The Global Cloud Managed Services Market size is expected to reach $153.5 billion by 2027, rising at a market growth of 10.3% CAGR during the forecast period.
Cloud Managed Services is the outsourcing of everyday IT management for cloud-based services and technical assistance to a third-party organization that automates and improves business operations. Internal IT staff of a company doesn't always have the expertise needed to adequately track and manage a cloud system. Companies frequently involve a third-party cloud managed services provider to oversee cloud security, computing, storage, network operations, application stacks, vendors, and other aspects of the cloud. Managed network operations, cloud management, managed security activities, IT life cycle management, and application and mobility management are some of the services included in cloud managed services.
The market for cloud managed services is expected to grow as firms seek to reduce operational and infrastructure expenses associated with business processes. Outsourcing cloud services to a third-party allows firms to concentrate on their core capabilities, increasing overall productivity. The growing use of big data has resulted in the increased demand for managed analytical services and cloud storage. Furthermore, the growing demand for dependability and scalability may drive the demand for these services. These services allow businesses to scale up and down their activities by giving custom-made offers to the available services.
The need for cloud-based managed security services is projected to increase as companies such as the American Red Cross, Netflix, and Rovio progressively use a wide range of Software-as-a-Service (SaaS) applications and other cloud-based services. Increased mobile device adoption and the trend of BYOD in numerous enterprises are also expected to fuel demand for this industry, which will control these devices for usage and security.
Due to important breakthroughs in big data, mobility services, and other areas, the market has seen rapid expansion in recent years. The growing trend of digitalization and mobility among businesses around the world will provide enormous chances for market players to increase their profits.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Amazon Web Services, Inc. is the major forerunner in the Cloud Managed Services Market. Companies such as IBM Corporation, Cisco Systems, Inc. and Accenture PLC are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Hewlett-Packard Enterprise Company, Ericsson AB, Cisco Systems, Inc., Atos Group, Accenture PLC, Fujitsu Limited, Infosys Limited, NTT Data Corporation, and Amazon Web Services, Inc.
Cloud Managed Services is the outsourcing of everyday IT management for cloud-based services and technical assistance to a third-party organization that automates and improves business operations. Internal IT staff of a company doesn't always have the expertise needed to adequately track and manage a cloud system. Companies frequently involve a third-party cloud managed services provider to oversee cloud security, computing, storage, network operations, application stacks, vendors, and other aspects of the cloud. Managed network operations, cloud management, managed security activities, IT life cycle management, and application and mobility management are some of the services included in cloud managed services.
The market for cloud managed services is expected to grow as firms seek to reduce operational and infrastructure expenses associated with business processes. Outsourcing cloud services to a third-party allows firms to concentrate on their core capabilities, increasing overall productivity. The growing use of big data has resulted in the increased demand for managed analytical services and cloud storage. Furthermore, the growing demand for dependability and scalability may drive the demand for these services. These services allow businesses to scale up and down their activities by giving custom-made offers to the available services.
The need for cloud-based managed security services is projected to increase as companies such as the American Red Cross, Netflix, and Rovio progressively use a wide range of Software-as-a-Service (SaaS) applications and other cloud-based services. Increased mobile device adoption and the trend of BYOD in numerous enterprises are also expected to fuel demand for this industry, which will control these devices for usage and security.
Due to important breakthroughs in big data, mobility services, and other areas, the market has seen rapid expansion in recent years. The growing trend of digitalization and mobility among businesses around the world will provide enormous chances for market players to increase their profits.
