Cloud Managed Services Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Service Type (Cloud Enablement, Cloud Migration, Management And Optimisation, Security And Compliance), By Enterprise Size (Small, Medium, Large), By End User Industry (BFSI, Healthcare, Education, Government, Communication And Technology, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI061610323 Pages: 130

The cloud-managed services market is projected to witness a CAGR of 10.78% during the forecast period to grow from US$99.246 billion in 2020 to US$203.266 billion in 2027.

Introduction

Cloud-managed services are expert services that expand IT infrastructure and in-house functionality and are managed in collaboration with third-party managed providers via cloud platforms. Managed network operations, managed security operations, managed applications, and mobility are all included in these services. Cloud-managed services also allow businesses to expand their capabilities and replace procedures and tasks that have high recurring expenses. Apart from that, these services assist firms in reducing recurrent IT costs, automating business operations, and transforming IT systems, as well as achieving their organisational goals.

The market’s growth rate will be driven by the increased emphasis on mobility combined with the demand to focus on key business tasks. Increased demand for performance and scalability will also boost service demand, as it will allow businesses to scale up and down existing operations by providing specially designed products to supplement the existing options.

Companies are much more focused on lowering IT expenses, which will fuel future demand. Pay-as-you-go services, in which businesses are charged based on how much time they spend using resources, allow businesses to save money and have more flexibility.

Market Trends in Cloud Managed Services

Cloud-managed services are expert services that expand IT infrastructures and in-house functionality and are managed in collaboration with third-party governed providers via cloud platforms. Automated security agencies, network management processes, regulated applications, and flexibility are all included in these services. Cloud-managed services also allow businesses to expand their capabilities and replace procedures and tasks that have high recurring expenses. Apart from that, these services assist firms in reducing recurrent IT costs, automating business operations, and transforming IT systems, as well as achieving their organisational goals.

Growth factors for the Cloud Managed Services Market

  • Concentrate on the Business

The market’s growth rate will be driven by the increased emphasis on mobility combined with the demand to concentrate on key business tasks. Increased demand for performance and reliability will also boost service demand, as it will allow businesses to move data between their operations by providing custom-made solutions to the services available. Companies are more focused on lowering IT expenses, which will fuel future demand. Pay-as-you-go services, in which businesses are charged based on how much time they spend using resources, allow businesses to save money and have more flexibility.

  • Enhanced IT services

Additional advantages of cloud-managed services include improved IT functionality and customised IT services. Because consistent internet access is necessary for service delivery, service providers will continue to be concerned about infrastructure availability. Multiple users accessing the cloud at the same time might cause network congestion, which can slow down the internet and cause downtime. Various distributed connectivity affecting this server may cause a power outage, causing business activities to be momentarily disrupted.

  • Proper maintenance

A business owner has little or no time to consider the IT infrastructure and its capabilities. IT system maintenance, on the other hand, is critical for business continuity. This necessitates Managed Service Providers (MSPs), who can proactively resolve any IT system difficulties. Most MSPs provide round-the-clock monitoring, which draws consumers in. Security solutions keep an eye on IT systems. The security solutions are activated for any potential threats or disruptions. Bugs and difficulties are frequently identified and resolved until they become a major business concern. This allows business owners to concentrate on their primary competencies rather than worrying about IT infrastructure and maintenance.

  • Using Anything-as-a-Service.

Anything-as-a-Service is referred to as XaaS. Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and Infrastructure-as-a-Service (IaaS) are the three pillars of cloud computing, and they offer a wide range of services. As end-users realise the benefits of XaaS, it is increasing at a faster rate than cloud computing. Organizations are even adopting technologies like network-as-a-service and IoT-as-a-service as managed services. MSPs can readily deliver these because they have the necessary infrastructure and knowledge. Pay-per-use services can be implemented in essential business processes by organizations. As a result, they can make the most of their IT budgets. The major benefit is the shift from capital to operational expenditures, resulting in a lower total cost of ownership.

