Market Trends of Operational Intelligence Industry
Cloud Deployment Segment is Expected to Hold Major Market Share
- Cloud deployment is expected to hold a prominent market share due to the added benefits, such as cost-saving, accessibility, scalability, and centralized service. Organizations across the world are increasingly deploying cloud services. The pandemic has also fueled the deployment of cloud services across various IT organizations. The broad availability of cloud services to support various specialized business applications is helping organizations transform into digital enterprises.
- The hybrid cloud market has experienced significant overall growth in the past few years compared to other cloud services, as it offers certain benefits to organizations with a massive set of data. Using a hybrid cloud allows companies to scale computing resources and helps eliminate the need to invest massive capital in handling short-term spikes in demand when the business needs to free up local resources for more sensitive data or applications.
- According to Flexra Software, 80% of enterprise respondents indicated they adopted Microsoft Azure for public cloud usage in 2022. AWS, Microsoft Azure, and Google Cloud, or hyperscalers, are among the leading cloud computing platform providers globally.
- Further, an increasing number of banks are migrating their data, process, and infrastructure to the cloud to benefit from cloud implementation, which further eases the integration of enterprise applications. For instance, in November 2022, Temenos announced that Baiduri Bank, one of Brunei's major financial goods and services providers, has agreed with Temenos for core banking on the Temenos Banking Cloud. Baiduri Bank would be one of the initial banks in Brunei to operate its core banking systems on the cloud using the SaaS model.
- Companies using cloud services must pay only for resources they temporarily use instead of purchasing, programming, and maintaining additional resources and equipment that remain idle over long periods. This helps the companies in minimalizing costs that do not generate revenue.
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Asia-Pacific is Expected to Be the Fastest-growing Market
- The Asia-Pacific region is expected to witness the highest growth during the forecast period, owing to various government digitization initiatives. Additionally, the rapid increase in digitization in this region is expected to drive the operational intelligence market significantly.
- For instance, Digital India aims to electronically provide government services to citizens by improving the IT infrastructure and increasing internet connectivity.
- Moreover, the initiative aims to move legacy and on-premise systems to a cloud-based or integrated model. The cloud platform is expected to host the delivery of e-services to the citizens. Economies such as China, India, Japan, and South Korea are witnessing increasing investor interest in operational intelligence. China is going through rapid development and is the global leader in new, emerging IT technologies, such as edge computing, AI, and IoT. As a result, a surge in demand for improved IT services is expected.
- Digital transformation has become one of the top priorities in the country. It is moving at a rapid pace as a more significant number of companies are implementing formal strategies to support their efforts. According to the Xinhua agency, Tsinghua University, International Data Corporation, and Chinese IT firm Inspur Information released a joint report that comprehensively assessed the computing power, efficiency, and infrastructure of the world's 15 major economies. The report notes that computing power has become the driving force of the digital economy and that increasing investment in this sector would have an amplified and long-term effect on economic growth.
- Strong government backing and substantial private sector investment are behind the growth of China's cloud computing industry. The South Korean government employed cloud computing technologies to enhance its e-government services, banking on the country's super-fast internet connectivity and stable LTE availability. This is expected to contribute to the market's growth over the forecast period.
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