COVID-19 Impact Analysis
The COVID-19 has had a variety of consequences on the worldwide managed business services sector, including direct effects on production and demand, supply chain and marketplace disruptions, and financial impacts on enterprises and financial markets. The usage of cloud, AI, and big data has grown as a result of the COVID-19 pandemic. Many businesses have created and adopted new policies and regulations regarding remote work. The implications of SARS-CoV-2 virus are different on different age groups, thus different sectors of the technology industry are affected in a variety of ways. Companies which used to offer technological solutions to highly affected sectors during Covid-19 such as travel, retail, entertainment and hospitality were adversely affected during the pandemic, whereas, companies which provided remote-working solutions experienced growth even during the pandemic.Market Growth Factors:
Rise in the inclination towards management along with the emergence of latest technologies
Business owners have very little time to ponder about the IT infrastructure and its functionalities. But the management of IT systems is essential for business continuity. This problem is solved by Managed Service Providers (MSPs). They can proactively fix any issues present in IT systems. Majority of the MSPs promise 24*7 monitoring to attract customers. Security solutions keep a check on IT systems to find any potential danger or disturbances. Bugs and other issues are troubleshot and removed before they can cause any damage to the business. This helps the business owners in focusing on their core functionalities without any stress regarding the IT systems and maintenance.Increase in awareness among end-users
Managed cloud services will be ahead of all technologies as organizations create plans and adopt new approaches to meet their IT and network needs. Various organizations already use cloud servers to run their IT applications such as accounting, finance customer relationship management, and many more. The high adoption of cloud solutions for the purpose of setting up and managing business operations is changing the state of cloud adoption around the world. For example, Betabrand, a clothing company based in the US, transferred its operations Google Cloud infrastructure, Kubernetes, when Black Friday was on the horizon in 2017. This helped them manage peak loads on the day without any issues. The market for cloud-managed services is supposed to grow with widespread adoption among businesses. Along with that, the rise in the awareness among companies regarding the benefits of adopting cloud managed services is expected to escalate the growth of the market over the forecast period.Marketing Restraining Factor:
Privacy and Data security
The biggest drawback of involving several third parties to implement cloud managed services is the security and confidentiality concerns. This includes infrastructures in mobility, networks, endpoints, databases, cloud, web applications, and virtualization. As a result, critical business details are at the risk of exposure. Thus, for many companies, their apprehension regarding security and privacy is the topmost constraint for adopting cloud managed services. However, MSPs have tackled this issue by ensuring proper privacy and security measures are in place to safeguard the data which has to be deployed over cloud. End-to-end network protection and encryption are few of the methods employed to give customers added security.Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). Small and medium enterprises segment witnessed a significant revenue share in the cloud managed services market in 2020. SMEs are classified as organizations which have 1 to 999 numbers of employees. Due to their financial and resource limitations as compared to larger firms, they need more efficient methods to solve their complex problems. This can help them better optimize their costs. The number of SMEs is increasing throughout the world and the need for managed services is growing along with it. Cloud services have become a crucial part of the business process because of the flexibility and ease of use they provide. SMEs stand to benefit regarding their security and compliance and reduction in downtime via their adoption of managed services.Vertical Outlook
Based on Vertical, the market is segmented into BFSI, IT & Telecom, Manufacturing, Government, Retail, Healthcare, Energy & Utilities, and Others. The banking, financial services and insurance segment acquired the largest share of the revenue in the cloud managed services market in 2020. The BFSI Cloud managed services offer more advantages such as more flexible choices, banking simplification, and an improved & positive customer experience to the customers. This BFSI industry vertical is particularly centered on customers. Thus, improving the experience of customers is of utmost priority in this vertical.Service Type Outlook
Based on Service Type, the market is segmented into Managed Infrastructure Services, Managed Network Services, Managed Security Services, Managed Communication & Collaboration Services, Managed Business Services, and Others. Managed network services procured the second largest revenue share in the cloud managed services market in 2020. These are networking applications, functions, and services that businesses outsource to a managed service provider (MSP) to be remotely run, monitored, and maintained. Basic network access and transport services, such as classic leased WAN and LAN lines, to modern software-defined WAN (SD-WAN) connections and virtual network services, are all part of managed network services. Aside from network access and transport, managed services such as WAN optimization, unified messaging, network management, managed security firewalls, and virtual private networks are all accessible (VPNs).Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America acquired the largest revenue share in the cloud managed services market in 2020. The major factors which positively affect the growth of cloud managed services in this region are dynamic business environment, rapid adoption of mobility, growing need to achieve more productivity and efficiency through managed services. Majority of companies in North America have been quick to adopt and execute cloud managed services. The US government released the Federal Cloud Computing Strategy which discussed the adoption of smart cloud technology.The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Amazon Web Services, Inc. is the major forerunner in the Cloud Managed Services Market. Companies such as IBM Corporation, Cisco Systems, Inc. and Accenture PLC are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Hewlett-Packard Enterprise Company, Ericsson AB, Cisco Systems, Inc., Atos Group, Accenture PLC, Fujitsu Limited, Infosys Limited, NTT Data Corporation, and Amazon Web Services, Inc.
