The Global Managed Cloud Services Market is at the inflection point of growth and is one of the boomers in the Cloud Computing Industry. It is poised for burgeoning growth to reach a Market Size of USD 88.85 Bn in 2026 driven by factors such as Increase in adoption of cloud in SMEs, Customer Acceptance of Cloud Approach to Smoothen IT Operations, Burgeoning Need for Handling Critical IT Systems & Business Applications and Rise in cloud services adoption in developing regions.
- Definition / Scope
- Market Overview
- Top Market Opportunities
- Market Risks
- Market Drivers
- Market Restraints
- Industry Challenges
- Technology Trends
- Pricing Trends
- Regulatory Trends
- Post COVID-19 Recovery
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
- Further Reading
Definition / Scope
Cloud managed services are expert services that expand IT infrastructure and in-house functionality and are managed in collaboration with third-party managed providers via cloud platforms. Managed security operations, managed network operations, managed applications, and mobility are all included in these services. Cloud managed services also allow businesses to expand their capabilities and replace procedures and tasks that have high recurrent expenses. Apart from that, these services aid in the reduction of recurrent IT costs, the automation of business processes, and the transformation of IT systems, as well as assisting firms in achieving their organizational goals.
Due to advancements in cloud computing, the Managed Cloud Services industry has seen significant expansion in recent years. Cloud migrations can assist businesses in achieving faster business results. It might be difficult to manage and scale your mission-critical apps and underlying technology layer to the Cloud. You can assign the task of full cloud management and support to a Cloud Managed Service Provider with the Cloud Managed Services offering (MSPs). Cloud MSPs provide experienced resources to supplement in-house capabilities and IT infrastructure, which is maintained in conjunction with a third-party service provider.
Managed Cloud Service Provider helps to:
- Seamlessly manage the cloud environment
- Enhance agility
- Gain superior outcomes and rapid ROI
- Manage multi-cloud and/or hybrid cloud environment
- Boost time-to-market
- Ensure data safety and recovery
- Reduce disruptions and improve IT stability
The cloud managed services market was worth USD 42.31 billion in 2021 and is predicted to grow to USD 88.85 billion by 2026, with a CAGR of 16% between 2022 and 2026. The demand for cloud managed services is expected to rise as firms seek to reduce operational and infrastructure expenses associated with business processes. Outsourcing cloud services to a third-party allows businesses to concentrate on their core capabilities, increasing overall productivity. The growing use of big data has increased the demand for managed analytical services and cloud storage. Furthermore, the growing requirement for reliability and scalability may drive up demand for these services, as they will allow businesses to scale up and down their operations by giving custom-made offers to the available services.
The need for cloud-based managed security services is expected to rise 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. Around 67 percent of the workforce is predicted to use their own devices for work, which might help the cloud managed services industry grow even faster. Concerns about cloud privacy, on the other hand, are expected to stymie the market’s expansion.
The increased adoption of cloud services by businesses all over the world has fueled the growth of cloud managed services. Small and medium businesses have emerged as the most potential consumers of cloud services, thanks to increased flexibility and the advent of a “pay as you go” approach. As a result of the growing usage of cloud services, the cloud managed services market is expected to rise rapidly.
The Major Risk for the Global Managed Cloud Services Provider Market is
The Managed Cloud Services Market is largely fragmented, with a number of conglomerates and medium-sized and small start-up companies accounting for the majority of global market share. Lower entry barriers, a lack of economies of scale, and fierce market competition are all factors contributing to the Global Managed Cloud Services Provider industry fragmentation. Businesses with lower margins and higher costs will benefit from a fragmented market. When interacting with other countries, they also lack the benefit of size.
Top Market Opportunities
The Prime Opportunities for the Market Players in the Global Managed Cloud services Provider Market include
Growth in anything-as-a-service technologies
Anything-as-a-Service is referred to as XaaS. Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) are the three pillars of cloud computing, and they offer a wide range of services. End users are recognizing the benefits of XaaS and cloud computing, therefore it is increasing at a quicker rate than cloud computing. Various technologies, such as network-as-a-service and IoT-as-a-service, are even being used as managed services by businesses. MSPs can readily deliver these services since they have the necessary infrastructure and experience. On a pay-per-use basis, companies can integrate these services into their main business processes. As a result, they can make the best use of their IT budgets. The primary benefit is the move from Capital Expenditure (CAPEX) to Operational Expenditure (OPEX), which lowers Total Cost of Ownership (TCO). Latest software updates can also be deployed easily over the cloud for these cloud managed services.
