Managed Services Market

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Introduction of emerging technologies such as cloud platform and connected mobile devices offer various opportunities as well as challenges for the enterprises. The rapid change of pace in the IT industry is unprecedented. IT departments across enterprises of every industry vertical can no longer standardize on one or two computer models, a single operating system, or a list of applications. The introduction of connected devices and cloud-based technologies have paved the way for many opportunities as well as increased the complexity for IT departments to manage and secure devices, platforms, and applications, which has added up to significant expenses. In order to be at par with the evolving technology, organizations turn to managed service providers (MSPs) to acquire assistance for handling the cloud deployments, security, data center solutions, mobile initiatives, and collaboration tools. Increasing need among enterprises to reduce the cost of enterprise infrastructure and improve the business processes efficiency and reliability is driving the growth of the global managed services market. Moreover, advancements in IoT and 5G technologies are expected to offer various opportunities for the market vendors in the coming years. However, increasing need for regulatory compliance across different regions is expected to limit the market growth and complexities associated with the migration of existing IT infrastructure to cloud is the major challenge faced by the market players.

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Managed service providers help the enterprises to offset the initial investment in technology by offering services related to network testing, cloud, managed data center, security, and mobility. After switching to an MSP, enterprises only pay for the service on a monthly basis instead of spending heavily on hardware and software. As the managed services incur operational expenses instead of capital expenditure, minimal resources are tied up to manage the advanced technology adopted by businesses. Furthermore, the software updates and renewal are also included in the service and do not incur additional charges in case of any updates. Managed service providers take control of the entire IT infrastructure, which enables the enterprise to reduce the cost by using the MSP’s data centers. This helps the enterprise to not only save on the cost of IT hardware but also the energy consumed, and the space required for the setup. Additionally, MSPs offer savings related to licensing, training, and consulting by covering all the needs under a one-time or monthly investment; these services are also streamlined and better managed via a single provider. Managed services provide visibility to the organization and help to know exactly what to budget and what services the client is going to receive, allowing organizations to be more flexible while investing in other areas of the business. The reduction in infrastructure cost elevates the demand for MSPs in organizations across industries. A study revealed that organizations saved approximately USD146,801 per 100 users every year on infrastructure costs.

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} IoT and 5G technologies are disrupting every industry vertical to offer various benefits. The IoT technology provides MSPs a possible way to integrate various new services to their existing offerings. The technology provides opportunities for MSPs to enhance their service interactions, provide better support, reduce operational overhead, maximize operational efficiency, and gain information related to the users and their behaviors of specific devices and services. IoT platform extends the IT service management solutions for enterprises of all sizes. A study shows that by 2020, the number of connected devices will be approximately 50 billion. As the number of connected devices increases, the demand for managed services also increases which is expected to drive the growth of the managed services market. A properly managed service is required across each layer of the IoT ecosystem to enable efficient and smooth operation of the system. IoT managed services allow businesses to take a proactive approach towards operations and maintenance of the machines and predict potential faults in the machine to avoid sudden breakdown and failures resulting in process downtime.

The introduction of 5G also offers enormous opportunities for managed services as it is expected to offer high-speed connectivity with reduced network latency. MSPs will have considerable opportunities to assist companies with the collection, transmission, and management of high volumes of data generated through the network. The 5G technology brings a service-based architecture with IT-centric cloud services, and new ability to personalize network layers to match the specific requirements of various industrial applications and customer segments. The MSP offers services to meet this unique set of requirements of each operator, in terms of cost-efficiency, service performance, or technology evolution to provide an enhanced user experience which is expected to elevate the demand for managed services with advances in 5G technology.

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Information security compliance is an operational as well as legal concern for organizations of all sizes operating across various industries. With the growing dependence on IT, the value of information assets has increased significantly which requires a strong control compliance framework. Also, consumers have become increasingly aware of who is accessing, receiving, processing, collecting, and storing their personal data. Furthermore, the compliance regulations can be challenging to manage while migrating to the cloud. The IT teams can get burdened with migration tasks, which may lead to negligence of compliance-related tasks. As a result, regulatory activities have been ramping up around the world to protect consumer privacy.

The General Data Protection Regulation (GDPR) was introduced by the European Parliament and Council in May 2018 with an effort to standardize data protection requirements across the region by empowering consumers to take control of their personal data. The Consumer Privacy Act of 2018 was passed by the State Government of California in order to mitigate concerns regarding corporate data-sharing practices. Other countries such as Brazil and India are also presenting their own revised data protection regulations following the GDPR. Brazil’s General Data Privacy Law passed in August 2018 offers GDPR as per the scope and rules for data processing. Similarly, India’s Personal Data Protection Bill, which was proposed in July 2018, appeals for a comprehensive data protection law which will regulate data processing and safeguard Indian consumer data. The complexity of cross-jurisdictional regulations varies across different countries within the same region. For instance, the Asia-Pacific region has approximately 40 regulatory bodies, each with slightly varied rules and requirements. The US states also differ in terms of data privacy and IT security compliance laws. This makes it difficult for the MSPs to keep up with information security and data privacy regulations. Following the cross-border regulatory requirements is extremely challenging. In an era of hyper-regulatory scrutiny, MSPs find themselves in a constant conflict between regulatory deadlines and the risk of non-compliance. The increasing need to meet the regulatory compliance obligations with minimal budgets and resources has restricted the data control by the MSPs which is expected to limit the market growth. However, by investing more in order to meet the compliance, MSPs can offer their services as per the regulatory policies of each region.

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Over the years, MSPs have successfully built businesses by hosting a computing infrastructure for their clients. However, the sudden interest in the cloud is potentially disruptive and challenging the growth of the market. Owing to the scalable, flexible, mobile, and cost-effective features offered by the cloud, the SMEs, as well as large enterprises, are rapidly replacing their on-premise technologies with cloud-first and cloud-only technologies. A study shows that the global cloud adoption market is expected to be valued at USD500 billion by 2020. In order to take advantage of this opportunity, MSPs are incorporating cloud MSP model into their service portfolio. A cloud MSP offers guidance to the customers helping them to understand the cloud, explaining them what services to avail as per the end-use application. However, a majority of MSPs face integration issues during implementation. Adapting workloads for the cloud, supporting operational lifecycles, and at the same time maintaining a stable infrastructure requires extensive training and collaboration between the MSPs and clients. Combination of managed services with unified enterprise management solutions offers a high degree of customization and seamless implementation capabilities, which enhances the cloud onboarding experience. Furthermore, the adoption of hybrid cloud has also been witnessed in the coming years. A research study shows that the demand for hybrid cloud is increasing owing to the combined benefits of public as well as private cloud offered to the customers. Multi-cloud services bring multiple systems and services on a single platform. Monitoring, consolidation, and managing these systems and services have become a challenge for MSPs. Maintaining transparency while updating user changes, resource management, deployment, and coordinating invoices are some of the major challenges which can be resolved only by resourceful managed IT service providers.