Cloud-based Data Management Services Market

[255 Pages Report] The cloud-based data management services market is expected to grow from USD 40.2 billion in 2023 to USD 141.7 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 28.7% during the forecast period. Cloud-based data management services are of significant importance as these services offer crucial benefits to enterprises, such as rapid deployments and optimized capital expenditures and maintenance costs. It also makes an enterprise more dynamic, which is the need of the hour in changing business requirements. Along with these benefits, some restraints, such as data security, migration, backup, and recovery, can impact market growth if not managed properly. Cloud-based data management services broadly focus on integration, security, backup, and quality services. The integration services cater to enterprise needs such as data conversion, migration, integration, Master Data Management (MDM), data synchronization, data virtualization, data exchange, and implementation of Service Oriented Architectures (SOAs). Data security & backup services focus on areas such as data protection, data archiving, data governance, and data recovery. Quality-as-a-service includes data cleansing, scrubbing, updating, remediation, standardization, and de-duplication.

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Recession Impact on the Cloud-based Data Management Services Market

The global cloud-based data management services market has faced a multifaceted impact due to the convergence of economic downturns, geopolitical tensions, a global pandemic, inflation, and rising interest rates. The recession prompted businesses to reevaluate their spending, affecting IT budgets and investments in cloud-based data management services. The Russia-Ukraine war introduced geopolitical uncertainties, raising concerns about data security and compliance, particularly with cross-border data transfers. The COVID-19 pandemic initially accelerated the adoption of cloud services as organizations adapted to remote work requirements, but it also led to economic uncertainties impacting businesses’ financial capabilities. Inflation and rising interest rates have added additional pressures, increasing business operational costs and potentially influencing strategic investment decisions. These factors collectively have resulted in a more cautious approach to technology spending, impacting the growth trajectory of the global cloud-based data management services market. Companies in this sector must navigate these challenges strategically, emphasizing flexibility and innovation to address evolving market dynamics and changing customer needs.

Cloud-based Data Management Services Market Dynamics

Driver:  Simplified data backup and disaster recovery

Cloud-based data management services, simplified data back-up, and disaster recovery capabilities are driving their widespread adoption. Businesses increasingly rely on these services due to their convenience and efficiency in safeguarding critical data. With the cloud, companies can quickly and automatically back up their data, eliminating the need for complex, manual backup processes and expensive on-premises infrastructure. Moreover, the cloud’s scalability allows for seamless storage expansion, ensuring that data back-ups can grow with the organization’s needs. Additionally, the robust disaster recovery features in the cloud enable swift data restoration during unforeseen disruptions or emergencies, reducing downtime and ensuring business continuity. This simplicity, coupled with the reliability and cost-effectiveness of cloud-based data back-up and disaster recovery, is a key driver in the migration towards these services, empowering organizations to securely protect their data assets while focusing on their core business objectives.

Restraint: Lack of training and skill gap

The absence of adequate training and skill gaps can significantly impact the adoption of cloud-based data management services. Cloud technologies, while powerful, can be complex to navigate, and organizations often struggle to harness their full potential without a skilled workforce. Insufficient training and knowledge gaps can lead to operational challenges, from misconfigurations and security vulnerabilities to inefficient resource allocation. Furthermore, it can hinder the adoption rate, as employees may hesitate to embrace new technologies they are uncomfortable using. This can result in slower migration to cloud-based data management services and may compromise an organization’s ability to capitalize on the cloud's scalability, cost-efficiency, and advanced analytics capabilities. Addressing these skill gaps through training and upskilling initiatives is crucial to empower employees and ensure that organizations can successfully adopt and optimize cloud-based data management services, realizing their full benefits.

Opportunity: Demand for scalability, accessibility, and flexibility among businesses

By utilizing the cloud for master data management, businesses can achieve a consolidated and reliable view of their master data, including customer information, product details, financial records, and more. This centralized management, facilitated by cloud-based master data management solutions, allows for a single source of truth, ensuring data consistency and accuracy across various departments and systems. The cloud’s scalability and accessibility enable real-time updates and wider data availability, supporting efficient collaboration and decision-making. Additionally, cloud-based master data management systems provide the flexibility to integrate diverse data sources and formats, enabling businesses to adapt and evolve with changing requirements while maintaining data quality and integrity. The cloud-based master data management approach streamlines data governance. It enhances operational efficiency, enabling businesses to harness accurate and reliable data to fuel strategic insights and drive better decision-making processes.

Challenge: The higher expense of storing data on the cloud

The higher expense of storing data in the cloud poses a notable challenge in the widespread adoption of cloud-based data management services. While the cloud offers scalability and flexibility, the cost structure for storing, managing, and accessing data can become a barrier for many organizations. As data volumes grow, so do the expenses associated with storing and managing this data. Unforeseen costs, such as charges for data retrieval, network egress, or maintaining high availability, can lead to significant budgetary concerns. This unpredictability in pricing and the potential for escalating costs make it challenging for businesses to accurately forecast and manage their expenses effectively, potentially hindering the seamless adoption and utilization of cloud-based data management services. Addressing these cost-related challenges necessitates a meticulous strategy focused on optimizing data storage, leveraging efficient data archiving techniques, and constantly monitoring and adjusting usage to align with budgetary constraints.

