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Cloud Managed Services Market Trends

Report ID: GMI10538
Published Date: Jul 2024
Report Format: PDF

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Cloud Managed Services Market Trends

A growing trend in cloud managed services is the adoption of consumption-based pricing, where businesses pay only for the resources they use. This shift offers greater cost transparency, allowing businesses to predict cloud expenses based on actual usage and eliminate the uncertainty of fixed-fee plans. In addition, it incentivizes resource optimization, leading to potential cost savings and reduced waste.

Moreover, this model provides flexibility and scalability, thus enabling businesses to adjust cloud resources to meet fluctuating workloads without the limitations of fixed-cost plans. Moreover, for service providers, consumption-based pricing ensures recurring revenue streams and fosters trust by reflecting actual usage and delivered value.

Additionally, key market players are launching new cloud-based services through strategic partnerships with other companies. These collaborations enable the integration of advanced technologies, providing comprehensive solutions that enhance performance, scalability, and flexibility for customers.

For instance, In January 2024, Cisco Systems and Hitachi Vantara launched Hitachi EverFlex with Cisco Powered Hybrid Cloud, a collaborative effort focused on cloud-managed services. This offering integrates Hitachi Vantara's XaaS portfolio, encompassing storage, data protection, and managed infrastructure services, with Cisco's networking and computing capabilities. It aims to deliver consistent operational experiences across on-premises and cloud environments, emphasizing a consumption-based pricing model for infrastructure capabilities.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of cloud managed services reached USD 107.1 billion in 2023 and is set to register 14% CAGR from 2024 to 2032, owing to the increasing integration of AI, machine learning, and automation within cloud services worldwide.

Cloud managed services industry from the public cloud segment held 52% share in 2023, due to its cost-effectiveness, scalability, and flexibility.

North America market accounted for 43% share in 2023, attributed to the presence of a large number of established cloud service providers offering advanced technologies and solutions in the region.

AT&T Inc., Cisco Systems, Inc., Fujitsu Limited, IBM Corporation, NTT Data Corporation, Rackspace Technology, Inc., Tata Consultancy Services Limited (TCS), Verizon Communications Inc., and Wipro Limited, are some of the major cloud managed services companies worldwide.