Hosted applications can also be termed as internet-based applications, web applications and online applications. There are numerous benefits of application hosting such as the reduced cost. Instant deployment is a second with easy maintenance and reduced administration. For instance, low maintenance, affordable, little risk, easy to access, easy integration and support.
Steady expansion of cloud computing creating new growth areas, augmenting the offerings and micro-differentiating the vendors, managed services gaining ground over traditional approaches of application hosting and innovative service delivery positioning to edge over rivals in a fiercely competitive market are expected to boost the growth of the market over the forecast period.
The different segment of Application Hosting market are hosting type, application, organization size, end-user and region.
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Market segmented on the basis of application (web-based application, mobile application):
The web-based application type is expected to have the larger market share in the application hosting market majorly due to the presence of a large number of enterprise web applications which are deployed globally. Web-based applications are cost-effective in comparison to mobile-based applications and help organizations achieve their business objectives.
Market segmented on the basis of organization size (Small and Medium sized enterprises, Large):
The large enterprises segment is expected to have the larger market size during the forecast period. Large enterprises are highly focused on data security and data security compliances; they are investing heavily in securing the external hosting infrastructure and associated services. They are also deploying various customer-centric and business-centric applications to gain a competitive advantage over their competitors.
Market segmented on the basis of region (North America, Europe, Asia-Pacific and Rest of the world): North America held the largest share majorly due to the presence of various developed economies, such as Canada and the US, and enterprises’ focus on innovating the existing solutions.
North America is a hub for developing technologies and the home for technology startups. The reasons attributed due to the high concentration of application hosting providers in this region. Furthermore, the adoption of cloud hosting among companies in North America is high. Startups and large enterprises are preferably hosting their applications on the cloud.
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APAC is expected to grow at the fastest growth rate during the forecast period, due to the presence of large number of colocation data centers that are supporting the growth of the application hosting market in this region.
The major market players of the global Application Hosting market are:
AWS, IBM, Rackspace, Google, Liquid Web, Microsoft, Sungard AS, DXC, Apprenda, Navisite and others.
These companies using various strategies such as merger & acquisition, collaboration, partnership and product launch. Whereas, merger & acquisition is the key strategy adopted by the companies in the market.
The factors contributing to the growth of the application hosting market include software-centered competitive advantage approach is gaining industry agnostic acceptance, application hosting facilitates focus on core business processes by providing business-specific it solutions and comprehensive hosting solutions with an array of complementing services over the core offering.
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