Cognitive Operations Market

[158 Pages Report] Cognitive operations market is projected to reach USD 21.67 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 24.4% during the forecast period (2018–2023). Major growth drivers of the market include the growing complexities in IT environments and an increasing focus on the adoption of cloud-based cognitive IT operations solutions across verticals.

The objective of the study is to define, describe, and forecast the global cognitive operations market by component (solutions and services), deployment mode (cloud and on-premises), application (IT operations analytics [ITOA], application performance management [APM], infrastructure management, network analytics, security analytics, and others), enteprise size (large enteprises and SMEs), vertical (BFSI, healthcare and life sciences, IT and telecom, retail and ecommerce, manufacturing, government, media and entertainment, and others), and region. Moreover, the report aims to provide detailed information about the major factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market.

The research methodology used to estimate and forecast the global cognitive operations market size began with the capturing of data on the key vendor revenues through secondary research, annual reports, Institute of Electrical and Electronics Engineers (IEEE), Factiva, Bloomberg, and press releases. Moreover, the vendor offerings were taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size from the revenues of the key market players. Post arrival at the overall market size, the total cognitive operations market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key individuals, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments.

The figure below depicts the break-up of the profiles of the primary participants:

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Major vendors in the global cognitive operations market include IBM (US), Splunk (US), CA Technologies (US), Micro Focus (UK), VMware (US), HCL Technologies (India), AppDynamics (US), BMC Software (US), New Relic (US), Appnomic  (India), CloudFabrix (US), Loom Systems (US), Dynatrace (US), Zenoss (US), Ymor (US), Devo (US), Logz.io (US),  ServiceNow (US), Corvil (Ireland), Interlink Software Services (UK), Correlata (Israel), ScienceLogic (US), Sumo Logic (US), RISC Networks (US), and Bay Dynamics (US).

Target Audience for Cognitive Operations Market

• Artificial Intelligence (AI), cognitive, and analytics solutions and services providers
• Value-added Resellers (VARs)
• Managed Service Providers (MSPs)
• Cloud services providers
• System integrators
• Training and education services providers
• Information Technology (IT) directors/consultants
• Small and Medium-sized Enterprises (SMEs)

The solutions segment is expected to account for a larger market size during the forecast period. The software tools segment is expected to hold a larger market size, as cognitive operations software tools help organizations to find solutions for various tasks of IT operations, such as monitoring and managing large and complex environments with less efforts. On the contrary, the services segment is expected to grow at a faster rate during the forecast period.

The cloud deployment mode is expected to grow at a higher CAGR during the forecast period, as the cloud provides multiple benefits, such as reduced operational costs, simple deployments, and higher scalability. The on-premises deployment mode, on the other hand, is expected hold a larger market size in cognitive operations market during forecast period, as data sensitive enterprises prefer on-premises deployment of cognitive operations solutions.

The large enterprises segment is expected to account for a larger market size forecast period, whereas the Small and Medium-sized Enterprises (SMEs) segment to register a higher CAGR during the forecast period. Cognitive operations solutions enable SMEs not only to get real-time data but also to predict future outcomes.

The security analytics application is projected to be the fastest growing application in the cognitive operations market, whereas the IT operations analytics (ITOA) application to have the largest market size during the forecast period. Security analytics helps enterprises to successfully detect, investigate, and correct security threats across all the IT operation processes. ITOA helps in unlocking trends for organizations connect performance issues and infrastructure changes to incident tickets.

Among the verticals, the Banking, Financial Services, and Insurance (BFSI) vertical is expected to hold the largest market size in the cognitive operations market. The IT and telecom vertical is expected to grow at the highest CAGR during the forecast period. The IT and telecom vertical uses cognitive operations solutions to get critical insights from the huge volumes of data generated from user networks. With the help of cognitive operations capabilities, the banking sector can analyze large volumes of data to enhance customer experience.

The report on the global cognitive operations market covers 4 major regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW). North America is expected to be the largest revenue generating region, due to the growing demand for cognitive operations solutions to optimize the IT operations processes. APAC, on the other hand, is expected to be the fastest growing region in the market during the forecast period.

Constantly changing IT operations environment, complex integration of cognitive operations capabilities with the existing systems, and lack of skills and expertise are major challenges for the market.

Major vendors in the global cognitive operations market include IBM (US), Splunk (US), CA Technologies (US), Micro Focus (UK), VMware (US), HCL Technologies (India), AppDynamics (US), BMC Software (US), New Relic (US), Appnomic (India), CloudFabrix (US), Loom Systems (US), Dynatrace (US), Zenoss (US), Ymor (US), Devo (US), Logz.io (US), ServiceNow (US), Corvil (Ireland), Interlink Software Services (UK), Correlata (Israel), ScienceLogic (US), Sumo Logic (US), RISC Networks (US), and Bay Dynamics (US).

Drivers : Cognitive Operations Market

Growing need to monitor the complex IT environment

In IT operations are becoming crucial across all industries, and with the advancement in technology and digitalization, IT operations are becoming more complex. The effective management of the same has become crucial to achieve competitive advantage. Therefore, business is primarily focusing on enhancing system performance and availability. This can be achieved by analyzing performance and activity of server, infrastructure as well as IT applications. By analyzing log and metrics data generated from IT systems, IT operational teams can analyze the performance and health of the IT systems. Here, cognitive operations solutions can play important role to help IT teams find issues as well as quickly solve incidents to understand root causes that are impacting the business.

