Cloud Managed Services Market Report Will Help To Address Cost Management Challenges

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.

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. 

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

Service Type Insights

The mobility services segment accounted for the largest revenue share of 37.9% in 2022. Increased trends such as Bring Your Own Devices (BYOD) and mobile workforce will compel enterprises to implement services to manage devices and data. Increasing the adoption of portable and mobile devices in enterprises will further drive the growth of this segment.

Deployment Insights

The private segment accounted for the largest revenue share of around 86.4% in 2022. The private cloud offers several benefits to enterprises, such as increased data security and access control. This model further provides enterprises with benefits such as cost efficiency and reliability. However, the costs associated with the private cloud model are high.

End-user Insights

The large enterprise segment held the largest revenue share of 80.6% in 2022. Large enterprises, typically characterized by their extensive operations and complex IT infrastructure, have increasingly embraced cloud-managed services to drive operational efficiency, enhance scalability, and optimize their IT investments.

Verticals Insights

The telecom & ITes segment held the largest revenue share of 19.1% in 2022. The rapid digital transformation in the IT and telecommunication industry is fueling the industry’s growth. As organizations within this sector strive to modernize their infrastructure, optimize operations, and enhance service delivery, cloud solutions offer scalability, flexibility, and cost-efficiency.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 31.9% in 2022, owing to the presence of technology giants such as IBM, Google, Cisco Systems, and Verizon Communications. Initiatives by the federal government are increasing the adoption of cloud managed services. In Europe, several governments are working with various organizations and other countries to increase cloud adoption. Government initiatives such as the UK government's G-Cloud framework enable the government to utilize cloud managed services.

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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.