Partnerships, Collaborations and Agreements:
- Feb 2022: IBM joined hands with SAP, a multinational software company. Together, the companies aimed to deliver consulting and technology experience to make it easy for buyers to hold hybrid cloud access along with move mission-critical workloads from SAP solutions to the cloud for the organized and non-regulated enterprise.
- Dec 2021: NTT West Group came into a partnership with Hewlett Packard Enterprise's GreenLake platform along with Microsoft's Azure. Through this partnership, NTT West is expected to expand HPE's GreenLake platform on HPE ProLiant for Azure Stack Hub that allows consumers to run Azure services on-premises, in their own data centers.
- Nov 2021: Amazon Web Services teamed up with Compagnie Financière Richemont SA, a Swiss luxury group and owner of prestigious brands and businesses. Through this collaboration, Compagnie Financière Richemont SA is expected to use AWS's broad varieties of cloud capabilities such as analytics, database, security, and machine learning, to promote product innovation around its eCommerce suite and physical retail working.
- Nov 2021: NTT DATA came into a partnership with Ensono, a leading end-to-end managed services provider. Through this partnership, the companies aimed to deliver the mainframe as service as well as IBM authorized services to NTT DATA's buyer base. Additionally, this partnership enhances NTT DATA flexibility and adds scale to its service abilities that is expected to help consumers to manage, transform, and grow mainframe and IBM I abilities.
- Nov 2021: Accenture extended its partnership with AWS, a subsidiary of Amazon providing on-demand cloud computing platforms. This partnership aimed to construct industry-based accelerators to escalate distribution to help enterprises train employees to better understand cloud abilities.
- Nov 2021: Atos extended its partnership with OVHcloud, a French cloud computing company. Together, this partnership aimed to launch Atos OneCloud Sovereign Shield with an integrated suite and mixed development and research. Moreover, the companies is expected to provide dominating sovereign cloud solutions for large French enterprises.
- Oct 2021: IBM joined hands with Apptio, a leading provider of technology business management SaaS applications. Under this collaboration, the companies aimed to assist consumers to enhance hybrid cloud technology drive adoption as well as decision-making of Red Hat OpenShift along with IBM's hybrid cloud access. Additionally, by integrating Apptio's financial analytics and decision support along with IBM's open hybrid cloud leadership to create an offering to provide extraordinary value to the consumers at all stages of cloud journeys.
- Sep 2021: Ericsson joined hands with Oman Telecommunications, the primary provider of internet services. Together, the companies introduced Service Operations Center to improve the network service quality. Additionally, SOC launch is expected to upgrade Omantel's functioning as part of a wide strategic goal focused on service-centric access that is expected to improve consumer experiences.
- Jun 2021: Amazon Web Services joined hands with Larsen & Toubro Infotech, a global technology consulting and digital solutions company. Under this collaboration, LTI is expected to expand AWS's habit to deliver consumers across the world to leverage AWS services to propel digital up-gradation, innovate quickly, and solve critical enterprise problems.