Cloud-based Data Management Services Market Ecosystem

Based on the service model, the SaaS segment holds a larger market size during the forecast period.

The cloud-based data management services market has experienced a remarkable surge in Software-as-a-Service (SaaS) adoption, driven by its compelling advantages to businesses. A significant portion of this growth can be attributed to the increased adoption of SaaS in data management services. For instance, leading companies such as Salesforce and Microsoft Azure have witnessed substantial upticks in their cloud-based data management solutions. Salesforce’s SaaS-based Customer Relationship Management (CRM) platform reported a 26% year-over-year revenue increase in the last fiscal quarter, showcasing the robust demand for cloud-driven data solutions. Microsoft Azure’s SaaS offerings for data analytics and storage also experienced a 36% revenue growth in the same period.

Based on  Vertical, the healthcare & life sciences segment is expected to grow at the highest CAGR during the forecast period.

Healthcare companies utilize cloud platforms to securely store, access, and manage patient data, medical histories, treatment plans, and other critical health information. Cloud-based EHR systems offer several advantages, including centralized storage, real-time accessibility, and seamless collaboration among healthcare providers. The cloud facilitates the secure sharing of patient information across different departments and healthcare facilities, promoting coordinated care and improving overall patient outcomes. Further, Cloud-based clinical decision support systems (CDSS) offer real-time insights to healthcare professionals by processing patient information, identifying patterns, and providing evidence-based recommendations at the point of care. This approach not only enhances diagnostic accuracy but also supports personalized treatment plans. The scalability of cloud services enables healthcare organizations to efficiently manage the growing volume of clinical data, ensuring that CDSS can continuously evolve and adapt to incorporate the latest medical research and best practices.

Based on Region, North America holds the largest market share during the forecast period.

North America, particularly the United States and Canada, remained economic powerhouses with robust GDP growth. The region benefited from diverse industries, including technology, finance, healthcare, and manufacturing. ICT played a crucial role in North America’s economic development. The region boasted advanced telecommunications infrastructure, high internet penetration rates, and widespread access to digital technologies. Investments in 5G technology were underway to enhance connectivity and support the growing demand for data-intensive applications. The adoption of cloud services is exemplified by the fact that, as of 2022, over 80% of North American enterprises have already embraced cloud computing in some form, as reported by the Cloud Security Alliance. Notably, companies are increasingly turning to cloud-based data management services to leverage the scalability and cost-effectiveness offered by cloud platforms. For instance, industry giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have witnessed a substantial uptick in demand for their cloud-based data solutions, with AWS reporting a revenue of $13.5 billion in the first quarter of 2023, marking a 32% year-over-year increase. This is likely to boost the adoption of cloud-based data management services in the region.

Key Market Players

The cloud-based data management services market is dominated by a few globally established players such as IBM (US), Fujitsu (Japan), Cisco (US), Dell Technologies (US), and HPE (US), among others, are the key vendors that secured video processing platform contracts in last few years. These vendors can bring global processes and execution expertise to the table; the local players only have local expertise. Driven by increased disposable incomes, easy access to knowledge, and fast adoption of technological products, buyers are more willing to experiment/test new things in the cloud-based data management services market.

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Scope of the Report

This research report categorizes the cloud-based data management services market to forecast revenue and analyze trends in each of the following submarkets:

Based on Service Type:

• Integration Services
• Data Security & Backup Services
• Quality-as-a-Service

Based on the Service Model:

• Software-as-a-Service
• Platform-as-a-Service
• Infrastructure-as-a-Service

Based on the deployment mode:

• Public Cloud
• Private Cloud

Based on verticals:

• BFSI
• IT & Telecom
• Retail & Consumer Goods
• Government & Public Sector
• Energy & Utilities
• Manufacturing
• Healthcare & Life Sciences
• Education
• Media & Entertainment
• Research & Consulting Services
• Other Verticals

Based on Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In September 2023, IBM enhanced its IBM Cloud Security and Compliance Center, a collection of advanced cloud security and compliance solutions, to enable enterprises to effectively manage risks and safeguard data across their hybrid and multi-cloud environments and workloads.
• In June 2023, NetApp announced enhancements to its BlueXP offering, which included streamlined backup and recovery processes, expanded data protection across various environments, and compatibility with highly secure settings such as government facilities. These updates ensured consistent operations, delivering a uniform experience across all applications regardless of the deployment environment.
• In November 2022, Dell Technologies announced an enhancement to its Dell PowerProtect Manager, a data protection solution that included Dell PowerProtect Data Manager Appliance, simplifying the data back-up and recovery process. It offered software-defined architecture, highly secured access, and a consistent user experience.
• In September 2022, Fujitsu strengthened its security services capabilities by acquiring InPhySec, a New Zealand-based cyber security firm.
• In June 2022, HPE introduced enhancements and new cloud services for HPE GreenLake. HPE launched eight new HPE GreenLake cloud services, giving customers more choice, control, and predictability for their enterprise cloud delivery.

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