Market Overview:

The Global Cloud Managed Services Market Is Projected To Grow At A Rate Of 13.40% CAGR During The Forecast Period. It Is Estimated That The Market Will Grow At USD 47.24 Billion By 2022 And Further Reach Up To USD 144.18 Billion By 2030 During The Forecast Period 2023-2030.

Cloud managed services is a practice of outsourcing IT resources and management deployed on the cloud. Growing demand among companies to slash operating and infrastructural costs to manage business processes is one of the major factors driving the growth of the market. The externalization of cloud resources to third parties increases organizational competitiveness, allowing companies to concentrate on their core competencies. The expanding Big Data field has generated a massive demand for managed cloud computing and analytical services.

These services are made to help businesses save time and money while getting the most out of cloud services. Managed Business Services, Managed Network Services, Managed Security Services, Managed Infrastructure Services, Managed Mobility Services, and Managed Communication and Collaboration Services are all types of managed services that can be found in the cloud.

COVID-19 Impact:

The COVID-19 has had many effects on the global market for managed business services, including direct effects on supply and demand, disruptions to supply chains and markets, and financial effects on companies and financial markets. As a result of the COVID-19 epidemic, there has been a big rise in the use of cloud, AI, and big data. Several companies have changed their policies and rules about working from home. Because of this growth, the giant of the cloud industry has been able to change its services to handle the increasing pressure. Also, the demand for data centers is growing as more businesses use IoT, big data analytics, and the cloud as key parts of their digital transformation. During COVID-19, this is expected to help the growth of the global market.

Market Dynamics:

Market Trends:

• Growing Adoption of Cloud Managed Security Services

Private cloud deployments are becoming more popular, which will help the market grow. Private cloud deployments will speed up IT services by lowering IT costs, improving scalability, giving access to automatic updates, and so on. Different industries have started to use cloud services because there is a demand for them. Also, the data storage capacity is huge compared to public cloud deployment. Even though they still use traditional deployments, businesses are changing to meet customer needs.

Organizations have been using hybrid cloud technologies to make the cloud infrastructure accessible and flexible without having to move directly to the cloud or to multiple clouds, either public or private, since one cloud vendor won't be able to provide all the functionality. So, as digital network channels become more popular, hybrid cloud platforms give managed cloud service providers new ways to invest their money.

Driving Factors:

• Growing Need to Manage Critical Business Applications & IT Systems 

More and more companies are using managed services to improve their operations, security, and organizational abilities. Cloud managed services are useful for businesses because they can get rid of complicated system integration services and help set up a well-developed solution to make sure cloud scalability and economics. Most small and medium-sized businesses can't afford to hire full-time IT professionals to handle cloud services because it's so expensive. So, outsourcing these services lets businesses manage and cut network maintenance costs without losing productivity or security.

• Increased Cloud Adoption During COVID-19 Pandemic

COVID-19 has changed the way business is done all over the world. Even though the COVID-19 outbreak has shown where business models in different industries are weak, it has also given cloud managed service providers several chances to grow their business across enterprises. Due to the pandemic, there was a worldwide lockdown and people had to work from home. This forced both small and large businesses to focus on digital transformation and use cloud services in a big way. Organizations find that moving to the cloud saves them money and gives them more freedom.

• Burgeoning Need for Handling Critical IT Systems & Business Applications 

As companies and financial firms try to navigate the uncertain economic and regulatory landscape of today, the risk and compliance model has been under more pressure. Companies that want to improve their organization, operations, and security by giving more strategic answers are using managed services more and more.

Cloud managed services are good for businesses because they let them get rid of complicated system integration services and help them set up a well-developed solution to make sure the cloud is scalable and cost-effective. Having full-time IT staff to manage cloud services is very expensive and most small and medium-sized businesses can't afford it. So, outsourcing these services lets businesses control and lower network maintenance costs without sacrificing security or productivity.

Cloud services also have several advantages over traditional services, such as the ability to centralize applications and network services, build storage and backup, and manage all network management layers. So, more and more companies are using cloud-managed services and finding that they can help their business grow.

Restraining Factors:

• Lack of Integrated Workforce Management and Data Management 

This market can't grow as fast as it could because there aren't enough people who work in IT and cybersecurity. Because of this flaw, organizations won't be able to meet their IT security needs. If a company doesn't have enough IT and cybersecurity professionals, hackers and malware can get into the IT ecosystem and steal valuable data and resources. For example, in September 2019, AutoClerk Inc., a major provider of property management solutions, had a security breach in its Elasticsearch database. This led to the loss of 179 GB of data, including the travel plans of thousands of US government and Department of Homeland Security employees (DHS). So, managed cloud services can't be put into place without good cybersecurity practices.

