As companies who operated during the dot-com boom are aware, applications have been a bother. With chasing down vendors for licenses, updates, and software patches, many resorted to resources freely available on the Net.
But the proliferation of the Internet and access to high speeds thanks to evolution of communication networking technologies has culminated in application hosting.
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Rise of Cloud Computing
Cloud services have managed to disrupt the global market by allowing application service providers a chance to expand their offerings. The storage capacity, impressive data management and data retention skills, and flexibility it offers to enterprises has driven its adoption rate considerably.
Application hosting is a software-as-a-service (SaaS) solution offered by providers to run an application over the cloud without incurring additional expenses.
It provides similar functionality to installed software without installation costs or vendor licensing fees. The platform can host email management applications, database applications, web development applications, and content management applications while the onus of managing the Internet on the company.
The application hosting market is bound to touch a value of USD 82.17 billion by 2023, as per the analysis by Market Research Future (MRFR). This can be attributed to cloud services which allow a gamut of applications to be hosted with constant monitoring from remote areas.
Managed vs Managed Application Hosting
Managed hosting is a service model in which an application service provider leases out servers and other equipment to a single client.
It contains services and products which can ease the management of voluminous amounts of data. These services are accessed via a web user interface by the end-user, while the service provider is accountable for configuration of hardware and software, technical support, patches, and system monitoring and updates.
Managed application hosting, on the other hand, contains features akin to managed hosting but supported by technical support and administration.
Furthermore, it has the option to migrate data to private cloud with additional fees charged to the user’s account. Other services which can attract end-users include automated annual backup of data on a regular basis.
In addition, access to external resources and integration of reporting software can culminate in a graphical display of data which can help in pinpointing errors.
Mushrooming of Data Centers
Data centers have been cropping up in remote locations or feasible regions with sustainability in the core to cater to demand for application hosting providers.
Businesses looking to scale or operate in multiple countries need a flexible system architecture in place. Private cloud hosting services will play a major role in storing data and information of customers. With ecommerce stores flourishing due to heavy shopping patterns online, data centers will be monumental in minimizing infrastructure costs.
Small and Medium Enterprises
Small and medium enterprises have grown manifold thanks to access to lightning speed Internet services aided by optical fiber cables placed by telecommunication companies. But the growing client list and requirement is likely to trigger the need for data centers and hosting services. These companies will embrace cloud services to focus on their functional areas.
Mergers & Acquisitions
The application hosting market is characterized by mergers and acquisitions as it becomes more consolidated. In 2019, Lincoln Rackhouse managed to acquire three data centers of Bytegrid giving it a premier position in colocation and managed hosting services sector.
Rapid industrialization and digitization has resulted in a high demand for cloud services for management of data. Lax regulatory policies and tax reforms are factors which can play a major role in the market in the coming years.