Market Overview:
The global market for Managed Software as a Service valued at USD 248.95 Billion in 2022 is projected to reach a revised size of USD 474.62 Billion by 2030, growing at a CAGR of 8.4% over the period 2023-2030.
Managed Software as a Service (MSaaS) applications occupy a strategic niche between standard Software as a Service (SaaS) offerings and fully customized software solutions. Much like SaaS, MSaaS provides a standardized software solution addressing approximately 80% of business needs. However, the distinctive factor lies in MSaaS providers' commitment to configuring their core software or creating bespoke features to fulfill users' precise requirements, achieving a 100% tailored fit. MSaaS applications combine the cost-effectiveness and flexibility of SaaS with a high level of configurability, ensuring a customized solution that seamlessly aligns with a company's operations.
In the Managed Software as a Service Market, customers hold software licenses, benefiting from ongoing support, upgrades, and training. While relatively pricier, managed SaaS services offer comprehensive solutions, encompassing SaaS advantages while assisting in software maintenance, upgrades, and integration for enhanced workflows. MSaaS uniquely enables the integration of multiple SaaS products, promoting seamless collaboration that optimizes productivity and operational efficiency, a facet that conventional SaaS providers might not provide. This collaborative synergy enhances a company's overall productivity, making MSaaS a catalyst for growth in the managed software as a service market across the foreseeable future.
Top Key Players for Managed Software as a Service Market:
Adworthy Inc, Symantec Corporation, Cloudexa Technology Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, TruQC LLC, SAP SE, Kyndryl Inc., Microsoft Corporation, Google LLC, Oracle Corporation, Amazon Web Services, Xorbix Technologies Inc., Fujitsu Ltd, and Other Major Players.
Market Dynamics and Factors for Managed Software as a Service Market:
Drivers:
Substantial Investments Of End-Users In Cloud-Based Solutions Along With Expanding Product Lines
The Managed Software-as-a-Service market is bee driven by the surge in end-use businesses' investments in cloud-based solutions, with projected spending of about USD 102.80 billion on cloud application services in 2020. Major market players are intensifying investments to broaden their product offerings, while technological progressions in AI, cloud computing, big data, and related domains further fuel demand and facilitate the market's expansion, establishing end-use businesses' strategic tech embrace as a potent driver.
Opportunities:
Growing Demand for Customized, Comprehensive Application Suites
The expanding market for Managed Software as a Service (MSaaS) is propelled by the growing need for comprehensive and personalized application suites that enhance productivity. As businesses seek streamlined workflows and optimized operations, MSaaS offers a unique opportunity by delivering a precisely defined suite of applications. This approach ensures seamless integration, efficient processes, and specialized functionalities, empowering companies to achieve heightened productivity levels while addressing their specific operational requirements, thereby driving demand and growth within the MSaaS market.
Segmentation Analysis of the Managed Software as a Service Market:
By Deployment mode, Hybrid cloud is expected to gain substantial share, there is a surge in the adoption of hybrid cloud for deployment, driven by the strategic appeal of integrating private and public cloud environments. This trajectory positions hybrid cloud to secure a substantial share, catering to diverse organizational requirements while bolstering the expansion of the MSaaS market.
Regional Analysis of the Managed Software as a Service Market:
Asia-Pacific is poised to exhibit the fastest growth rate in the Managed Software-as-a-Service (MSaaS) market, driven by a dynamic blend of burgeoning technological adoption, increasing investments in cloud-based solutions, and the region's vast untapped potential. This growth trajectory is fueled by a rising emphasis on digital transformation, expanding economies, and a proactive approach towards embracing innovative software services, collectively propelling Asia-Pacific to a leading position in the rapid evolution and expansion of the MSaaS market.
Key Industry Development:
In November 2021, Kyndryl announced a landmark global strategic partnership that will combine their market-leading capabilities in service of enterprise customers. Microsoft becomes Kyndryl’s only Premier Global Alliance Partner, increasing Microsoft’s access to the $500 billion managed services market where Kyndryl leads
