Managed Application & Network Services

Managed Application & Network Services
Brief Excerpt from Industry Overview Chapter:

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).

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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Business process management services account for about 25% of the industry's revenue, followed by application service provisioning (about 30%) and web site hosting services (about 30%). Other management services and hosting services with integration of related applications account for about 15%. Data hosting companies may also offer colocation services, data storage, media storage and delivery services, and other technology support services.