Cloud managed services have revolutionized the IT outsourcing landscape, enabling businesses to entrust the management and operation of their cloud infrastructure, applications, and services to third-party providers.
This approach offers various advantages, including cost savings, scalability, security, reliability, and access to cutting-edge technologies. The benefits of cloud managed services do make it an attractive approach, but there are challenges and blockers that enterprises need to consider in 2024 and beyond.
This article presents an outlook on the cloud-managed service landscape in 2024 and what it holds in the future for businesses.
Demand Dynamics & Statistics of Cloud Managed Services
Cloud managed services is like IT outsourcing, in which businesses delegate the management and operation of their cloud infrastructure, applications, and services. Cloud managed services can offer benefits such as cost savings, scalability, security, reliability, and access to the latest technologies and innovations.
According to MarketsandMarkets, the global cloud managed services market is expected to grow at a CAGR of 10.6% and reach $164 billion by 2027. So there is no denying that demand for cloud managed services is increasing.
The major factors driving higher demand for cloud managed services are the adoption of cloud computing, the need for operational efficiency, and cost optimization.
Some critical segments of the market are:
#1. Based on the service type
The market is divided into managed infrastructure services, managed network services, managed security services, managed data center services, managed mobility services, and managed communication services. Managed infrastructure services will have the most significant market share because they help businesses reduce the cost of managing infrastructure.
#2. According to the deployment model
The public cloud segment is expected to have a significant market share during the forecast period. This is because the public cloud offers several advantages, such as scalability, flexibility, and lower capital expenditure.
#3. Based on organization size
The market consists of small and medium-sized (SMEs) and large enterprises. Among these, the SME segment is expected to have the highest CAGR. SMEs increasingly adopt cloud-managed services to gain a competitive edge and access advanced technologies without investing in expensive IT infrastructure.
#4. Business verticals
The market includes banking, financial services, insurance (BFSI), telecommunications and IT, government and public sector, healthcare, retail, manufacturing companies, energy and utilities, media and entertainment, and others.
The BFSI segment will have a more significant market share among others in the segment. BFSI organizations leverage cloud managed services to enhance customer experience, security, compliance, and operational efficiency.
What’s New in Cloud-Managed Services
Cloud managed services constantly evolve to meet businesses’ and customers’ changing needs and expectations. Some of the recent trends and developments in cloud managed services are:
#1. Artificial intelligence (AI) and machine learning (ML)
AI and ML enable cloud-managed service providers to automate monitoring, troubleshooting, optimization, and security tasks. AI and ML can also help businesses gain insights and improve their decision-making and performance.
#2. Edge computing
Edge computing brings computation and data storage closer to the sources, such as devices, sensors, or users. Edge computing can reduce latency, bandwidth consumption, and data transfer costs. Cloud-managed service providers can help businesses to deploy and manage edge computing solutions that complement their cloud infrastructure.
#3. Multi-cloud management
Multi-cloud management is a strategy that involves using multiple cloud providers for different purposes or workloads. Multi-cloud management can offer benefits such as avoiding vendor lock-in
enhancing performance, reliability, security, and compliance. Cloud-managed service providers can help businesses orchestrate and integrate their multi-cloud environments seamlessly.
#4. Serverless computing
Serverless computing is a model that removes the underlying infrastructure from the developers and users. It allows businesses to pay only for the resources they use and scale up or down automatically based on demand.
Cloud-managed service providers can help businesses leverage serverless computing platforms such as AWS, Lambda, Azure Functions, or Google Cloud Functions to run their applications without worrying about servers.
Cloud Managed Services Innovations to Look for in 2024
The future of cloud managed services is bright and promising. Some of the innovations that we can expect to see in 2024 are:
Blockchain-based cloud management
Blockchain works on the basis of a distributed ledger technology, which allows secure and transparent transactions without intermediaries. It can enhance cloud management by providing features such as identity verification, smart contracts, auditing, and governance.
Blockchain can also enable decentralized cloud management models that allow users to share their idle resources with others in exchange for rewards.
Quantum computing
Quantum computing uses mechanical phenomena such as superposition and entanglement for computations. These computations are otherwise impossible or impractical for conventional computers. It can offer advantages such as speed, scalability, and security for cryptography, optimization, and simulation applications.
Quantum computing can also enable new possibilities for cloud management, such as quantum encryption, quantum key distribution, and quantum machine learning.
5G and beyond
It’s interesting to hear about the advancements in 5G and cloud computing technologies expected in 2024. 5G networks will enable advanced applications involving IoT, AR/VR, autonomous systems, and industrial applications, leading to new managed services.
Cloud providers are also innovating through services like AI/ML at the network edge, private 5G networks, open RAN technologies, and container-based cloud-native architectures, which will provide new capabilities to support managed services across various industries.
What’s Next for Managed Services Providers?
Managed Services Providers (MSPs) provide cloud managed services to businesses. Customer expectations, competition, and regulation will influence the future of MSPs.
Customers expect customized, flexible, and scalable solutions, meaning managed services providers must differentiate themselves from others and collaborate with other entities within the cloud ecosystem. MSPs must comply with regulations and standards to ensure data security and privacy. Ultimately, selecting the right MSP can be critical to the success of your business.
Selecting The Right Managed Services Provider
Choosing the right managed service provider is vital for businesses using cloud managed services. It would help if you considered expertise, services offered, scalability, security, and support. The best way to select the right MSP is by researching extensively and asking for proof of concepts.
However, if you are looking for a reliable cloud managed service provider, Blazelan can help. Contact us now for more information.
