The global cloud managed services market is anticipated to expand leaps and bounds in the near future as an increasing number of small and medium enterprises are shifting their business processes in a manner to utilize cloud computing and improve efficiency. As the opportunities multiply, a recent business study by Transparency Market Research (TMR) has notified that a number of new companies will venture into this market and the fragmented scenario of the competitive landscape will remain so in the near future. The report identifies Hewlett Packard Enterprises, Microsoft Corp., NTT Data Corp., Rackspace, NEC Corp., Cisco Systems Inc., IBM Corp., VMWare, Huawei Technologies, and AT&T as a few of the leading companies current operating in the global cloud managed service market.
The analysts of the report have projected the demand in the global cloud managed service market to expand at a notable CAGR of 9.60% during the forecast period of 2017 to 2022, providing for an opportunity worth of US$86.4 bn by 2022, incrementing from its valuation of US$54.6 bn in 2017. Going forward, the market players will indulge into acquisition of niche players in order to stay ahead of the curve and strengthen their geographical presence.
Based on services, the global cloud managed services market has been segmented into managed network service, managed security service, IT infrastructure management service, managed mobility, and others. Among these, the managed network services segment is anticipated to exhibit higher growth rate than the rest, although in a longer run, cloud-based security services segment is poised to escalate quickly as the companies aspire to meet the increasing data security concerns. Based on end-users, the market has been bifurcated into large enterprise and small and medium enterprises (SMEs), whereas on the basis of industry vertical, the market for cloud managed service has been classified into banking, financial services, and insurance, IT and telecom, government, healthcare, and others.
Geographically, the analysts have rated North America as most profitable region and project it to continue on to contribute the maximum demand throughout the forecast period, which is a reflection of the presence of a large number of pioneering companies in the developed country of the U.S. The North America cloud managed service market has been projected to expand at a CAGR of 8.10% during the said forecast period.
Constant Need to Improve Efficiency Driving Demand
For large as well as small and medium enterprises, efficiency is of optimum importance and cloud automation has come in as a boon for them. These automation methods helps the business owners to radically improve their delivery speed with a robust data center infrastructure and simplify monotonous processes. The growing adoption of cloud managed services offers helps in sharing and decreasing cost of functionalities of the organizations and makes outsourcing possible. These processes also go a long way toward reducing CAPEX by freeing up internal resources. Increasing trend of cloud analytics, advent of big data, constant focus of companies to increase enterprise mobility, and growing adoption among SMEs are some of the key factors augmenting the demand in the global cloud managed service market. On the other hand, privacy and data security concerns, limitations pertaining to IT experts in cloud, and inefficiency of cloud managed service flow are a few restraints challenging the market from attaining its true potential. That being said, the stockholders of the global cloud managed service market are poised to gain new opportunities if they expand geographically, primarily into emerging economies in Asia Pacific and other BRICS nations.
The information presented in this review is based on a Transparency Market Research report, titled, “Cloud Managed Service Market (Service - Managed Network Service, Managed Security Service, Managed Mobility, and IT Infrastructure Management Service; End User - Large Enterprises and Small and Medium Enterprises (SMEs); Industry - BFSI, IT and Telecom, Healthcare, and Government) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2022.”
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