Internet of Things (IoT) development services
Smart technologies are the way of the future. They’re ubiquitous, and they’re transforming the way we live. Smart technologies are here to stay, from smart digital assistants and chatbots to fitness and sleep trackers.
The development of these smart technologies leads to an increase in the number of linked devices around the world, resulting in the concept of the internet of things.
According to research, there will be 35 billion smart gadgets online by 2021, with that figure increasing to 75 billion by 2025. Applications, devices, connectivity, and security are all part of the Internet of Things, and they all require administration.
MSPs can assist with practically every aspect of IoT deployment. This involves everything from network planning to purchasing hardware, software, and architectures, as well as network management. MSPs will need to redefine and re-strategize their procedures and operations in order to handle a full IoT environment.
For you, the growing demand for IoT devices and implementations is a fantastic opportunity. MSPs must properly configure every piece of data saved in the devices. This covers the processing and analysis of these enormous data sets.
Digital business infrastructure solutions
Digitalization is now more vital than it has ever been for businesses. The physical and digital worlds are gradually merging thanks to digital technologies. It’s all about creating value through digital touchpoints to improve the customer experience.
A digital touchpoint is described as the environment in which end-users interact directly with a digital business’s services. Virtual assistants, augmented/virtual reality technology, smartphone apps, wearables, ATMs, robotic arms, and more examples are possible.
Core operations, security operations, network operations, and edge operations are the four service lines identified by Gartner for digital business infrastructure operations (DBIO).
While it may appear that managing a client’s internal IT system and managing their digital business are the same thing, they are not. The latter, i.e., digital business management, is outcome-driven and generates revenue.
As a result, firms are looking to change into digital businesses as soon as possible, and they are requesting assistance from MSPs.
By 2023, digital business infrastructure operations will generate revenue for 63 percent of worldwide managed service providers (MSPs) (DBIO).
The Major Factors driving the growth of the Global Managed Cloud Services Market include
Increase in adoption of cloud in SMEs
Entrepreneurs and their small and medium businesses have exploded in popularity over the last few decades. Cloud computing services are in high demand due to the benefits they provide, such as cost savings and company flexibility, which proves to be a blessing to small enterprises. Because of the expansion of these small and medium businesses, the need for cloud computing services is increasing.
According to a survey done by Microsoft Corporation, small and medium companies contributed roughly 76 percent to the economy of any country. Another interesting finding was that 79 percent of entrepreneurs thought that technology could make their work enjoyable. To grow their operations and leave their footprints in many countries, most IT enterprises in SMBs require powerful cloud computing technology.
Customer Acceptance of Cloud Approach to Smoothen IT Operations
Managed cloud services will be at the forefront of all technologies as businesses formulate plans to meet their IT and network needs. Accounting, finance, customer relationship management, and other IT applications are all being operated on cloud servers by businesses. The global condition of cloud adoption is changing due to the increased adoption of cloud technologies to deploy and manage company operations. For example, in preparation for Black Friday in 2017, Betabrand, a clothing firm based in the United States, switched its operations on Google Cloud infrastructure Kubernetes. The organization was able to handle peak demands with ease after this transfer.
As a result of enterprises’ shift to cloud infrastructure, cloud-managed services are projected to see a significant increase in demand. Leading suppliers have established end-to-end service portfolios that satisfy company demands and provide higher customer value, recognizing that the cloud distribution model is more than just cost-cutting. The cloud can be a helpful model for firms to conduct business functions efficiently, especially with the common goal of ensuring technology up-gradation with cloud technology.
Companies are increasingly relying on cloud-based management services to manage their business in response to increased demands to incorporate new technologies and improve application performance and costs. As a result of the growing adoption of cloud solutions by organizations, the demand for these services has increased.
Burgeoning Need for Handling Critical IT Systems & Business Applications
The demand on the risk and compliance model has increased as enterprises and financial firms navigate today’s volatile economic and regulatory landscape. Companies looking to better their organization, operation, and security by providing more strategic answers are increasingly turning to managed services. Companies benefit from cloud managed services since they allow them to eliminate complicated system integration services and construct a well-developed solution that ensures cloud scalability and economics. Keeping a full-time IT team on hand to administer cloud services is too expensive for most small and medium-sized organizations. As a result, outsourcing these services allows organizations to maintain control over their network maintenance expenditures while maintaining security and efficiency.
