Service (IaaS) providers, has launched a new sovereign cloud data protection offering on Cloudian's HyperStore object storage platform. The latest service is expected to bring the benefits of HyperStore's advanced scalability and security features to HostedBizz's customers. Headquartered in Ontario, Canada, HostedBizz provides an integrated suite of IT infrastructure services including backup, cloud servers, file sharing, disaster recovery, remote desktop services, and private network access through IT partners resellers.
The infrastructure solution integration service market primarily comprises multiple domestic and international players in a moderately fragmented and highly competitive environment. The market's major players include Oracle Corporation, IBM Corporation, Microsoft Corporation, SAP SE, etc. Technological advancements in the market are also bringing considerable competitive advantage to the companies, and the market is also witnessing multiple partnerships and product innovations.
- August 2020 - SAP SE announced its plan to partner with HPE to deliver SAP HANA Enterprise Cloud, the customer edition. It will be available to customers with HPE GreenLake, which provides cloud services for an edge, data center, and colocation deployments. HPE will supply, install, and manage the customer's landscape's required infrastructure in a secure environment.
- April 2020 - AWS launched Amazon AppFlow, a new integration service that makes it easier for developers to transfer data between AWS and SaaS applications like Google Analytics, Marketo, Salesforce, ServiceNow, Slack, Snowflake and Zendesk. Like similar services, including Microsoft Azure's Power Automate, developers can trigger these flows based on specific events, at pre-set times or on-demand.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Adoption of Mobility, Big Data, and Cloud Solution
4.2.2 Rising Trend of Various Outsourcing Activities
4.3 Market Restraints
4.3.1 Concerns Related to the Data Security and Privacy
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment on the impact due to COVID-19
5 MARKET SEGMENTATION
5.1 By Component
5.2 By Deployment Type
5.3 By End-User Industry
5.3.2 IT and Telecommunication
5.3.6 Transportation and Logistics
5.3.7 Other End-User Industries
5.4.1 North America
5.4.3 Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Oracle Corporation
6.1.2 Microsoft Corporation
6.1.3 IBM Corporation
6.1.4 SAP SE
6.1.5 Amazon Web Services, Inc.
6.1.6 Google, LLC
6.1.7 VMware, Inc.
6.1.8 Adobe Inc.
6.1.9 Dell Inc.
6.1.10 Nutanix, Inc
6.1.11 HostedBizz Inc
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.