  • Restriction in the Cloud Managed Services Market Privacy and Data Security

Cloud managed services entail the outsourcing of various third parties' skills, which might raise privacy and safety concerns. Mobility, networks, web applications, the cloud, endpoints, databases,  and virtualization infrastructures are all included. Any cloud MSP can easily expose sensitive business information with this. The market's largest problem will continue to be poor infrastructure and connectivity in expanding regional markets like India, Mexico, and the Middle East and North Africa.

  • Managing accounts and invoices

Understanding and analysing cloud invoicing can be tough. The billing system is almost completely unclear. Multi-cloud services bring together many infrastructures and applications under one roof. If not properly managed, consolidating, maintaining, and monitoring the usage of statistics for invoicing can be a significant difficulty. The invoice from the primary cloud providers frequently does not match the billing from MSPs, which annoys consumers and damages the relationship. 

  • Market Segmentation of Cloud Managed Services: Service Types

Based on the service type, the market is divided into Cloud Enablement, Cloud Migration, Management and Optimisation and Security and Compliance. The market is dominated by management and optimisation, which are the market leaders. Economic benefits, future-proofed technology, tailored and integrated service, solid infrastructure, predictable and recurrent monthly charges, centralised services and applications, and availability across all service levels are some of the advantages of managed and optimization business services. As cloud use grows, businesses are increasingly relying on SaaS apps like business software suites, sales networks, and even Google suites as a centralised platform. As businesses become more aware of the cloud's intrinsic benefits, such as cost savings as mobility, they are turning to it for data security.

  • Industry End-User

The market is divided into government, telecom and IT, BFSI, retail, healthcare, energy, manufacturing, and others based on end-user industry. During the projection period, the BFSI sector, which was a pioneer in the adoption of computer and telecommunication technologies to reduce huge, spatially distributed repositories and databases, is likely to have a significant proportion of the cloud-managed services market. By evaluating transactional data to assess risks based on market activity, scoring consumers, and future clients, big data solutions enable organisations to make educated decisions, allowing them to make better decisions. Banks like Morgan Stanley, BNY Mellon, Bank of America, PNC, and Credit Suisse, are already developing big data strategies in banking, which will help cloud-managed services grow even faster.

  • By Enterprise

The businesses are classified into small, medium, and large based on their size. During the projected period, the big enterprise segment will dominate the cloud-managed services market.. Large businesses are defined as companies with far more than 1,000 employees. Since the previous few years, managed services have primarily been given for broadband connections, security services, IP communications, VPNs, data centres, security, and mobility, which have been popular among smaller businesses. SMEs can also focus on their operational processes instead of worrying about IT costs when they choose managed services.

  • By Geography

The increased demand for cloud-managed services in the Asia Pacific (APAC) is predicted to expand at the fastest CAGR throughout the projection period. It allows businesses to boost revenue by reducing costs and enhancing staff efficiency. During the projection period, the APAC region is expected to see substantial expansion. Due to the increased acceptance of cloud-managed services by small and medium-sized organisations, which is likely to drive market expansion, Asia Pacific is anticipated to witness the fastest region over the forecast period. According to the Organization for Economic Cooperation and Development (OECD), SMEs employ more than 95 percent of the workforce. Increasing investments by major firms like IBM and Google are boosting cloud usage and, as a result, the market for cloud-managed services.

Impact of Covid-19 on the Cloud Managed Services Market:

The consumption of cloud, AI, and big data has surged as a result of the COVID-19 epidemic. Many companies have enacted laws and legislation that govern remote work. It has resulted in a spike in demand for cloud-based solutions such as SaaS-based collaborations. Cloud computing is used by many businesses.  Netflix, for example, employs cloud services to run its video-streaming services, giving customers a consistent product experience. The existence of a large number of firms in the industry, such as Amazon, Nordcloud, IBM, and Accenture, will help to boost the market's economic expansion.

Competitive Insights

The market players are enhancing the market by offering tough competition with competitors. To expand their market share, these companies are employing a variety of techniques. Among the most common methods are partnerships with other competitors, mergers, and increasing investments. Existing players are also using acquisitions and mergers and innovation development as effective approaches. Some major market players are Cisco, IBM, which has acquired Ericsson, and NTT Data Corporation. For instance, IBM acquired the Hybrid Cloud Consulting Business in Australia in October 2021. SXiQ's delivery experts have extensive experience with multi-cloud platforms.