- Jun 2021: Hewlett Packard extended its partnership with Nutanix, an American cloud computing company. Through this partnership, the companies aimed to propel hybrid cloud and multi-cloud adoption by providing Nutanix Era, a multi-database management and operations solution, arranged with HPE ProLiant servers, as a service within HPE GreenLake.
- May 2021: Fujitsu joined hands with Amazon Web Services, an Amazon.com company. Together, the companies aimed to design completely managed mobility solutions, provided by Fujitsu through AWS Marketplace by integrating Fujitsu Digital Twin and security solutions with AWS's world-leading cloud services.
- Mar 2021: IBM extended its partnership with Colt Technology, the Global high-bandwidth connectivity systems provider. This expansion aimed to add on IBM Cloud Satellite on the Colt edge platform to help consumers tackle hybrid cloud technologies to achieve superior enhanced security, deployment flexibility, and approach to advanced services to propel innovation, all the way to the edge.
- Mar 2021: Infosys came into a partnership with LivePerson, a global leader in Conversational AI. Through this partnership, the companies aimed to assist the enterprise to manage AI-powered interaction with customers and workers across websites, apps, messaging, and SMS every day. Additionally, this is expected to allow the enterprise to unleash bigger growth by integrating Infosys Cobalta, a set of solutions, services, and platforms to propel an organization's journey with LivePerson's Conversational Cloud.
- Feb 2021: Accenture came into a partnership with VMware, California-based cloud services. Together, the companies aimed to form a new business that is expected to help enterprises to adopt a cloud-first strategy, boosting migration to the cloud, building advanced apps more quickly, and using the cloud as an authority for innovation and new business models.
- Nov 2020: Ericsson joined hands with Telstra, an Australian telecommunications company. Together, the companies aimed to design enterprise edge cloud solutions, particularly for the Telstra domain to force the borderline of technological innovation, providing 5G as well as edge to the organization, while supporting Telstra to design new services across its network.
- Nov 2020: Hewlett Packard came into a partnership with Wipro Limited, a leading global information technology. Together, the companies aimed to provide an offering of hybrid cloud and architecture solutions as a service.
- Aug 2020: Hewlett Packard formed a partnership with SAP, a multinational software corporation. Through this partnership, the companies aimed to provide consumer-based SAP HANA Enterprise Cloud along with HPE GreenLake, as a complete managed service at the edge, in the consumer data center or confluence facility of choice. Additionally, consumers is expected to be able to track SAP software landscape as well as data on-premises while growing the benefits of a subscription-based, elastic, agile, and constant cloud experience from SAP with HPE GreenLake.
Acquisitions and Mergers:
- Dec 2021: Atos took over AppCentrica, a Canadian-based technology, and management consulting company. Through this acquisition, Atos aimed to improve its expertise in Canada as a strategic domain as well as is expected to collaborate with consumers to deliver safe and secure decarbonized digital solutions as part of factory up-gradation programs.
- Nov 2021: IBM took over SXiQ, an Australian digital transformation services company. Through this acquisition, SXiQ is expected to enhance IBM's hybrid cloud and AI strategy by delivering organization to upgrade and modernize critical task applications on various platforms and clouds. Additionally, SXiQ is expected to enhance IBM Consulting's abilities in New Zealand and Australia to modernize technology & applications architecture in the cloud.
- Oct 2021: Accenture took over BENEXT, an independent product consulting company. Under this acquisition, around 160 highly expert professionals to OCTO Technology, is expected to widely expand the European and global abilities of Accenture Cloud First.
- Jul 2021: Accenture completed the acquisition of Linkbynet, a leading cloud services provider headquartered in France. Under this acquisition, Linkbynet is expected to improve the global abilities of Accenture Cloud First to bring together unmatched breadth and depth of industry cloud solutions, cloud expertise, ecosystem partner abilities, and assets that help buyers realize larger value from the cloud at scale and speed.
