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Cloud Managed Services Market

Cloud Managed Services Market Forecasts to 2028 – Global Analysis By Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs)), Deployment (On-Premise, Private Cloud, Public Cloud) and By Geography

4.9 (65 reviews)
Published: January 2022 ID: SMRC21325
4.9 (65 reviews)
Published: January 2022 ID: SMRC21325

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Cloud Managed Services Market is accounted for $87.64 billion in 2021 and is expected to reach $194.97 billion by 2028 growing at a CAGR of 12.1% during the forecast period. Cloud managed services provide skilled services that enlarge IT infrastructure and in-house functionalities to be managed in association with third-party managed providers through cloud platforms. These services provide managed security operations, managed network operations, managed applications, and mobility. Cloud managed services further enable companies to enlarge the capabilities, which they lack, and replace processes and functions that suffered huge recurring costs. Apart from this, these services help in optimizing recurring IT costs, automate business processes, and transform IT systems and also enable companies to achieve their organizational objective.

Market Dynamics:

Driver:

Proactive approach to maintenance


A business owner has very little time to think of the IT infrastructure and its functionalities. However, the maintenance of IT systems is crucial for business continuity. This calls for the Managed Service Providers (MSPs), which can proactively solve any issues occurring in IT systems. Most MSPs provide 24x7 monitoring, which attracts customers to use their services. Security solutions monitor IT systems to detect any potential threat or disturbances. Bugs and issues are often troubleshot and remitted before they become a huge concern for the business. This enables the business owners to focus on their core functionalities and not worry about IT systems and maintenance.

Restraint:

Data security and privacy


Cloud managed services involves several third parties outsourcing their abilities, which can cause security and confidentiality concerns. This includes infrastructures in mobility, networks, endpoints, databases, cloud, web applications, and virtualization. With this, the exposure of critical business details becomes easy for any cloud MSPs. Hence, for companies, the concerns for security and privacy remain the top restraints to the adoption of cloud managed services. However, MSPs help organizations maintain proper security and privacy measures for the data that they deploy over the cloud. End-to-end network protection and encryption are provided to customers for extra security. However, due to the growing instances of data breaches, organizations restrain from providing sensitive business data to MSPs.

Opportunity:

Growth in anything-as-a-service technologies


XaaS is called Anything-as-a-Service. The three pillars of cloud computing are Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) that support a broad range of services. XaaS is growing at a faster rate along with cloud computing as the end users are realizing the benefits offered by them. Organizations are even using various technologies as a managed service, such as network-as-a-service and IoT-as-a-service. These can be provided easily by MSPs as they have the supporting infrastructure and expertise in place. Organizations can adopt these services in their core business functions for a pay-per-use basis. This, in turn, ensures optimal use of their IT budgets. The fundamental benefit is the shift from Capital Expenditure (CAPEX) to Operational Expenditure (OPEX), which results in lower Total Cost of Ownership (TCO). Latest software updates can also be deployed easily over the cloud for these cloud managed services.

Threat:

Cloud invoices and multiple accounts


Cloud invoices are often difficult to understand and analyze. There is almost no clarity on the billing structure. Multi-cloud services collate multiple systems and services under one umbrella. Consolidating, managing, and monitoring the use of statistics for billing is a big challenge if not planned properly. Many times, billing from the original cloud providers does not match with MSPs’ billing, which irritates customers and affects the relationship. Moreover, billing becomes more complicated for the hybrid cloud setup. SaaS is usually priced monthly, but IaaS resource usage is pay-per-use pricing. Customers want to know their consumption details. If MSPs do not provide a well-structured and clear billing, customers will bail out from services.

The banking, financial services and insurance (BFSI) segment is expected to be the largest during the forecast period

The BFSI sector, a pioneer in the adoption of computer and networking systems to curtail large, space-intensive repositories and databases, is expected to have a substantial share in the cloud managed services market, during the forecast period. The BFSI sector assesses the risks accurately using big data solutions; thus, enabling firms to make informed decisions, by analyzing transactional data to determine risks based on market behavior, scoring customers, and potential clients. Banks, such as BNY Mellon, Morgan Stanley, Bank of America, Credit Suisse, and PNC, are already working on strategies around big data in banking, further increasing the growth prospect for cloud managed services. Moreover, many banks, such as Thai Bank, Krungsri, are entering into strategic collaborations for upgrading its technology infrastructure to be cloud-ready to support digital banking.