Increasing focus toward adoption of cloud-based cognitive IT operations solutions

Organizations are shifting their core business applications to the cloud to leverage the benefits offered by the cloud. The cloud deployment option provides various benefits, such as scalability, reduced cost, and ease of deployment. Furthermore, organizations are migrating toward cloud, due to growing data storage requirements. In addition to that, cloud-based solutions can help organizations easily implement predictive analytics capabilities into various business applications. These benefits are expected to create the demand for cloud-based cognitive operations solutions. Moreover, with the growing complexity to manage the hybrid environment, along with the physical and virtual environment, IT operations teams are shifting their focus from their traditional monitoring suites to the cloud.

Restraints

Lack of skills and expertise

Most of the organizations face issues related to lack of expertise and analytical talent while developing, deploying, and managing AI-powered systems into IT operations. Organizations primarily face concerns related to lack of skilled employees and analytical talent. Machine learning algorithms are becoming crucial to analyze IT operations data. Building machine learning models is a complex thing and requires skills, expertise, and proper training. Moreover, integration of cognitive solutions into the existing system requires a large volume of data processing as well as skilled employees and expertise. There is limited skillset in the machine learning and artificial intelligence space, which may act as a challenge while implementing cognitive solutions in the IT environment. Therefore, lack of skills and expertise in cognitive technologies, including machine learning and artificial intelligence, can act as a restraining factor for organizations operating in the cognitive operations market space.

Opportunities

Growing need to deliver an enhanced customer experience

With the advent of the digital world, organizations are primarily focusing on delivering enhanced customer experiences. A poor customer experience may lead organizations to lose significant opportunities in the market. In addition to that, as the adoption of digital technologies is growing across various industries, IT operations and Devops managers are looking at cognitive solutions that can help them deliver a superior customer experience. Cognitive solutions can help IT operations and DevOps teams achieve this objective by providing a systematic way to detect problems and manage digital experiences across various channels.

Increasing need to analyze growing IT operations data

Nowadays, data across IT departments is growing at a rapid pace. Furthermore, digital transformation is also contributing to the generation of large volumes of data, including events data, log data, performance data, and configuration data. IT operations managers can use this data to enhance their operational efficiency and streamline business operations. IT analytics solutions coupled with cognitive capabilities can play a crucial role in solving various problems. For instance, analytics solutions can find data patterns, and cognitive capabilities such as machine learning can be applied on data patterns to generate insights. Therefore, machine learning algorithms can be useful to assess data and respond to this data in the IT operations environment, which would further help save time and money by automating and managing issues that occur in the IT operations environment.

Challenges

Constantly changing IT operations environment

IT operations management requires IT managers to keep a track of capacity, performance, and availability of the IT infrastructure. Small changes in the systems can majorly affect the performance of IT systems and the overall performance. Moreover, unexpected changes may disrupt the functioning of applications, which needs to be resolved quickly to prevent losses. Additionally, with the growth in adoption containers, virtualized technologies, and cloud, the IT operations environment is changing drastically. Apart from that, after shifting their legacy on-premises environment to the cloud, organizations are relying on on-premises data centers, public cloud resources, and private cloud deployments. This constantly changing IT operations environment may become a challenge for successfully implementing cognitive operations solutions.

Integration of cognitive operations capabilities with the existing systems

One of the challenges in the cognitive operations market is the integration of the cognitive technology with the existing IT infrastructure. The proper integration of cognitive solutions with the existing IT infrastructure is crucial to generate the desired output. Improper integration of cognitive capabilities into the IT infrastructure may damage the working mechanism of the IT systems. With the increasing complexity of the IT environment, the proper implementation of cognitive solutions into the IT infrastructure becomes crucial to realize the benefits offered by cognitive solutions in the IT operations environment. As systematic integration becomes crucial to avoid any further losses and system breakdowns, the proper integration of cognitive capabilities may act as a challenge in the global market.

Competitive Landscape

New Product Launches/Product Upgradations

Source: Press Releases

Partnerships and Collaborations

Source: Press Releases

Mergers and Acquisitions

Source: Press Releases

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Scope of the Report

The research report segments the cognitive operations into the following segments and subsegments:

By component

• Solutions
• Software Tools
• Platform
• Services
• Deployment and integration
• Support and maintenance
• Training and consulting

By deployment mode

• Cloud
• On-premises

Cognitive Operations Market By application

• IT Operations Analytics
• Application Performance Management
• Infrastructure Management 
• Network Analytics
• Security analytics
• Others (Log and Event Management, Predictive Maintenance, Anomaly Detection, App Experience Analytics, and Root Cause Analytics)

By enterprise size

• Large Enterprises
• SMEs

By vertical

• BFSI
• Healthcare and Life Sciences
• BFSI
• IT and telecom
• Retail and eCommerce
• Manufacturing
• Government
• Media and Entertainment
• Others (Energy and Utilities, Transportation and Logistics, and Education)

By region

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World (RoW)

Available Customization

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix which gives a detailed comparison of the product portfolio of each company

Geographic Analysis

• Further breakdown of the APAC cognitive operations market.
• Further breakdown of the North American market
• Further breakdown of the European market
• Further breakdown of the RoW market

Company Information

• Detailed analysis and profiling of additional market players (Up to 5)

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