Cloud Managed Services Market Is Enhancing Business Efficiency Through Cloud Solutions

Cloud Managed Services Industry Overview

The global cloud managed services market size was valued at USD 102.19 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2023 to 2030. The growing emphasis on mobility and the requirement to focus on core business functions will drive market growth. Also, increasing demand for scalability and reliability will further elevate the demand for the services, enabling enterprises to scale up and down their operations by offering custom-made offerings to the available services. Enterprises are more concerned with IT cost reduction, which will fuel the demand in the future. Services offered on the pay-as-you-go model, where enterprises are charged for using resources, will enable enterprises to save on costs and provide flexibility.

Gather more insights about the market drivers, restrains and growth of the Cloud Managed Services Market

Cloud-managed services have several other benefits, such as enhanced IT functionality and customized IT services. The availability of robust infrastructure will remain a key concern for service providers as uninterrupted internet connectivity is required for service delivery. Simultaneous access from multiple users to the cloud might result in network congestion which can hamper the internet speed and lead to downtime. Massive loads from multiple client access on the server might result in a power failure, temporarily disrupting business operations.

Poor infrastructure and connectivity in developing regional markets such as India, Mexico, and MEA will remain the biggest challenge for the market to grow. Also, data privacy and data security over the cloud will restrain the market growth. Additionally, cost-sensitive enterprises may refrain from investing in these services owing to the initial high installation and maintenance cost.

Vendor lock-in is another primary concern for the service providers. Signing new contracts might include substantial charges along with application reconfiguration. In such cases, platform compatibility can be another concern, as applications developed on one platform might only be supported on one platform.

The COVID-19 pandemic had a positive impact on the cloud managed services market. The outbreak and subsequent restrictions imposed globally have accelerated businesses' digital transformation initiatives across various industries. It increased reliance on cloud-based solutions and services, driving demand for cloud managed services due to the shift towards remote work and the need for secure and scalable cloud infrastructure to support remote operations. As organizations transitioned their workforce to remote environments, there was a surge in demand for cloud managed services that provide robust connectivity, data storage, and collaboration tools.

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Key Companies profiled:

• IBM Corporation

• Cisco Systems, Inc.

• Telefonaktiebolaget LM Ericsson

• Verizon

• Accenture

• NTT DATA Corporation

• Huawei Technologies Co., Ltd.

• Fujitsu

• CHINA HUAXIN

• CenturyLink

• Trianz

Recent Developments

• In June 2023, Samsung Electronics and NAVER Cloud collaborated to launch a 5G network for Hoban Construction. This innovative network is the first in the Korean construction sector, empowering companies to integrate diverse 5G applications to enhance efficiency and safety at construction sites.

• In May 2023, Serviceaide, Inc., a US-based of IT and service management solutions provider, unveiled its AI-powered solutions and the AI-Everywhere Luma Virtual Agent. Luma 3.0, incorporating Generative AI, introduced a significant advancement in productivity, efficiency, cost reduction, and business process innovation. This enhancement aims to improve all service management functions. With Luma 3.0, users and staff enjoy highly interactive experiences that effectively address their needs, providing relevant information without manual searching.

• In April 2023, Sinch, a computer software company, joined forces with Synoptek, an IT service provider and Microsoft Gold partner. This strategic partnership enables Sinch to provide professional and managed Microsoft Teams Phone System services seamlessly integrated with Operator Connect or Direct Routing. The collaboration enhances the capabilities and offerings of both companies, ensuring efficient and effective solutions for their customers.

• In April 2023, VMware, Inc., a cloud computing company, launched VMware Cross-Cloud managed services. These comprehensive offerings benefit partners and customers, empowering skilled partners to expand their managed services practices. The launch of VMware Cross-Cloud managed services facilitates growth, profitability, and recurring revenue for providers, while also addressing the challenge of talent and skills gaps in multi-cloud environments. It aims to deliver faster time to value and bridge the IT expertise divide for customers.

• In June 2022, Hewlett Packard Enterprise launched platform improvements and innovative cloud services for HPE GreenLake. This solution aims to support organizations in modernizing their applications and data by providing a private cloud experience that is automated, flexible, scalable, and suitable for enterprise use.