The System Infrastructure Software market covers the type of software solutions that are designed to help manage and maintain the underlying infrastructure that supports an organization's applications and data. This includes a wide range of tools and technologies that help manage the physical and virtual infrastructure, including operating systems, middleware, virtualization, networking, storage, and security.
Products in the System Infrastructure Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.
Examples in the System Infrastructure Software market include operating systems such as Microsoft Windows Server, Red Hat Enterprise Linux, and Ubuntu Server; virtualization software such as VMware and Hyper-V; networking software such as Cisco IOS and Junos OS; and storage software such as EMC VMAX and NetApp.
The System Infrastructure Software market comprises revenue and revenue growth as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G).
Key players in this market include Microsoft, RedHat, and Cisco.
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Operating system software, such as Microsoft Windows, Linux Operating System, and Apple macOS
Storage management software, such as AWS Storage Gateway, Azure Archive Storage, and Cisco UCS Manager
IT management software, such as ManageEngine OpManager, NinjaOne, and Freshservice
Security software, such as CrowdStrike, Palo Alto Networks, and Proofpoint
Consumer and enterprise spend, such as Airbase, Spendesk, and Procurify
Application development and deployment software, such as Android Studio, Microsoft Visual Studio, and Google Cloud Platform
Data management software, such as AWS, SAP Master Data Governance, and SQL Server Integration Service
Infrastructure as a service (Iaas), such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
Custom applications, such as Sphinx Solutions, CHI Software, and Intellectsoft
The System Infrastructure Software market has been rapidly growing in recent years, driven by the increasing demand for cloud-based services and the need for efficient data management.
Customer preferences: Customers are increasingly opting for cloud-based infrastructure software solutions due to their flexibility, scalability, and cost-effectiveness. This has resulted in a shift away from traditional on-premises infrastructure software. Additionally, customers are looking for software that can provide automation and analytics capabilities to help manage their data more effectively.
Trends in the market: In the United States, the System Infrastructure Software market has been dominated by major players such as Microsoft, IBM, and Oracle. However, smaller companies are gaining traction by offering more specialized solutions and catering to niche markets. In Europe, the market is also growing, with the United Kingdom and Germany being the largest markets. The Asia-Pacific region is expected to experience the highest growth rate, driven by the increasing adoption of cloud-based solutions in countries such as China and India.
Local special circumstances: In China, the government's "Made in China 2025" initiative has led to a focus on developing domestic infrastructure software solutions, which has resulted in increased competition for foreign companies. In India, the market is fragmented, with a large number of small and medium-sized enterprises offering infrastructure software solutions.
Underlying macroeconomic factors: The increasing adoption of cloud-based infrastructure software solutions is being driven by the growth of the digital economy and the need for efficient data management. The COVID-19 pandemic has also accelerated the adoption of cloud-based solutions as companies have had to shift to remote work and require more flexible and scalable solutions. Additionally, the growth of big data and the Internet of Things (IoT) has resulted in an increasing need for infrastructure software solutions that can handle large amounts of data and provide real-time analytics.
The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).
Modeling approach / Market size:
The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.
We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.
The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.