The managed communication & collaboration services segment is expected to have the highest CAGR during the forecast period

Managed communication and collaboration services is expected to grow at the highest CAGR during the forecast period. Most organizations want to improve their employee productivity and enhance outputs. Managed communication and collaboration services help organizations overcome this challenge with ease. These services provide a centralized system for data transfer across mediums, such as mobile devices and personal computers. Multiple team members can work on one document simultaneously, share ideas, and add comments. This lessens the time required to send work back and forth for feedback. The presence of multiple communication products in a user-friendly interface enables businesses to communicate efficiently with different business units globally and ensures the smooth transition of ongoing projects. Due to these mentioned benefits, the demand for cloud-managed communication and collaboration services is high among organizations.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to the strong financial position which enables it to invest heavily in advanced solutions and technologies. Moreover, the region has the presence of several key cloud managed services vendors, such as IBM Corporation (US), CenturyLink Inc., (US) and Cisco Systems Inc. (US), among others. The increasing deployment of big data solutions by major IT enterprises, such as Google and Microsoft, to enhance the efficiency and streamline their business operations is driving the adoption for the cloud managed services market in this region. For instance, IBM Corp, have invested USD 1 billion in Watson, which focuses on big data and artificial intelligence. This, in turn, is expected to drive the growth of the cloud managed services market. The increased sale of smartphones and penetration of mobile device has resulted in the high adoption of BYOD in this region, which is also driving companies to adopt cloud managed services. With many end-user industries, such as healthcare, implementing IoT to enable better operations, the usage of the cloud is increasing, which, in turn, promotes the growth of this market in North America.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR as several countries in the region, such as India, China, Hong Kong, and Japan, are undergoing improving economic and technological advancements. In Asia Pacific, companies are rapidly outsourcing their IT functions, which has increased the demand for cloud and managed services models. This has resulted in the increasing market of managed cloud services for service providers, networking MSPs, and IT service firms. As stated by the Organization for Economic Co-operation and Development (OECD), SMEs provide employment to more than 70% of the population. Countries such as China, India, Singapore, and Japan are the key economies that have been impacted due to COVID-19. Several initiatives taken by governments and enterprises are expected to influence the adoption of the cloud in this region.

Some of the key players profiled in the Cloud Managed Services Market include Cisco, IBM, TCS, Wipro, Ericsson, Infosys, AWS, Accenture, Huawei, HPE, Fujitsu, Alcatel-Lucent, NTT Data, Datacom, and Rackspace.

Key developments:

In October 2021: IBM and Palo Alto Networks collaborated on 5G security. 5G can expand the attack surface of telecom operators and their customers. The 5G evolution is designed to deliver higher data speeds, latency improvements, and the functional redesign of mobile networks to help enable greater agility and efficiency.

In September 2021: NEC expanded its collaboration with AWS in areas, including global 5G and digital government, in support of accelerating digital transformation for customers. NEC aims to develop an end-to-end 5G offering and provide it globally by combining NEC's high-performance cloud-native open 5G mobile core, OSS/BSS solutions, local 5G use cases, and AWS cloud and edge solutions.

In June 2021: Accenture launched myNav Green Cloud Advisor to help companies realize sustainability goals through the cloud. myNav Green Cloud Advisor helps companies design cloud solutions that reduce carbon emissions and lay a foundation for responsible innovation.

In August 2018: Amazon Web Services (AWS) and DXC Technology entered into a partnership to build a new multi-billion dollar DXC – AWS Integrated Practice that will deliver IT migration, application, transformation, and business innovation to clients. The DXC – AWS Integrated Practice will offer clients secure, cloud-first solutions to enable them to innovate in their industries while modernizing their operations for a digital era.

In August 2018: IBM collaborated with CenturyLink to deliver secure, dedicated, and private network connectivity to the IBM Cloud through its Cloud Connect solutions. The collaboration between CenturyLink and IBM builds on CenturyLink's existing support for IBM Business Resiliency Services and IBM Cloud Managed Services.