Furthermore, cloud services offer various advantages over traditional services, including centralized applications and network services, the ability to establish storage and backup, and the ability to handle all network management layers. As a result, the use of cloud-managed services is increasing, and businesses are discovering that it is feasible to achieve business success.
Rise in cloud services adoption in Emerging markets
The cloud computing services market would see a lot of growth in developing economies like India, China, Brazil, and Africa. These countries are on the verge of development, yet they lack financial resources, necessitating cost-effective solutions. In this circumstance, they may be able to save money on IT costs by using cloud computing services. Small and large businesses alike are transitioning to advanced technologies, including cloud computing services, to thrive in the future, thanks to the diverse applications of cloud computing services. During the cloud services market prediction, the battle of developing economies to obtain an advantage in the globe is operating as an opportunity.
The Primary Factors Restraining the growth of the Global Managed Cloud Services Provider Market are
Data security and privacy Issues
The usage of cloud managed services necessitates the outsourcing of various third parties’ skills, which can raise security and confidentiality risks. Mobility, networks, endpoints, databases, cloud, web applications, and virtualization infrastructures are all included. Any cloud MSP can easily expose sensitive corporate details as a result of this. As a result, security and privacy issues remain the top barriers to enterprises adopting cloud managed services. MSPs, on the other hand, assist enterprises in ensuring that the data they distribute via the cloud is secure and private. Customers have access to end-to-end network protection and encryption for added security. However, because of the increasing number of data breaches, businesses are hesitant to share important business information with MSPs.
Lack of Integrated Workforce Management and Data Management Limitations
The scarcity of IT and cybersecurity professionals is a major stumbling block to the market’s expansion. This flaw will prevent businesses from meeting their IT security requirements. A company’s lack of IT and cybersecurity expertise can allow hackers and viruses to penetrate the IT ecosystem, causing valuable data and resources to be lost. For example, in September 2019, AutoClerk Inc., a large property management system provider, experienced a security breach in its Elasticsearch database, resulting in the loss of 179 GB of data, including the travel plans of thousands of US government and Department of Homeland Security employees (DHS).
As a result, for the adoption of managed cloud services, effective cybersecurity measures are essential. Furthermore, one of the major issues impeding the market’s growth is the high cost of these services, as well as data privacy and security concerns.
The Key Challenges for Market Players in the Global Managed Cloud Services Provider Market are
Cloud invoices and multiple accounts
It’s not always easy to comprehend and analyze cloud invoicing. The billing system is almost completely unclear. Multi-cloud services bring together a variety of systems and services under one roof. If not properly managed, consolidating, maintaining, and monitoring the usage of statistics for invoicing can be a significant difficulty. Many times, the billing from the initial cloud providers does not match the invoicing from MSPs, causing consumers to be irritated and negatively impacting the relationship. Furthermore, with a hybrid cloud setup, billing becomes more problematic. SaaS is normally charged on a monthly basis, but IaaS resource utilization is charged on a per-use basis. Customers want to know how much they’ve consumed. Customers will abandon services if MSPs do not give a well-structured and straightforward billing system.
Dangers Posed by Data Breaches to Impede Market Growth
The persistent threat of data breach and hacking offered by cyber-criminals is one of the key concerns surrounding the adoption of cloud-based services and solutions. With the rising use of digital technologies in people’s lives, cyber-attacks have expanded in scope and intensity in recent years. For instance, in July 2021, Capital One, one of the country’s leading financial institutions, suffered a catastrophic cyber-attack on its cloud computing infrastructure, exposing the personal information of 160 million credit card users.
In the same month, PCM, a cloud service provider, was hacked several times, resulting in the misuse of clearinghouses, money transfer services, and payment processing services. In April 2021, the National Electoral Institute of Mexico’s over 93 million voter registration records, which were housed on an unlawful Amazon cloud server, were breached in another large-scale hacking incident. Such incidents may dissuade enterprises and governments from fully embracing the cloud, hampering the growth of the cloud managed services market.
Technology is re-shaping the Global Managed Cloud Services Market, some of the major technology trends are
IoT and Blockchain
According to IoT Analytics, the number of linked devices is predicted to increase to 10 billion by 2020 and 22 billion by 2025. Businesses, on the other hand, require a broad set of abilities in order to take use of the two technologies. Hiring or having to learn a lot about these new technologies is both time consuming and inefficient.
With this survey confirming IoT as the most talked-about technology, it’s safe to predict that MSPs will play a critical role in assisting businesses in adopting innovative technologies in order to stay market-relevant in the future. Furthermore, with the help of a managed service provider, businesses can discover knowledge gaps in order to improve their cloud strategy across all key business functions.
