ISG Momentum® Strategic Perspectives - Growing with the Cloud
The demand for increased flexibility and agility is propelling enterprises to look beyond traditional infrastructure and move toward a more flexible cloud-based model. As-a-service spending accounted for more than 50 percent of all outsourcing spending in the third quarter of 2020 year-over-year, according to the Q3 2020 ISG Index™. The report found spending for infrastructure as a service (IaaS) was up nearly 20 percent in the first nine months of 2020 compared to 2019, which was the largest increase among all as-a-service categories. Led by strong demand for IaaS, overall as-a-service spending increased by 10.5 percent this year when compared to 2019.
While IaaS remains very popular, enterprise demand for other as-a-service models is also on the rise. For example, the enterprise preference for applications based on software-as-a-service (SaaS) is pushing traditional software vendors/providers to move their packaged applications to run in the cloud. Digital workplace services that offer mobile workplace solutions with a highly secure work-from-home environment are another example. Further, with lockdown measures leading to a dearth of on-site IT personnel support, enterprises are leveraging cloud capabilities to check, maintain, monitor and support their applications and data.
Security management companies have seen a sudden spike in inquiries and demand for endpoint security, identity and access management, intrusion detection systems, and intrusion prevention systems. To address these needs, large service providers and cloud-native niche startups have developed SaaS-based, lightweight platform solutions for securing the entire infrastructure, both on-premises and in the cloud. This has enabled security measures to be deployed easily and rapidly.
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