1 Executive Summary   
     
2 Preface    

 2.1 Abstract   
 2.2 Stake Holders  
 2.3 Research Scope  
 2.4 Research Methodology 
  2.4.1 Data Mining 
  2.4.2 Data Analysis 
  2.4.3 Data Validation 
  2.4.4 Research Approach 
 2.5 Research Sources  
  2.5.1 Primary Research Sources
  2.5.2 Secondary Research Sources
  2.5.3 Assumptions 
     
3 Market Trend Analysis  
 3.1 Introduction  
 3.2 Drivers   
 3.3 Restraints   
 3.4 Opportunities  
 3.5 Threats   
 3.6 End User Analysis  
 3.7 Emerging Markets  
 3.8 Impact of Covid-19  
     
4 Porters Five Force Analysis  
 4.1 Bargaining power of suppliers 
 4.2 Bargaining power of buyers 
 4.3 Threat of substitutes  
 4.4 Threat of new entrants 
 4.5 Competitive rivalry  
     
5 Global Cloud Managed Services Market, By Service Type
 5.1 Introduction  
 5.2 Managed Network Services 
  5.2.1 Network Monitoring & Maintenance Services
  5.2.2 Virtual Private Network
  5.2.3 Managed Network Monitoring and Management
  5.2.4 Managed Network Provisioning
 5.3 Managed Infrastructure Services
  5.3.1 Storage Management
  5.3.2 Server Management 
  5.3.3 Managed Desktop Services
  5.3.4 Managed Print Services
  5.3.5 Managed Backup & Recovery Services
 5.4 Managed Mobility Services 
  5.4.1 Application Management Services
  5.4.2 Device Management Services
 5.5 Managed Data Center Services 
  5.5.1 Storage Services 
  5.5.2 Hosting Services 
 5.6 Managed Security Services 
  5.6.1 Managed Firewall 
  5.6.2 Managed Identity And Access Management
  5.6.3 Managed Vulnerability Management
  5.6.4 Managed Data Loss Prevention
  5.6.5 Threat Management Services
  5.6.6 Vulnerability Management Services
  5.6.7 Incident Management Services
  5.6.8 Managed Antivirus/Anti-Malware
  5.6.9 Managed Risk And Compliance Management
  5.6.10 Managed Security Information And Event Management
  5.6.11 Managed Intrusion Detection System/ Intrusion Prevention System
 5.7 Managed Communication & Collaboration Services
  5.7.1 Managed Voice Over Internet Protocol
  5.7.2 Unified Communications Services
  5.7.3 Email Communications Services
 5.8 Managed Business Services 
  5.8.1 Business Process Services
  5.8.2 Continuity and Disaster Recovery Services
     
6 Global Cloud Managed Services Market, By Organization Size
 6.1 Introduction  
 6.2 Large Enterprises  
 6.3 Small and Medium-Sized Enterprises (SMEs)
     
7 Global Cloud Managed Services Market, By Deployment
 7.1 Introduction  
 7.2 On-Premise  
 7.3 Private Cloud  
 7.4 Public Cloud  
     
8 Global Cloud Managed Services Market, By End User
 8.1 Introduction  
 8.2 Banking, Financial Services and Insurance (BFSI)
 8.3 IT & Telecom  
 8.4 Healthcare and Lifesciences 
 8.5 Aerospace and Defense 
 8.6 Energy and Utilities  
 8.7 Government and Public Sector 
 8.8 Retail and Consumer Goods 
 8.9 Manufacturing & Automotive 
 8.10 Other End Users  
  8.10.1 Food & Beverages 
  8.10.2 Transportation 
  8.10.3 Oil & Gas  
  8.10.4 Real Estate 
  8.10.5 Media  
  8.10.6 Education  
  8.10.7 Travel and Hospitality
     
