The global Cloud Managed Services market size is projected to reach US$ 54240 million by 2027, from US$ 30140 million in 2020, at a CAGR of 8.3% during 2021-2027. Key drivers of the cloud managed services market include the growing mobility toward cloud managed services for focusing on core business functionalities. The need for scalability, reliability and operational efficiency will drive adoption thereby propelling the growth of the cloud managed services market during the forecast period.
The demand for smooth IT operation and cost reduction through pay as you go model will boost the market demand in the coming years. However, data privacy issues and initial high installation costs will hamper the growth prospects of the industry during the review period.
Increasing focus on core business operations
Outsourcing IT infrastructure management enables businesses to make use of skilled resources from a third-party vendor to improve productivity and customer satisfaction. A cloud-managed service provider can oversee the day-to-day activities of the systems such as integration, migration, security, maintenance, etc. This frees up time and scarce resources are allocated efficiently as in-house teams can focus on more strategic business functions. These factors will boost the growth of the cloud-managed services market in the coming years.
Boosting the business’ revenue
Keeping the network infrastructure up to date is a challenging task. System failures, crashes, and outdated applications lead to end-user dissatisfaction. A dedicated service provider can optimize network operations, IT life cycle, security, and app management. The automation of business processes along with automatic upgrades ensures the servers are running smoothly thereby increasing uptime. This increases business growth and earnings. The ability to scale up rapidly will lead to mass adoption ultimately surging the growth of the cloud managed services market during the forecast period.
Custom-made offerings and billing models are provided by cloud-managed service vendors to suit the budgetary needs of individual customers. The pay-as-you-go model allows for paying as per your usage. They cut down the costs related to inefficient workflows while business owners can easily tweak their IT spending at regular intervals through the automated monitoring process. This ensures peace of mind and workload reduction. The benefit of an uninterrupted and seamless IT experience will push companies to leverage the strengths of the service vendor thereby driving the demand for the cloud-managed services market in the upcoming years.
Confidentiality and security problems
Public cloud systems work on multi-tenancy models. This means that a particular service provider will handle the cloud infrastructure of multiple clients in one place. The system might get affected due to the migration of another customer’s data posing serious privacy issues. Moreover, the billing patterns and costs may be reduced but initial investments according to a business’ cloud needs may be higher discouraging small business owners from investing in it. This in turn will hinder the demand for the cloud-managed services market during the forecast period.
Based on type, the network segment will dominate in the cloud-managed services market share owing to largescale adoption for network administration, management, and optimization.
Based on application, the private segment is expected to offer lucrative opportunities for growth in the cloud managed services market share owing to benefits such as cost reduction, stability, and increased data security.
Based on region, North America is expected to provide the highest growth in the cloud managed services market share due to rapid adoption by businesses to leverage IT infrastructure management.
The report lists the major players in the regions and their respective market share on the basis of global revenue. It also explains their strategic moves in the past few years, investments in product innovation, and changes in leadership to stay ahead in the competition. This will give the reader an edge over others as a well-informed decision can be made looking at the holistic picture of the market.
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