The worldwide managed IT service market is evolving with the fast rate due to the increase in digital information, the necessary to ensure it, the rising preference of bringing the devices, the continuous upsurge independency across independent networks, determined increase in complexity of technology resolutions and others which are driving the managed services market. According to a current study report published by the Market Research Future, The worldwide market of managed IT services is expanding and expected to obtain prominence over the forecast period.
- The managed IT services market is supposed to increase from USD 180.5 billion in 2018 to USD 282.0 billion by 2023, at a CAGR of 9.3% during the forecast period.
- The worldwide managed services market is supposed to touch USD ~245 billion by the end of 2022 with 11% CAGR during the projection period 2016-2022.
The world is testifying a standard shift in terms of recent tendency and technologies redefining the way business is done. The point is that business models suffer extreme pressure from regulatory, macroeconomic and other crucial market organizations have required an increased focus on operational performance and effectiveness.
But, this might make the companies feel the burn on their earnings, capital, and price. As such, they are increasingly shifting to Managed IT services to trail these barriers to concentrate their time on activities more valued to their business.
What are Managed Services?
A Managed Service Provider (MSP) endures the liability for the functionality of a company’s IT infrastructure services, so the company can concentrate on its core capabilities.
Therefore, in a managed services model, the MSP collaborator undertakes, drives and modifies an organization’s business operations and processes to grow its potency and operational efficiency.
The requirement for managed services is mainly driven by several reasons, some of which involve:
- Unstable, uncertain macro business situation.
- Raised pressure to modernize while maintaining pace with technological improvements.
- Require to satisfy the demands of regulatory compliance.
- Be short of internal and extensive technical expertise.But, the market is continually growing, leading new trends and possibilities. MSPs must be informed of these trends to capable of leveraging the maximum out of it. Here, we have enlisted the first 7 managed services market trends that each MSP must be conscious of in 2019:
Top 7 managed services market trends
1. Improved stake on security and escalation in cyber attacks:
The end customers of an MSP usually think that the latter will care about the security of their data and information. The past year has witnessed an increment in the number of cyber attacks. This has pushed businesses to adopt ‘security-first’ thinking.
MSPs, thus, put more endeavors to defend the IT infrastructure of their end customers. It’s not only about owning security solutions in place but also to protect and overcome against any attack. MSP business models which take this into attention can lead with a powerful differentiating point in 2019.
2. Cloud, automation and outsourcing:
Three trends that can impact MSPs:
Cloud: Cloud is frequently being used to create new stages for improving customer engagement to adhere to digital transformation requirements of the enterprises. Application of multi-cloud environments is witnessing an enormous growth, wherein customers are depending on one cloud massively while using the other periodically. Here, MSPs can avail the big break by offering consumption-based pricing models.
Automation: The growing amount of automation in IT environments can repay a large amount of work. MSPs can assume the workloads to reduce with every commitment, as most of the processes become computerized. Here, by adding automation solutions in their key offerings, MSPs can get a competitive edge.
Outsourcing: Market experts have identified +as the third aspect that will affect the MSP market. An increment in the IT outsourcing activities will return in MSPs decreasing their dependency on conventional SLAs (Service-Level Agreements) and more on XLAs as defined by him. XLAs will concentrate more on client and employee satisfaction than uptime.
3. Introduction of tacos and ISVs (Independent Software Vendors)
Telecom Service Providers or better known as telcos are advancing the use of their current measure and IT savviness to move beyond data services and voice to selling managed offerings.
They previously work on the acceptance model and hence, know much about it. As telcos subscribe to the managed services area, the existing MSPs will sense the trouble to seek new ideas to enhance revenue the year ahead and beyond.
4. Emerging technologies like IoT and Blockchain
Rising technologies like the Internet of Things (IoT) can build big possibilities for MSPs. Through a report, the amount of IoT devices that are running is supposed to increase to 10 billion by 2020 and 22 billion by 2025.
Businesses need an extensive skill set and knowledge to use these technologies. Rival MSPs can recognize this gap and obtain substantial knowledge of these rising technologies. It can encourage them to enhance their value.
In the forthcoming years, SMBs are also predicted to adopt AI, virtual reality, augmented reality, and other advanced technologies.
5. Increased Mergers and Acquisitions
The business can notice an increment in the alliances and acquire associated with tools that MSPs use to run their businesses. This is because competing providers will like to take all viewpoints of unbeaten selling under one roof and offer a unified solution package.
As a service provider, if you’re not giving something that the client requires, you are finally building an opportunity for him to walk away. If you cannot develop a skill set, you hire it. Hence, the market is witnessing more M&As of security solutions, IPs and other significant skills.
6. Growth in as-a-service technologies
There will be an improvement in as-a-service technologies like platform-as-a-service (PaaS), software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), etc.
Such technologies offer a number of benefits in terms of scalability, price, and safety as they are on subscription-based billing model. An MSP can support an organization to change to these services simply and manage them.
7. Demand for outcome based services
Enterprise clients now see towards results-based outcomes with pre-defined or expected patterns. This is one of the reasons why consumers are going with full stack service providers rather than single-tower services. To match this trend, MSPs would require developing their style of management and functions they implement. They must be capable to offer consulting services to their customers in terms of measurable results.
There’s no uncertainty that an opportunity occurs only to those who are prepared. A lot of reports is needed to make a successful MSP system. They have to perfect every process from primary assessment to signing the deal to managing services. By staying modernized on the trends, they can assure that they will be prepared to capitalize on it quicker than their opponents.