Cloud Managed Services Market Size

Cloud Managed Services Market

Cloud Managed Services Market size was valued at USD 107.1 billion in 2023 and is projected to register a CAGR of 14% from 2024 to 2032. The integration of AI, machine learning, and automation within cloud services is a significant growth driver for the market.

AI and machine learning facilitate advanced analytics, natural language processing, and image and video analysis. These technologies offer deeper insights and enhance decision-making processes. These services allow businesses to build, train, and deploy machine learning models at a larger scale, eliminating the need for extensive in-house expertise or infrastructure. In addition, automation tools streamline operations by handling repetitive and manual tasks, while serverless computing platforms manage server resources automatically, thus optimizing utilization and reducing manual intervention.

div class="print-table"> 

Moreover, the adoption of cloud managed services leads to substantial reductions in operational costs for organizations. Migrating to the cloud reduces the need for expensive physical infrastructure and data center maintenance. Further, these services offer scalable and flexible solutions, allowing businesses to access benefits for the pay-per-use model and avoid the costs of over-provisioning. Additionally, major cloud services offering companies are collaborating to scale up their offering to support advanced IT solutions.

For instance, in August 2023, Kyndryl announced an expanded partnership with VMware as a VMware Cross-Cloud Managed Services Provider. This collaboration supports developing VMware Managed Services Specialization and offering Validated Service Offerings (VSO) for VMware Cloud on AWS. These services are aimed at scaling up customers' IT modernization. By providing consistent VMware Cloud environments across on-premises data centers and AWS, Kyndryl aims to reduce the total cost of ownership, simplify operations, and accelerate cloud migrations.
 

The market holds significant promise for the future. However, navigating the complex regulatory landscape and ensuring robust security measures to protect sensitive data in the cloud are some of the major challenges for the market players. Moreover, organizations must comply with a myriad of regulations that vary across regions and industries, which can complicate cloud adoption and management.  Further, safeguarding sensitive data in the cloud requires advanced security protocols and continuous monitoring to prevent breaches and unauthorized access. All these factors restrict the adoption of cloud managed services and hamper market growth.