9 Global Cloud Managed Services Market, By Geography
 9.1 Introduction  
 9.2 North America  
  9.2.1 US  
  9.2.2 Canada  
  9.2.3 Mexico  
 9.3 Europe   
  9.3.1 Germany  
  9.3.2 UK  
  9.3.3 Italy  
  9.3.4 France  
  9.3.5 Spain  
  9.3.6 Rest of Europe 
 9.4 Asia Pacific  
  9.4.1 Japan  
  9.4.2 China  
  9.4.3 India  
  9.4.4 Australia  
  9.4.5 New Zealand 
  9.4.6 South Korea 
  9.4.7 Rest of Asia Pacific 
 9.5 South America  
  9.5.1 Argentina  
  9.5.2 Brazil  
  9.5.3 Chile  
  9.5.4 Rest of South America
 9.6 Middle East & Africa  
  9.6.1 Saudi Arabia 
  9.6.2 UAE  
  9.6.3 Qatar  
  9.6.4 South Africa 
  9.6.5 Rest of Middle East & Africa
     
10 Key Developments   
 10.1 Agreements, Partnerships, Collaborations and Joint Ventures
 10.2 Acquisitions & Mergers 
 10.3 New Product Launch  
 10.4 Expansions  
 10.5 Other Key Strategies  
     
11 Company Profiling   
 11.1 Cisco   
 11.2 IBM   
 11.3 TCS   
 11.4 Wipro   
 11.5 Ericsson   
 11.6 Infosys   
 11.7 AWS   
 11.8 Accenture  
 11.9 Huawei   
 11.10 HPE   
 11.11 Fujitsu   
 11.12 Alcatel-Lucent  
 11.13 NTT Data   
 11.14 Datacom   
 11.15 Rackspace  