Businesses are now experimenting with new and emerging technologies in order to improve the efficiency and effectiveness of their day-to-day operations. However, embracing those technologies requires not just the proper abilities, but also the financial means to do so – both in terms of hardware and software.
That’s where you’ll find infrastructure-as-a-service (IaaS) from a new-age cloud managed services provider. The service model provides an outsourced computer infrastructure to support corporate activities. A managed service provider will often offer the necessary hardware, software, storage, servers, network components, and a data center as part of the concept.
Businesses will benefit from the subscription-based billing model of IaaS in terms of scalability, cost, and security.
The Price of Managed Cloud Services depends on the following factors
- Number of Cores
- SSD Storage offered and
For Instance, the smallest server starts at US$ 12/month with the following features
|1 CPU Core||1GB RAM||10 GB SSD Storage||1TB Bandwidth|
The Global Managed Cloud Services Provider Market is regulated based on the region, some of the regulations are
Regulation in the USA
In USA, the Managed Cloud Services is regulated by the Cloud Act (Clarifying Lawful Overseas Use of Data Act).
On March 23, 2018, the Clarifying Lawful Overseas Use of Data Act (CLOUD Act) (H.R. 4943) was signed into law. The CLOUD Act changes the Kept Communications Act of 1986 (SCA) to empower federal law enforcement to compel US-based technology businesses to deliver requested data hosted on servers by warrant or subpoena, regardless of whether the data is stored in the US or abroad.
Regulation in the Europe
The General Data Protection Rule (EU) 2016/679 (GDPR) is a European Union (EU) and European Economic Area (EEA) regulation on data protection and privacy (EEA). The GDPR is an important part of EU privacy and human rights law, particularly Article 8(1) of the European Union’s Charter of Fundamental Rights. It also handles personal data transfers outside of the EU and EEA. The GDPR’s main goal is to give people more control and rights over their personal data while also making the regulatory environment for foreign businesses easier to navigate.
Regulation in China
Before the Ministry of Industry and Information Technology issued the Circular of the Ministry of Industry and Information Technology on Issuing the “Classified Catalogue of Telecommunications Services” 2015 (2015 Telecoms Catalogue, with effect from 1 March 2016), there were no specific laws and regulations governing cloud computing services in China (MIIT). Although the 2015 Telecoms Catalogue does not define “computing” or “cloud service,” the term “internet resource co-ordination services” is widely used (IRCS)
Regulation in India
In India, there is currently no overarching law governing the provision of cloud services. To deliver cloud services, a local license is not required. On a cross-border basis, cloud services can be delivered in India. To deliver cloud services to consumers in India, a foreign cloud service provider does not need to establish a local corporation, obtain any operational licenses, or hire local personnel, among other things. In addition, there are no restrictions on foreign investment in cloud operations in India.
A locally established cloud service provider would be subject to Indian law in terms of corporate concerns, taxation, and labor, among other things. These licenses/compliances are related to Indian firms’ day-to-day activities, not to the provision of cloud services particularly. Furthermore, even an overseas cloud services provider must comply with data privacy and access regulations.
Post COVID-19 Recovery
The cloud services market is expected to increase at a CAGR of 15.8 percent after COVID-19, from $374,770 million in 2020 to $1,620,597 million in 2030. The market prediction for cloud services in 2030 is expected to be greater than pre-COVID-19 estimates. The COVID-19 epidemic has sped up the growth of the cloud services business, thanks to increased demand for the cloud to serve a variety of critical digital solutions including e-commerce and remote work, as well as entertainment platforms like online gaming and video streaming.
Furthermore, throughout the epidemic, cloud service companies’ revenues grew at a breakneck pace. For example, in the fourth quarter of 2020, Amazon Web Services Inc. produced revenue of $12.74 billion, up 28 percent year over year. In the third quarter of 2020, Amazon Web Services’ competitor, Microsoft Corporation’s Azure, also gained traction. During the pandemic, these factors contributed to an increase in market size.
Market Size and Forecast
The cloud managed services market was worth USD 42.31 billion in 2021 and is predicted to grow to USD 88.85 billion by 2026, with a CAGR of 16% between 2022 and 2026.
Speedy Adoption of Cloud Services to Accelerate Market Growth in North America
North America dominated the cloud managed services market share in 2021, with a value of USD 16.29 billion, and is predicted to maintain this position throughout the forecast period. The fast adoption of managed cloud services by firms in the region to reduce operational expenses and compensate for a scarcity of highly experienced IT experts is the key growth driver for the regional market.
