Investing.com — The IT Operations (ITOps) market, as soon as seen as a price heart confined to back-office capabilities, is experiencing a profound transformation pushed by synthetic intelligence and automation, in line with word by Raymond (NS:RYMD) James.
The agency estimates the sector will increase to $125 billion by 2028, rising at a compound annual fee of 13% from $80 billion in 2024.
Raymond James highlights the shift in ITOps’ position from back-office assist to a important enterprise driver, with platforms akin to ServiceNow (NYSE:NOW) gaining prominence amongst C-suite executives for streamlining operations and enabling differentiation. The elevated reliance on AI to automate redundant duties and optimize workflows has positioned the sector for sturdy double-digit progress, attracting investor curiosity regardless of a difficult macroeconomic backdrop.
The report notes that valuation multiples for ITOps corporations have declined, now buying and selling according to broader expertise indices, such because the S&P 500 Know-how Choose Sector SPDR Fund (XLK). Nonetheless, Raymond James sees this as a horny entry level for buyers, emphasizing the potential for vital shareholder worth creation by way of 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 Evaluation (HPA), and Synthetic Intelligence for IT Operations (AIOps):
ITSM – Valued at over $7 billion, the ITSM market is increasing within the low- to mid-teens, pushed by the consolidation of spending into core platforms and the combination of AI capabilities. ServiceNow, with almost 50% market share, stays a frontrunner, adopted by rivals like Atlassian (NASDAQ:TEAM), leveraging its Jira ecosystem.
HPA – Estimated at $22 billion, this market helps the efficiency of IT infrastructure and purposes, with submarkets akin to Software Efficiency Monitoring (APM) and observability displaying excessive progress. Organizations’ shift to cloud-based methods and the criticality of real-time efficiency monitoring are key progress drivers.
AIOps – At $2 billion, the AIOps section is rising within the mid- to high-teens. By leveraging AI to investigate huge quantities of IT knowledge, this expertise enhances decision-making and expedites downside decision. Raymond James anticipates AIOps will more and more combine with ITSM platforms.
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