Investing.com — The IT operations (ITOps) market, as soon as thought of a price heart confined to back-office features, is present process a profound transformation pushed by synthetic intelligence and automation, based on a notice from Raymonde (NS:) Jacques.
The corporate estimates the business will attain $125 billion by 2028, representing 13% compound annual progress from $80 billion in 2024.
Raymond James highlights the evolving function of ITOps from back-office assist to a essential enterprise enabler, with platforms similar to ServiceNow (NYSE:) gaining significance amongst executives to streamline operations and allow differentiation . The elevated use of AI to automate redundant duties and optimize workflows has positioned the sector for sustainable double-digit progress, attracting investor curiosity regardless of a difficult macroeconomic backdrop.
The report notes that valuation multiples of ITOps firms have declined, now buying and selling in step with broader know-how indices, such because the Know-how Choose Sector SPDR Fund (XLK). Nonetheless, Raymond James sees it as a horny entry level for buyers, highlighting the potential to create important shareholder worth by a cycle of progress, profitability and reinvestment.
The ITOps ecosystem encompasses a number of submarkets, together with IT Service Administration (ITSM), Well being Efficiency and Analytics (HPA), and Synthetic Intelligence for IT Operations (AIOps):
ITSM – Valued at over $7 billion, the ITSM market is rising within the vary of 15-15%, pushed by consolidation of spending in core platforms and integration of AI capabilities . ServiceNow, with almost 50% market share, stays the chief, adopted by rivals like Atlassian (NASDAQ:), leveraging its Jira ecosystem.
HPA- Estimated to be price $22 billion, this market helps the efficiency of IT infrastructure and functions, with submarkets similar to utility efficiency monitoring (APM) and observability displaying robust progress. The transition of organizations to cloud-based programs and the significance of real-time efficiency monitoring are key progress drivers.
AIOps – At $2 billion, the AIOps phase is rising within the mid to excessive teenagers. By leveraging AI to investigate giant quantities of pc knowledge, this know-how improves decision-making and accelerates downside decision. Raymond James predicts that AIOps will more and more combine with ITSM platforms.
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