Enterprises and government organizations across the world are moving from test environments to place more of their work-critical workloads and compute instances into the cloud. Further, owing to the rapidly increasing adoption of IoT, cloud, and Big Data analytics across multiple organizations as a major part of their digital transformation strategy, the burden on the data centers is also increasing.
New York, March 24, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Managed Services Market Size, Share - Growth, Trends and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05815078/?utm_source=GNW
This is leading to the growth of the market.
- The managed services, for cloud, IoT platforms, containers, DevOps, and Big Data, are expected to hold tremendous potentials for managed service providers during the forecast period. Additionally, according to Cisco, 46% of network devices are likely to be machine-to-machine or IoT, by 2020, which are vulnerable to attacks.
- The global market for managed services is expected to witness a high demand for managed mobility and information services. There has been a tremendous shift in focus towards the managed services and their applications for both the short and long-term strategic decisions. It is estimated that successful deployment of managed services will help in reducing IT cost by 25-45% and will also increase the operational efficiency by 45-65%.
- Additionally, over the past few years, organizations have been actively amending their strategies to get the maximum benefit out of managed services. For instance, in the past years it has been observed that organizations are increasingly focusing on the reduction of cost by cutting down the number of suppliers and reducing the payment size. As a result, the demand for bundled services has gained immense traction in the market over the discrete offerings.
- According to an IBM security analysis quoted in IT World Canada, misconfigured servers accounted for approximately 86% of the 8.5 billion records that were compromised last year on a global level. Although the number of misconfigured incidents decreased in 2019 as compared to 2018, the total number of records affected increased. Misconfigurations can occur across many paths, including the cloud storage, open internet-connected network area storage devices, and improperly secured sync backups. To mitigate these misconfigurations, enterprises across the world are adopting managed service providers.
Key Market Trends
Increasing Shift to Hybrid IT is Expected to Drive the Market
- The adoption of IoT solutions, which connects hardware devices, embedded software, communication services, and managed services, and offers smart communication environments, smart transportation, such as smart homes, smart healthcare is expected to drive the market during the forecast period.
- Moreover, according to a recent Microsoft report “IoT signals” (published in July 2019), which features a survey of more than 3,000 IoT decision-makers in enterprise organizations, suggests that IoT adoption is rising rapidly and is leading to considerable business transformation.
- According to the report, 85% of the surveyed enterprises are actively adopting IoT solutions, while over 88% of the see IoT as critical to business success. Also, businesses adopting IoT believe to witness a 30% ROI on their IoT projects. Additionally, critical technology factors, driving IoT success in the next two years, are likely to be AI (Artificial Intelligence), edge computing, and 5G, followed by digital twins and blockchain.
- Additionally, enterprise mobility trend has emerged over the years. The companies today are primarily focusing on business strategies and core competencies, fueling the utilization and adoption of bring-your-own-device (BYOD). This increases the requirement of streamlined mobility services, which is likely to boost the demand for managing these mobile devices.
Asia-Pacific is Expected to be the Fastest Growing Market
- The digital transformation has become a top priority in China and it is moving at a rapid pace, as a greater number of companies are implementing formal strategies to support their efforts. China Telecom has mentioned that in 2013, cloud computing was only worth 3% of China’s enterprise IT market, and it is expected to grow up to 20% by 2020.
- The managed service providers in China are focusing on reducing security risks and optimize operations for the end users by keeping up with the latest technologies. The managed services market is majorly offered by the telecommunication companies in the country.
- Further, The Indian IT and IT-enabled services industry is the dominating source for most of the countries worldwide, which accounted for over 55% of the global services sourcing businesses in 2018 (IBEF). Indian IT and IT-enabled services companies have set up over 1,000 global delivery centers in about 80 countries across the world. Also, the business process management sectors account for 32% of the revenue in the Indian IT market.
- Additionally, banking sector in India is experiencing a colossal change due to the rapid evolution of technology in their vertical, which led to the adoption of cloud computing services by these organizations for addressing their issues. Further, the managed storage providers in the country are investing in developing an integrated cloud storage platform dedicated to the BFSI sector. For instance, in August 2018, ESDS introduced Banking Community Cloud, which offers all the cloud-based services to the organizations in the sector for addressing issues, like security, compliance, and service norms
The managed services market is consolidated, and it is dominated by major players. Some of the major players in the market are Cisco Systems Inc.?, IBM Corporation, Microsoft Corporation, Fujitsu Ltd, and Wipro Ltd, among others.
- January 2020 - HP announced a new range of cloud services for retailers and hospitality operators. HP “Engage Console” and HP “Engage Catalog” are developed to deliver easy and flexible retail solutions, to help these industries to increase productivity by reducing manual IT work.
- March 2020 - Infosys and IBM announced a partnership to help business enterprises accelerate their digital transformation activity using the IBM cloud services. This collaboration may help the enterprises transition, modernize, and transform their workflows and applications with IBM cloud services. This may help the enterprises that are operating in highly regulated industries, like BFSI, healthcare, and other industries.
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