- Jul 2021: Hewlett Packard signed an agreement to acquire Zerto, an industry leader in cloud data management and protection. This acquisition aimed to expand HPE GreenLake cloud data services with Zerto's dominant cloud data management enabling consumers to secure data and quick response on insight, from edge to cloud.
- Feb 2021: Cisco completed the acquisition of IMImobile, a leading global provider of cloud communications software and services. This acquisition aimed to integrate IMImobile's solution along with Webex Contact Center, to design a new robust Customer Experience as a Service offer. Additionally, this suite is expected to combine artificial intelligence, collaboration, Communications, cloud contact center, and experience management as a Service to generate a single solution that is expected to give the enterprise the capability to deliver the exceptional experiences consumers require.
- Jan 2021: IBM signed an agreement to acquire Taos, a leading cloud professional, and managed services provider. Under this acquisition, Taos in-depth expertise, innovation solution, and public cloud partnership is expected to propel the adoption and growth of IBM's hybrid cloud platform across America. Additionally, Taos provides organizations to select from the various provider for IT and business needs as well as consumers to successfully trace open hybrid cloud journeys along with providers.
- Jan 2021: Cisco took over Banzai Cloud, a privately held company headquartered in Budapest, Hungary. Through this acquisition, the Banzai Cloud team is expected to expand Cisco's expertise and abilities through its demonstrated experience with the entire end-to-end cloud-native application, deployment, runtime, development, and security progress.
- Dec 2020: IBM completed the acquisition of Nordcloud, an IT service management company. Through this acquisition, Nordcloud's in-depth expertise is expected to boost buyers' digital transformations as well as support the additional adoption of IBM's hybrid cloud platform.
- Aug 2020: Cisco acquired ThousandEyes, a network intelligence company. This acquisition aimed to combine Cisco's strength in network and application performance within ThousandEyes visibility into the internet to enable consumer insight of end-to-end view into the digital delivery of applications and services across the internet. Additionally, this integration is expected to allow consumers to precise insufficiency and enhance application and network performance around cloud and enterprise networks.
- Mar 2020: Infosys took over Simplus, one of the fastest-growing Salesforce Platinum Partners in the USA and Australia. This acquisition aimed to uplift Infosys position as an end-to-end Salesforce organization cloud services and solutions provider, providing clients incomparable abilities for cloud-first digital up-gradation.
Product Launches and Product Expansions:
- Sep 2021: NTT DATA introduced Global Insurance Digital Platform, a cloud-based digital platform, and partner ecosystem. This cloud base platform provides top-notch partnerships, Business Processes as a Service, technology to the Life & Annuity Industry, consulting, and Third-party Administration. Additionally, GIDP capabilities with a combined partner help to introduce new products, reduce operational costs, proactively use data, remain competitive, and mitigate risk.
- May 2021: Hewlett Packard Enterprise launched a data services platform on its Unified DataOps vision. The platform is developed to address the data explosion edge-to-cloud, crash the complexity and silos that curse the data environment, minimize business risk and increase agility and innovation.
- Mar 2021: IBM Security introduced Cloud Security Posture Management, Cloud Security Strategy, Container Security, Cloud Native Security Services. The services offer enterprise to handle cloud policies, security strategy, and manage hybrid cloud ecosystem by providing cloud-native, IBM, and third-party technologies along with IBM expertise.
- Nov 2020: Infosys introduced Live Enterprise Application Management. This platform helps enterprises to operate IT offerings by building responsive value chains, the engine driving instinctive decisions, and providing insight experiences for the enterprise. Additionally, this solution improves by the cloud abilities brought by Infosys Cobalt, helps organizations propel digital transformation rationalize, initiative, as well as manage IT offering, embrace digital application operated by microservices infrastructure and adopt cloud as well as IIOT faster.
