Managed Services Market

• Managed services are majorly used to provide additional value for end-users in their respective business processes. Over the past few years, the network-cost model has been changing from an asset and liability-based model to a utility-based model.
• It is estimated that the year on year capital expenditure by small and medium businesses towards these services will increase by 25%. The market for SMBs and cloud services is expected to take a bigger share, despite the slow growth rate of the overall IT expenditure in SMBs.
• Organizations are focusing on cost reduction by cutting down the number of suppliers and are reducing the payment size. Over the past few years, bundled services have gained traction in the market over the discrete ones.
• In 2019, the Blockchain and IoT technologies are set to create better opportunities for the managed services providers, as these organizations require expertise to implement these technologies. To get a hold of this opportunities and to stay relevant and keep up with the competition, the managed services providers are increasingly acquiring essential skillsets for these among other innovative technologies like AR, VR, and AI.

Scope of the Report

Managed services refer to a concept wherein an organization’s in-house day-to-day management functions are managed by a third party service provider. Managed services involve outsourcing of services related to infrastructure, security, printing, mobility and other functions, while the ownership rights stay with the end-user.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Managed Security is Expected to Hold a Significant Share

• Worldwide spending on security-related hardware, software, and services is forecast to reach USD 120 billion by 2022. Rising security threats, regulatory compliance, and fear of data breaches will continue to drive security investments across various industries. Many major organizations are adopting managed security services to help maintain security within an organization.
• Managed security services (MSSs) with advanced threat detection and remediation capabilities are enjoying high adoption rates. Connected devices are further expected to propel distributed denial of service (DDoS), and advanced persistent threat (APT) attacks. Thus, enterprises are seeking more proactive security measures to maintain security within an organization. According to Cloudflare, the financial cost of a DDoS is significant, as falling victim to a DDoS attack can cost an organization around USD 100,000 for every hour the attack lasts. The above factor is fueling the demand for managed security services.
• In addition to traditional security services, many MSSPs have begun offering other advanced security services, be it managed advanced persistent threats (APT), application, cloud, mobile security, and advanced endpoint detection and response.
• According to the 2018 report by Kaspersky Lab, the three industries most likely to suffer from a DDoS attack are telecoms, financial services, and IT. On average, large enterprises lose USD 417,000 as a result of a denial of service attack and small and medium enterprises lose USD 53,000. In 2018, around 20% of the companies with 50 employees or more reported that they have been the victim of at least one DDoS attack.

To understand key trends, Download Sample Report