Cloud Managed Services Market Scope:

Report Metric Details
 Market size value in 2020  US$99.246 billion
 Market size value in 2027  US$203.266 billion
 Growth Rate  CAGR of 10.78% from 2020 to 2027
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Service Type, Enterprise Size, End-User Industry, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Cisco, IBM, Ericsson, NTT Data Corporation, Accenture, Huawei Technologies, ALE International, HP, Fujitsu, NEC Corporation
 Customization scope  Free report customization with purchase

 

Segmentation               

  • By Service Type
    • Cloud Enablement
    • Cloud Migration
    • Management and Optimisation
    • Security and Compliance
  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By End-User Industry
    • BFSI
    • Healthcare
    • Education
    • Government
    • Communication and Technology
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    •  South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • Uk
      • Italy
      • Others
    • Middle East and Africa
      • UAE
      • Saudi Arabia
      • Israel
      • Others
    • Asia-Pacific
      • China
      • India
      • Japan
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of the global cloud-managed services market?
A1. Cloud Managed Services Market was valued at US$99.246 billion in 2020.  


Q2. What will be the cloud-managed services market size by 2027?
A2. The cloud-managed services market is projected to reach a market size of US$203.266 billion by 2027. 


Q3. What are the growth prospects for the cloud-managed services market?
A3. The global cloud-managed services market is projected to witness a CAGR of 10.78% over the forecast period. 


Q4. What factors are anticipated to drive the cloud-managed services market growth?
A4. The cloud-managed services market growth rate will be driven by the increased emphasis on mobility combined with the demand to focus on key business tasks.


Q5. Which region holds the largest market share in the cloud-managed services market?
A5. Asia Pacific (APAC) is predicted to hold the largest share in the cloud-managed services market.

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation


2. Research Methodology
2.1. Research Data
2.2. Assumptions


3. Executive Summary
3.1. Research Highlights


4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis


5. Cloud Managed Services Market By Service Type
5.1. Introduction
5.2. Cloud Enablement
5.3. Cloud Migration
5.4. Management and Optimisation
5.5. Security and Compliance


6. Cloud Managed Services Market By Enterprise Size
6.1. Introduction
6.2. Small
6.3. Medium
6.4. Large


7. Cloud Managed Services Market By End User Industry

7.1. BFSI
7.2. Healthcare
7.3. Education
7.4. Government
7.5. Communication and Technology
7.6. Others


8. Cloud Managed Services Market By Geography
8.1. Introduction
8.2.  North America
8.2.1. USA
8.2.2. Canada
8.2.3. Mexico
8.3.  South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4.  Europe
8.4.1. Germany
8.4.2. France
8.4.3. Uk
8.4.4. Italy
8.4.5. Others
8.5. Middle East and Africa
8.5.1. UAE
8.5.2. Saudi Arabia
8.5.3. Israel
8.5.4. Others
8.6.  Asia-Pacific
8.6.1. China
8.6.2. India
8.6.3. Japan
8.6.4. South Korea
8.6.5. Taiwan
8.6.6. Thailand
8.6.7. Indonesia
8.6.8. Others


9. Competitive Environment and Analysis
9.1.  Major Players and Strategy Analysis
9.2.  Emerging Players and Market Lucrativeness
9.3.  Mergers, Acquisitions, Agreements, and Collaborations
9.4.  Vendor Competitiveness Matrix


10.  Company Profiles
10.1. Cisco
10.2. IBM
10.3. Ericsson
10.4. NTT Data Corporation
10.5. Accenture 
10.6. Huawei Technologies 
10.7. ALE International
10.8. HP
10.9. Fujitsu 
10.10. NEC Corporation

Cisco

IBM

Ericsson

NTT Data Corporation

Accenture 

Huawei Technologies 

ALE International

HP

Fujitsu 

NEC Corporation

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