- Nov 2020: Atos introduced Atos OneCloud, a unique initiative to pro-actively accelerate its clients' migration. The platform is expected to enable the consumer to unlock the enterprise potential of Cloud within business procedure optimization and application modernization, to make it more nimble along with more data-driven and consumer-focused.
- Oct 2020: Cisco introduced Cisco Nexus Dashboard, Cisco Identity Services Engine, Cisco Intersight. These solutions simplify functioning around the multi-cloud and on-premise data centers ecosystem. Additionally, Cisco is expected to allow higher business activity for its consumers and authorize designers to provide and scale innovative application experiences quicker.
- Aug 2020: Infosys introduced Infosys Cobalt, a set of services, solutions, and platforms. The Infosys Cobalt assists businesses to redevelop the organizations, from the core as well as construct new cloud-first abilities to generate smooth experiences in private, public, and hybrid cloud, around SaaS, PaaS, and IaaS landscapes. Additionally, with Infosys Cobalt's community, the organization is expected to quickly introduce solutions and generate business models according to market needs while adhering to strict regional, industry, and global security and regulatory standards.
- Jul 2020: Hewlett Packard introduced HPE Ezmeral, a new brand and software portfolio. The software provides a wide range of offering such as management and orchestration, IT automation and AI-driven operations, security, and AI/ML and data analytics to cost control.
- Jun 2020: Fujitsu Limited introduced Fujitsu Hybrid IT Service in Japan. The service provides the offering of solutions that integrate technologies and services related to the network, data center, systems operation, maintenance, and security to offer in new models including subscriptions and prefixes.
Product Launches and Product Expansions:
- Oct 2021: Ericsson expanded its geographical footprints by establishing a new Cloud Native and Orchestration Center in North America. This platform is expected to support consumers to tackle challenges such as applications and platform life cycle administration, automation as well as migration, which tend to be more confusing for telco solutions.
- Jul 2021: NTT DATA expanded its geographical footprints by establishing NTT DATA in Europe, the Middle East, Africa, and Latin America. This expansion allowed NTT DATA to cooperate with other NTT Group enterprises as one NTT and jointly provide communities, consumers, and people with end-to-end value theses from digital & IT modernization, business consulting, business process services, industry solutions, and managed services to the edge-to-cloud network fabric.
- Nov 2020: Ericsson expanded its geographical footprint by establishing a new managed services center in Turkey. This center is expected to promote design solutions as well as high-end engineering based on next-generation technologies such as Machine Learning and Artificial Intelligence (AI).
Scope of the Study
Market Segments Covered in the Report:
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
By Vertical
- BFSI
- IT & Telecom
- Manufacturing
- Government
- Retail
- Healthcare
- Energy & Utilities
- Others
By Service Type
- Managed Infrastructure Services
- Managed Network Services
- Managed Security Services
- Managed Communication & Collaboration Services
- Managed Business Services
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
Companies Profiled
- IBM Corporation
- Hewlett-Packard Enterprise Company
- Ericsson AB
- Cisco Systems, Inc.
- Atos Group
- Accenture PLC
- Fujitsu Limited
- Infosys Limited
- NTT Data Corporation
- Amazon Web Services, Inc.
Unique Offerings from the publisher
- Exhaustive coverage
- The highest number of market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Competition Analysis - Global
Chapter 4. Global Cloud Managed Services Market by Enterprise Size
Chapter 5. Global Cloud Managed Services Market by Vertical
Chapter 6. Global Cloud Managed Services Market by Service Type
Chapter 7. Global Cloud Managed Services Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- IBM Corporation
- Hewlett-Packard Enterprise Company
- Ericsson AB
- Cisco Systems, Inc.
- Atos Group
- Accenture PLC
- Fujitsu Limited
- Infosys Limited
- NTT Data Corporation
- Amazon Web Services, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 303 |
| Published | March 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 77458.2 Billion |
| Forecasted Market Value ( USD | $ 153505.6 Billion |
| Compound Annual Growth Rate | 10.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