List of Tables    
1 Global Cloud Managed Services Market Outlook, By Region (2020-2028) ($MN)
2 Global Cloud Managed Services Market Outlook, By Service Type (2020-2028) ($MN)
3 Global Cloud Managed Services Market Outlook, By Managed Network Services (2020-2028) ($MN)
4 Global Cloud Managed Services Market Outlook, By Network Monitoring & Maintenance Services (2020-2028) ($MN)
5 Global Cloud Managed Services Market Outlook, By Virtual Private Network (2020-2028) ($MN)
6 Global Cloud Managed Services Market Outlook, By Managed Network Monitoring and Management (2020-2028) ($MN)
7 Global Cloud Managed Services Market Outlook, By Managed Network Provisioning (2020-2028) ($MN)
8 Global Cloud Managed Services Market Outlook, By Managed Infrastructure Services (2020-2028) ($MN)
9 Global Cloud Managed Services Market Outlook, By Storage Management (2020-2028) ($MN)
10 Global Cloud Managed Services Market Outlook, By Server Management (2020-2028) ($MN)
11 Global Cloud Managed Services Market Outlook, By Managed Desktop Services (2020-2028) ($MN)
12 Global Cloud Managed Services Market Outlook, By Managed Print Services (2020-2028) ($MN)
13 Global Cloud Managed Services Market Outlook, By Managed Backup & Recovery Services (2020-2028) ($MN)
14 Global Cloud Managed Services Market Outlook, By Managed Mobility Services (2020-2028) ($MN)
15 Global Cloud Managed Services Market Outlook, By Application Management Services (2020-2028) ($MN)
16 Global Cloud Managed Services Market Outlook, By Device Management Services (2020-2028) ($MN)
17 Global Cloud Managed Services Market Outlook, By Managed Data Center Services (2020-2028) ($MN)
18 Global Cloud Managed Services Market Outlook, By Storage Services (2020-2028) ($MN)
19 Global Cloud Managed Services Market Outlook, By Hosting Services (2020-2028) ($MN)
20 Global Cloud Managed Services Market Outlook, By Managed Security Services (2020-2028) ($MN)
21 Global Cloud Managed Services Market Outlook, By Managed Firewall (2020-2028) ($MN)
22 Global Cloud Managed Services Market Outlook, By Managed Identity And Access Management (2020-2028) ($MN)
23 Global Cloud Managed Services Market Outlook, By Managed Vulnerability Management (2020-2028) ($MN)
24 Global Cloud Managed Services Market Outlook, By Managed Data Loss Prevention (2020-2028) ($MN)
25 Global Cloud Managed Services Market Outlook, By Threat Management Services (2020-2028) ($MN)
26 Global Cloud Managed Services Market Outlook, By Vulnerability Management Services (2020-2028) ($MN)
27 Global Cloud Managed Services Market Outlook, By Incident Management Services (2020-2028) ($MN)
28 Global Cloud Managed Services Market Outlook, By Managed Antivirus/Anti-Malware (2020-2028) ($MN)
29 Global Cloud Managed Services Market Outlook, By Managed Risk And Compliance Management (2020-2028) ($MN)
30 Global Cloud Managed Services Market Outlook, By Managed Security Information And Event Management (2020-2028) ($MN)
31 Global Cloud Managed Services Market Outlook, By Managed Intrusion Detection System/ Intrusion Prevention System (2020-2028) ($MN)
32 Global Cloud Managed Services Market Outlook, By Managed Communication & Collaboration Services (2020-2028) ($MN)
33 Global Cloud Managed Services Market Outlook, By Managed Voice Over Internet Protocol (2020-2028) ($MN)
34 Global Cloud Managed Services Market Outlook, By Unified Communications Services (2020-2028) ($MN)
35 Global Cloud Managed Services Market Outlook, By Email Communications Services (2020-2028) ($MN)
36 Global Cloud Managed Services Market Outlook, By Managed Business Services (2020-2028) ($MN)
37 Global Cloud Managed Services Market Outlook, By Business Process Services (2020-2028) ($MN)
38 Global Cloud Managed Services Market Outlook, By Continuity and Disaster Recovery Services (2020-2028) ($MN)
39 Global Cloud Managed Services Market Outlook, By Organization Size (2020-2028) ($MN)
40 Global Cloud Managed Services Market Outlook, By Large Enterprises (2020-2028) ($MN)
41 Global Cloud Managed Services Market Outlook, By Small and Medium-Sized Enterprises (SMEs) (2020-2028) ($MN)
42 Global Cloud Managed Services Market Outlook, By Deployment (2020-2028) ($MN)
43 Global Cloud Managed Services Market Outlook, By On-Premise (2020-2028) ($MN)
44 Global Cloud Managed Services Market Outlook, By Private Cloud (2020-2028) ($MN)
45 Global Cloud Managed Services Market Outlook, By Public Cloud (2020-2028) ($MN)
46 Global Cloud Managed Services Market Outlook, By End User (2020-2028) ($MN)
47 Global Cloud Managed Services Market Outlook, By Banking, Financial Services and Insurance (BFSI) (2020-2028) ($MN)
48 Global Cloud Managed Services Market Outlook, By IT & Telecom (2020-2028) ($MN)
49 Global Cloud Managed Services Market Outlook, By Healthcare and Lifesciences (2020-2028) ($MN)
50 Global Cloud Managed Services Market Outlook, By Aerospace and Defense (2020-2028) ($MN)
51 Global Cloud Managed Services Market Outlook, By Energy and Utilities (2020-2028) ($MN)
52 Global Cloud Managed Services Market Outlook, By Government and Public Sector (2020-2028) ($MN)
53 Global Cloud Managed Services Market Outlook, By Retail and Consumer Goods (2020-2028) ($MN)
54 Global Cloud Managed Services Market Outlook, By Manufacturing & Automotive (2020-2028) ($MN)
55 Global Cloud Managed Services Market Outlook, By Other End Users (2020-2028) ($MN)
56 Global Cloud Managed Services Market Outlook, By Food & Beverages (2020-2028) ($MN)
57 Global Cloud Managed Services Market Outlook, By Transportation (2020-2028) ($MN)
58 Global Cloud Managed Services Market Outlook, By Oil & Gas (2020-2028) ($MN)
59 Global Cloud Managed Services Market Outlook, By Real Estate (2020-2028) ($MN)
60 Global Cloud Managed Services Market Outlook, By Media (2020-2028) ($MN)
61 Global Cloud Managed Services Market Outlook, By Education (2020-2028) ($MN)
62 Global Cloud Managed Services Market Outlook, By Travel and Hospitality (2020-2028) ($MN)
     
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

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