In addition, the high cost of these services, as well as concerns about data privacy and security, is one of the most important things holding the market back.

• Concerns Pertaining to Lack of Skilled Professionals

One of the main things that makes it hard for this market to grow is that there aren't enough IT and cybersecurity professionals. Businesses will not be able to meet their IT security needs because of this flaw. Hackers and viruses can get into an organization's IT ecosystem if it doesn't have enough IT and cybersecurity experts. This can lead to the loss of important data and resources. Also, one of the biggest things slowing the growth of the market is the high cost of these services, as well as concerns about data privacy and security.

Opportunities:

• Increasing adoption of cloud managed services by SMEs

Small and medium-sized businesses are expected to spend a lot more on IT, so they are likely to use more managed services. A study says that between 2018 and 2023, SMEs in Europe, the Middle East, and Africa (EMEA) will spend 3.8% more on IT than the overall market, which will spend 2.7% more. Small and medium-sized businesses (SMEs) are spending more on IT, which is likely to increase the demand for MSPs that can provide services that are both efficient and cost-effective.

Cybercrime is more likely to happen at SMEs than at large companies. The Verizon 2019 Data Breach Investigations Report (DBIR) says that small businesses are the target of 43% of cyberattacks. Small and medium-sized businesses (SMEs) have tight budgets and must follow data protection laws. Another study shows that companies use cloud managed services because they want to cut CAPEX and other costs, improve efficiency, make up for a lack of internal skills, and deal with security concerns. SMEs are turning to cloud managed service providers more and more to deal with these problems.

• Higher Flexibility

The amount that Small and Medium Enterprises (SMEs) spend on IT is going up. During the period of the forecast, it is expected that the number of SMEs that use managed services will raise the demand for cloud managed services. In the next few years, there will be more demand for cloud managed services that are both cost-effective and efficient. Cybercrimes are also more likely to happen at SMEs than at large companies. They also have to work with a limited budget and follow laws about privacy and compliance. More people will use these services if they are more flexible, and the market will have more opportunities in the future.

Challenges:

• Increase in Regulations and Compliances

In the past few years, regulatory and compliance requirements have grown because business needs have changed, there have been more data breaches and cyberattacks, and people are more worried about data security. Companies have to work hard to stay in business on the market by taking steps to meet regulatory requirements, avoid fines, keep customers, and keep legal action from happening. The cloud managed services market serves many industries, including BFSI, IT and ITeS, manufacturing, healthcare and life sciences, retail and consumer goods, and more. Different rules and regulations govern each of these industries, which can slow down the managed services market.

• Lack of Infrastructure

Even though there are many opportunities, the market is likely to face a number of problems. In developing countries, the market for cloud-managed services will require cutting-edge technologies. Because countries like Mexico, India, and others don't have enough infrastructure, it will be hard for the market for cloud managed services to grow.

Strategic Development:

• In August 2022 - SkyMax and Ericsson signed a memorandum of understanding to work together to build sub-Saharan Africa's next-generation 5G broadband network, which will include a platform for delivering digital services.
• In June 2022 - Cisco released new cloud management features that make the Cisco Meraki, Cisco Catalyst, and Cisco Nexus portfolios easier to use together. They also released a new Cisco ThousandEyes product that can predict and improve WAN performance. Cisco's strategy is to give customers the agility, resilience, and productivity their businesses need to thrive in the unpredictable power of cloud-managed platforms. These innovations show how Cisco plans to do this.
• In October 2021 - IBM and Deloitte announced the launch of DAPPER. DAPPER is an AI-enabled managed analytics solution that is meant to help organizations speed up their adoption of hybrid cloud and AI. Its end-to-end capabilities make sure that data insights are delivered through a managed service offering that is safe and easy to use.
• In March 2020 - Fujitsu released the Fujitsu Cloud Service for OSS. This service makes it possible to build and deploy information systems that handle highly sensitive information in a secure and flexible way. Usually, these systems are deployed on-premises or in the cloud. This is being done to help the government of Japan. Fujitsu's government cloud is safe enough to meet the security requirements that Japanese government agencies have.
• In August 2020 - Augmentt Technology Inc., one of the biggest SaaS solution providers, released Augmentt Discover, Augmentt Optimize, and Augmentt Manage, a set of solutions for managed service providers (MSP). With these solutions, the company wants to help the huge number of MSPs that are switching from SaaS to cloud managed services.
• In November 2019 - DXC Technology Company released DXC Managed Multi-Cloud Services powered by VMware. This solution, which just came out, lets businesses manage hybrid cloud environments and optimize cloud workloads in a consistent way.

