The global cloud managed services market is expected to reach USD 82.51 billion by 2025, according to a study conducted by Grand View Research, Inc. The need to focus on core business practices has increased the adoption of cloud managed services. The services include business services, network services, security services, data center services, and mobility services. These services enable organizations to reduce their operational costs and enhance their productivity by managing IT infrastructure and cloud.
In North America, the availability of advanced IT infrastructure is expected to drive the adoption of cloud managed services. The Asia Pacific and MEA regions are expected to witness considerable growth, as enterprises are shifting toward the cloud and prominent technology providers, such as IBM and Google, are making significant investments for the same.
However, issues regarding data privacy, data security, and poor connectivity may hamper the growth of the market. Furthermore, organizations are skeptical about data security over the cloud, and this may lead to slower adoption and hence, restrain the demand for cloud managed services. Thus, service providers are required to offer appropriate security features for gaining credence among organizations.
Further Key findings from the study suggest:
- Mobility services is expected to be the fastest-growing segment with a CAGR of over 19% over the forecast period, owing to increased adoption of mobile devices by organizations
- Private cloud deployment will increase with a CAGR of over 16% over the forecast period. This growth will be driven by private cloud deployment benefits such as high service level.
- Cloud managed services will have higher adoption in SMEs owing to customization and reduced IT costs
- Healthcare segment will have the highest growth rate over the forecast period owing to enhanced data security
- Asia Pacific will be the fastest-growing regional market over the forecast period due to increasing investments in growing economies such as India and China
- The prominent industry participants operating in the market include IBM, Cisco Systems Inc, Ericsson, Verizon Communications Inc, and NTT Data Corporation