Managed Application & Network Services Industry Profile

Companies in this industry provide application hosting and data storage services, data processing, time-sharing computing services, and related infrastructure and network services. Major companies include Amazon Web Services, Google (through Google Cloud Platform), IBM, Microsoft (through Microsoft Azure) and Oracle (all US-based), along with Alibaba Cloud (China).

The worldwide end-user spending on public cloud services is forecast to grow over 20% to about $675 billion by the end of 2024, up from about $560 billion in 2023, according to Gartner. The US and Europe are established markets for cloud services.

The US managed application and network services industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $160 billion.

COMPETITIVE LANDSCAPE

Companies with the access to capital for new equipment and the ability to maintain large networks of data centers enjoy significant advantages. A highly skilled workforce is required to ensure data center uptime and access to data. Some companies may focus on a single category of services, such as managed website hosting, while others may offer a broad range of services to compete effectively in the market.

The US industry is concentrated: the largest 50 companies generate about 50% of revenue.

Companies in the industry may compete with providers of general information technology services and with the hosting businesses of data network operators. Potential customers who choose to maintain their own data centers are another source ...