Cloud Managed Services are being demanded significantly due to rising usage of cloud based applications among businesses for storing their data over the cloud. The cloud based applications are increasing adopted due to its cost efficiency and economical manner for storing data.
The growing usage of cloud based application has encouraged businesses to take help from managed service providers to manage their cloud based applications. These cloud managed service allow user to configure application service at any level, and at any stage of the cloud.
Cloud Managed Services provides help in enhancement of IT infrastructure that needs to be managed in collaboration with third party through cloud platforms.
These services include managed network operations, managed security operations and other operations. These also improve efficiency of a company by providing them competencies in which they are lacking or replace the functions that incurs higher cost to company.
Cloud Managed Services help enterprises to focus on their business related critical activities and provide third party management to their cloud based applications. Cloud Managed Service providers help in managing business process services, storage services, hosted services, application management services, maintenance services, security management services and others.
The major factor driving the adoption of Cloud Managed Service is the rising cloud technology adoption among businesses for managing their application. There has been significant rise in the adoption of cloud based technology as it is less costly and provides real time access and updates to business application. Moreover other factors that are helping this market to grow are increasing usage of cloud services among SMEs, and increasing third party cloud managed service offerings.
The key challenge for Cloud Managed Service is the risk of private information leak. The cloud based offerings faces security risk due to lack of security technologies developed to secure cloud based applications. Moreover, third party management for cloud based application increases risk of data theft and data misuse due to which many companies do not select cloud managed services.
The other challenges that are restricting this market to grow are lack of efficient cloud managed service technology and lack of supporting IT infrastructure.
In September 2016, Cognizant has entered into the partnership with Oracle to provide cloud managed service to their clients. This partnership will help Oracle to provide their customers cloud managed solution and services efficiently with the help of Cognizant.
In August 2016, Telarus, a cloud infrastructure service provider has entered into the partnership with Fusion, a cloud service provider. This partnership will help Telarus to offer its customers fully integrated suite of cloud communication, cloud connectivity and managed network services through its distribution network.
In Cloud Managed Services market there are many vendors some of them are Vodafone, Cisco, Accenture, Huawei, Ericsson, Alcatel-Lucent and others.
North America is holding the largest market share currently for cloud managed service market due to high adoption of digital technologies among small and medium business. The adoption of cloud application and cloud platform is also impacting the market for cloud managed services in a positive manner. Companies such as IBM is also working towards the development of cloud managed service platforms with the partnerships and acquisitions in this market to enhance market opportunities.
In Europe region, the market for cloud managed services is witnessing high growth rate due to the increasing demand for managed service for network operations, security management, and cloud application management.
The Asia Pacific region is following the Europe region in cloud managed service market. This market is expected to have the highest growth rate in coming years due to the adoption of cloud based business application and growth in the cloud service providers.
Cloud Managed ServicesMarket Segments
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Segmentation on the basis of services:
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