The digitalization of corporate operations and significant expenditures in cloud infrastructure strengthening will be the two key reasons driving regional market expansion in Europe. The market in Asia Pacific, on the other hand, is expected to expand rapidly due to the growing use of cloud services by small and medium-sized businesses in the region. Furthermore, increased government use of cloud solutions in the region is likely to support the regional market’s long-term growth.
Managed Infrastructure services segment is estimated to have the largest market size during the forecast period
Data center hosting, colocation, or a cloud-based Data Center as a Service (DCaaS) platform are all options for managed infrastructure. Managed infrastructure services assist businesses cut costs associated with cooling and electricity usage, as well as simplify resource and data administration. MSPs provide full hosting services, including secure hosting of web or other application servers as well as associated internet access.
Banking, Financial services and Insurance vertical is expected to hold a higher market share
Users benefit from more flexible options, simplified banking, and a more favorable customer experience thanks to the cloud-managed service. Because the BFSI industry is so client-centric, improving customer experiences is a top focus. MSPs ensure that modification is done according to the client’s needs, which can improve the core business’s overall functionality. Banks benefit from outsourcing since it allows them to save expenses and increase efficiency. It also allows for a stronger focus on core skills, risk minimization, better customer interactions, and regulatory compliance.
During the projection period, the BFSI sector, which was a pioneer in the adoption of computer and networking technologies to reduce huge, space-intensive repositories and databases, is likely to have a significant proportion of the cloud managed services market. By evaluating transactional data to establish risks based on market activity, grading customers, and future clients, the BFSI industry effectively assesses risks, enabling enterprises to make educated decisions. Banks like BNY Mellon, Morgan Stanley, Bank of America, Credit Suisse, and PNC are already developing big data strategies in banking, which will help cloud managed services grow even faster.
Furthermore, several banks, such as Thai Bank, Krungsri, are forming strategic partnerships to upgrade their IT infrastructure so that it can accommodate digital banking. The bank has signed a five-year, USD 140 million deal with IBM for digital transformation, which will include managed services, boosting demand for this sector.
The cloud managed services market was worth USD 42.31 billion in 2021 and is predicted to grow to USD 88.85 billion by 2026, with a CAGR of 16% between 2022 and 2026.
The adoption of mobile devices will drive the mobility services segment’s growth rate.
During the anticipated period, private cloud deployment will be driven by increased security and service levels, with a CAGR of 16 percent expected.
Adoption in small and medium businesses will be fueled by customization and lower IT expenses.
The growth of the healthcare segment in the market will be fueled by rising levels of data security.
Increased cloud technology investment by nations like China and India would propel the Asia Pacific regional market growth rate.
Cisco Systems Inc., IBM, Verizon Communications Inc., Ericsson, and NTT Data Corporation are among the key industry players.
Cloud technology is already being utilized to create new platforms to help businesses better their digital transformation. However, most businesses find it difficult to use a multi-cloud environment to improve consumer interaction due to a lack of skills and infrastructure. With consumption-based pricing structures and fast and economical scaling, a cloud managed services provider can help such organizations integrate technology into their processes.
Simultaneously, automation is being implemented in the IT industry. Removing superfluous and repetitive chores from teams’ to-do lists has helped them become more efficient and do more work in less time. However, each company’s automation requirements are unique. This is where a managed services provider can help by providing and implementing custom automation across various business processes.
As previously said, company executives have realized that in-house expertise is no longer adequate to meet shifting industry demands. As a result, managed IT service providers are shifting away from traditional SLAs (service-level agreements) to a continuous focus on customer and staff satisfaction.
Because of the vast number of market players, both large and small, the cloud managed services industry is fragmented and intensely competitive. This market has been characterized by strategic endeavors such as collaborations, agreements, and acquisitions. Ericsson Inc., Accenture plc, International Business Machines Corporation, Huawei Technologies Co., Ltd., and NEC Corporation are some of the prominent companies in this sector.
Key Market Developments
In October 2021 – On 5G security, IBM and Palo Alto Networks worked. 5G has the potential to broaden telecom operators’ and customers’ attack surfaces. Higher data speeds, lower latency, and a functional redesign of mobile networks are all part of the 5G evolution, which will assist enable increased agility and efficiency.
