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Monday, 25 April 2016

Technavio predicts bright future for cloud managed services

Technavio estimates that the global cloud-based managed services market will grow at a CAGR of around 20% between 2016 and 2020. With the upsurge in cloud computing, IT organisations are shifting towards cloud-based managed service providers due to the low associated costs. Cloud managed services help organisations to reduce labour and training costs, improve IT service performance, and lower capital burden. 

“High demand for cloud-based mobility services is expected to spur market growth in the coming years. Of late, many enterprises have started choosing managed services over traditional services due to their added advantages. Managed services offer benefits like risk sharing and reduced IT cost for organisations. Outsourcing these solutions allows enterprises to concentrate more on their core competencies, which in turn allows enterprises to generate more revenue and increase operational efficiencies. Moreover, its ability to reduce CAPEX for enterprises and to free up internal resources for core business functions will lead to the high adoption of cloud-based mobility services during the predicted period,” says Amit Sharma, Lead Analyst, ICT, Technavio Research

The global cloud-based managed security services segment dominates this market and is expected to grow at a CAGR of over 19% by the end of the forecast period. With a rise in the use of mobile data security services, cloud-based security services have become an inseparable part of growing organisations. More organisations have become interested as they become comfortable with software-as-a-service applications.

The leading vendors in the global cloud-based manged services market include Cisco, HP, IBM, and NTT Data. This market is highly fragmented, with many large and niche players. The market is also characterised by the presence of region-specific players which have limited geographical reach. To survive some large vendors have acquired regional companies to boost revenues.

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