Key Vendors:

Top market players are

• Accenture PLC (Dublin, Ireland)

Accenture PLC offers services and solutions in the areas of management consulting and technology consulting. The company works with clients all over the world to provide a wide range of specialized services and solutions. Accenture is a group of companies that work together to offer consulting, technology, outsourcing, and strategic alliances.

• Alcatel-Lucent S.A. (Boulogne-Billancourt, France)

Alcatel-Lucent France provides telecommunications services. The company provides services for fixed and mobile phones, video conferencing, cloud computing, outsourcing, consulting, and integration. Alcatel-Lucent France works with people all over the world.

• Amazon Web Services, Inc. (Washington, United States)

Amazon Web Services, Inc. provides information technology services. The Company offers website hosting, backup, digital marketing, analytics, application integration, blockchain, networking, and other related services. Amazon Web Services serves clients worldwide.

• Atos (Bezons, France)

Atos SE (Atos) is a company that offers IT services like business consulting, technology integration, and more. The company offers digital assurance services, consulting and technology services, systems integration services, and managed services. It also has information and data processing systems, data centers, and application management and implementation.

• Augmentt Technology Inc. (Ontario, Canada)

Augmentt is a SaaS Security Management platform for MSPs. It gives MSPs visibility across all end users so they can easily audit, protect, and find security threats in the Microsoft environment and manage SaaS.

• Bespin Global (Seoul, South Korea)

Bespin Global Inc. runs businesses that develop computer technology. The company offers services like integrating computer systems, moving to the cloud, managing the cloud, and more. South Korea is where Bespin Global does business.

• Capgemini SE (Paris, France)

Capgemini offers services in information technology. The company offers services like mobile software solutions, business process management, outsourcing, cloud computing, finance, consulting, supply chain management, engineering, and more. Capgemini works with industries all over the world, including aerospace, defense, automotive, health care, life sciences, telecom, media, and entertainment.

• Cisco Systems Inc. (California, United States)

Cisco helps people make strong connections in business, education, philanthropy, and creativity. Cisco's hardware, software, and services are used to make the Internet solutions that make networks possible and make it easy to get information from anywhere, at any time. In 1984, a small group of computer scientists from Stanford University got together to start Cisco.

• Cloudticity, LLC (Washington, United States)

Cloudticity is a digital enablement partner for the healthcare industry. By unlocking the full potential of the cloud, it helps improve business and clinical outcomes that can be measured. Cloudticity's solutions give healthcare organizations the tools they need to create and scale the next generation of healthcare solutions. This is made possible by automation that breaks new ground and a deep understanding of the cloud.

• Cognizant Technology Solutions Corporation (New Jersey, United States)

Cognizant Technology Solutions Corp (CTS) offers services in information technology (IT), consulting, and business process outsourcing (BPO). The company offers artificial intelligence, digital engineering, digital experience, digital strategy, the Internet of Things, enterprise services, industry and platform solutions, intelligent process automation, application services, cloud enablement, infrastructure services, security services, core modernization, enterprise application services, and quality engineering and assurance.

• Deloitte Touche Tohmatsu Limited (London, United Kingdom)

Deloitte Touche Tohmatsu Ltd (DTTL) offers audit, tax, consulting, risk management, financial advisory, and other services and solutions through its member firms. Its list of services includes audits of financial statements, advice on accounting, assurance services, resource planning, outsourcing, and solutions for actuarial and insurance issues. It also offers global employer services, business tax, transfer pricing, mergers and acquisitions, global investment and innovation incentives, indirect tax, international tax, and tax management consulting services.

• DLT Solutions (Virginia, United States)

DLT Solutions, LLC offers services in the field of information technology. The company provides services like cloud computing, data center consolidation, project management, digital design, and security. DLT Solutions works with schools, transportation companies, utility companies, and government agencies. DLT Solutions does business in the U.S.

Segmentation Analysis:

By Service Type:

Based on the type of service, the cloud managed services market is divided into managed business services, managed network services, managed infrastructure services, managed security services, managed mobility services, and managed communication and collaboration services.