In September 2021 – In order to help customers, accelerate their digital transformation, NEC increased its collaboration with AWS in areas such as global 5G and digital government. By merging NEC’s high-performance cloud-native open 5G mobile core, OSS/BSS solutions, local 5G use cases, and AWS cloud and edge solutions, NEC hopes to create an end-to-end 5G offering that will be available internationally.
In June 2021 – Accenture has introduced myNav Green Cloud Advisor to assist businesses in achieving their sustainability goals using the cloud. myNav Green Cloud Advisor assists businesses in developing cloud solutions that cut carbon emissions while also laying the groundwork for responsible innovation.
July 2020 – Lightstream, one of the leading companies in cloud security, partnered with CloudCheckr Inc. to launch the Lightstream CMS to enable companies to manage cloud infrastructure easily. This newly-launched solution provides a comprehensive suite of security and technical services that help companies to build secure cloud environments.
Because of the promising advances in sophisticated technologies, market-leading businesses such as Cisco Systems Inc., Telefonaktiebolaget LM Ericsson, IBM Corporation, Amazon Web Services, Inc., and others are developing unique solutions. Other firms, on the other hand, are forming strategic alliances with rivals in order to boost their market position and increase brand awareness. For Instance,
In 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.
Key Market Players
Some of the Key Global Managed Cloud Services Provider include
Amazon Web Services (AWS) provides a variety of computing, storage, database, analytics, machine learning, Internet of Things, cloud, and serverless computing services. It also offers services like advertising to retailers, vendors, publishers, authors, and others through programme including sponsored adverts, display advertising, and video advertising.
NTT DATA INTRAMART CORPORATION is a firm established in Japan that specializes in the creation and selling of bundled software for the building of Web system infrastructure. The business is divided into two areas. The Package division is responsible for the creation and selling of intra-mart software, as well as the supply of maintenance services to its corporate clients. The middleware IAP and intra-mart application series make up its intra-mart software. The Service section provides intra-mart Web system construction consultancy, as well as system development and educational services.
NEC Corporation is a Japanese business that specializes in system integration and network services. The business is divided into five segments. For public and medical institutions, governments, and media, the public segment provides system integration, support, outsourcing, and cloud services, as well as system equipment. The Enterprises division provides manufacturing, distribution, service, and financial industries with system integration, support, outsourcing, and cloud services. Network Infrastructures, System Integration, and Management Services are provided by the Network Services section.
Atos SE is a digital transformation firm established in France that specializes in cloud, big data and analytics, cybersecurity, high-performance computing, business applications, the digital workplace, automation, and the Internet of Things (IoT). The company creates high-end technologies and designs, integrates, and manages customer-specific solutions based on its partners’ technology. United Kingdom & Ireland, France, Germany, North America, Benelux & The Nordics, and Other Business Units are the six geographical segments through which it operates globally.
Rackspace Technology, Inc. is a multicloud technology services firm that provides end-to-end solutions. The company creates, installs, and manages cloud systems on a variety of platforms. Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud are the company’s three segments. Multicloud Services refers to the company’s multicloud services as well as professional services for planning and developing multicloud solutions and cloud-native apps. Its OpenStack Public Cloud section enables the use of open-source technology to execute applications on a public cloud. Through technologies like the RackConnect tool, it also enables public cloud and managed hosting platforms to function.
The Global Managed Cloud Services Market is at the inflection point of growth and is one of the boomers in the Cloud Computing Industry. It is poised for significant growth driven by factors such as Increase in adoption of cloud in SMEs, Customer Acceptance of Cloud Approach to Smoothen IT Operations, Burgeoning Need for Handling Critical IT Systems & Business Applications and Rise in cloud services adoption in developing regions.
The Global Managed Cloud Services Market is valued at USD 42.31 billion in 2021 and is predicted to grow to USD 88.85 billion by 2026, with a CAGR of 16% between 2022 and 2026. Though growth bottlenecks exist in the form of challenges such as Data security and privacy Issues, Lack of Integrated Workforce Management and Data Management Limitations, Cloud invoices and multiple accounts and Dangers Posed by Data Breaches to Impede Market Growth. There exist lucrative opportunities such as Growth in anything-as-a-service technologies, Internet of Things (IoT) development services, Digital business infrastructure solutions.
- MSP – Managed Service Provider
- SMEs – Small and Medium Enterprises
- SaaS – Software-as-a-Service
- IaaS – Infrastructure-as-a-Service
- IoT – Internet-of-Things
- BFSI – Banking, Financial Services and Insurance