In 2019, most of the market was made up of managed network services. This segment is growing because more and more businesses are using cloud managed services to manage network-related services and the management and administration of their networks. Cloud-based network managed services give companies everything they need to set up and manage remote data networks, such as WAN, LAN, and WLAN. Also, the use of these services has grown by leaps and bounds in recent years because they can be used for so many things. For example, they can be used to set up high-quality network solutions, manage and monitor IT networks, maintain equipment and ICT systems, and more.

During the time frame of the forecast, the managed security services segment is expected to grow at a high CAGR. The main reason for the growth of this segment is that businesses are using security services more and more. Managed security service providers (MSSPs) offer services like security management, responding to incidents, and more. So, more people are likely to use these services over the next few years.

• Managed Business Services
• Managed Network Services
• Managed Infrastructure Services
• Managed Security Services
• Managed Mobility Services
• Managed Communication and Collaboration Services

By Deployment:

The market is divided into workload security, network security, platform security, application security, end-point security, and others based on how they are used.

In 2019, most of the market was made up of cloud managed services on private cloud. The private cloud has many benefits for businesses, such as more control and better data security. This model also helps businesses save money and stay stable, among other things. A private cloud can help a company tailor its resources to meet its own IT needs. Most governments, banks, and other medium- to large-sized organizations with business-critical activities that want to improve operational protection use these systems.

During the period of the forecast, the public cloud segment is expected to grow at the fastest rate. People are using the public cloud more and more because it has efficient computing resources and the ability to virtualize.

• Public Cloud
• Private Cloud

By Enterprise Type:

The cloud managed services market is split into large enterprises and small and medium enterprises based on the size of the business (SMEs).

During the time frame of the forecast, it is expected that the largest share will be held by the large enterprise segment. Large companies can save money on IT costs by using cloud-managed services. The pay-as-you-go model is used to build these facilities. By taking care of operational tasks and data needs, these services also help large companies reach their efficiency goals. They also make service better in terms of being flexible, connected, and honest.

During the forecast period, the SME segment is expected to grow at the fastest rate. SMEs will be more likely to use these services as their need to cut down on operating costs and streamline business processes grows.

• SMEs
• Large Enterprises

By Industry Vertical:

Vertical divides the market into Banking, Financial Services, and Insurance (BFSI), IT and Telecommunications, Government and Public Sector, Healthcare and Life Sciences, Retail and Consumer Goods, Manufacturing, and Others.

IT and telecom companies are quickly adopting cloud managed services to better maintain their services across a wide range of applications. By moving to the cloud, internal computing needs will be cut down and extra costs will go down. IT and telecom companies were also among the first to use useful technologies like Bring Your Own Device (BYOD), Machine Learning, and others, which has helped the market grow even more.

In the healthcare field, the demand for cloud-based services is growing because infrastructure is changing. In the past few years, a lot of data were made because of research and health care activities. Expertise in the cloud was needed to manage these data, so healthcare providers are using services that are managed in the cloud. Cloud-based platforms help businesses focus on their most important tasks.

• Banking, Financial Services, and Insurance (BFSI)
• IT and Telecommunications
• Government and Public Sector
• Healthcare and Life Sciences
• Retail and Consumer Goods
• Manufacturing
• Others 

Regional Insights:

North America is expected to have the biggest market share for cloud managed services. Most of the market growth in this area is due to improvements in technology and infrastructure. Major players in the area are also making changes to the market.

The most cloud managed services will be on the market in Europe. The market is growing because more people want new technologies and the infrastructure that supports them is getting better. Businesses like Verizon Communications, NTT DATA Services, and many others are helping the markets in European countries grow.

During the time frame of the forecast, the market for cloud-based managed services in Asia-Pacific will also grow quickly. Most of the growth will happen in the Asia-Pacific area, where cloud services are becoming more popular. Because of this, as development keeps growing, the market will eventually do well in the years to come.

The rest of the world includes Africa and the Middle East. These countries will grow less quickly than others around the world. There aren't enough new technologies, and people don't know enough about them, so the market won't grow any more. Overall, there are a lot of things that will cause the cloud managed services market in these places to grow a lot.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The report's scope includes a detailed look at the Global Cloud Managed Services Market in different parts of the world.
• The report talks about the outlook for competition, including the market share and company profiles of the major players in the Global Cloud Managed Services Market.
• The market research comes with information about the main things that drive, stop, or create opportunities in the market.