Managed services involve the practice of outsourcing routine management functions and responsibilities to strategically enhance operational efficiency and reduce overhead expenses. The aim of this report is to analyze the present and projected trends of the managed services market as business model has garnered widespread acceptance across industry verticals. The study covers a detailed analysis of the market of the various segments of the market. The report analyzes opportunities in the developed and emerging economies so that companies can strategically plan business moves as per their targeted regions.
The key driver for the market is reduction in cost of operations and enhanced organizational efficiency. Since the outsourced responsibilities are not the key result areas of the specific organizations, it allows companies to focus on its core functions and reduce the cost of unimportant tasks. Additionally, managed service providers (MSPs) give customized services according to client requirements, which is another driver for the market as it encourages organizations to outsource their functions. The MSPs have technical competence in the services they provide; therefore, it gives the outsourcing organization an assurance that their tasks would be handled with finesse. However, concerns over security of data and privacy are one of the key restraints for the market growth as the services are managed by a third party organization, which handles requirements of multiple clients. Furthermore, there are doubts over the efficiency of the business model of managed services due to complexities in operations of various MSPs, which may not be at par with the requirements of the outsourcing organization. The advances in networking and storage services such as cloud computing present better growth opportunities to the managed services market.
Global Managed Services Market Analysis by Managed Data Center Services
The managed data center services are segmented on the basis of managed services, colocation services and managed storage services. Currently, the colocation services market is projected to have the highest market share, as organizations prefer these services, as it allows them to outsource the storage space and still have complete control over the data management. However, it is projected that managed storage services would have the highest growth potential as cloud services is a part of it and it allows organizations, flexibility in data management.
Global Managed Services Market Analysis by Managed Network Services
The managed network services is segmented on the basis of managed network monitoring and maintenance, managed MPLS VPN, managed Ethernet access, managed WLAN/WWAN, managed router and switch and others. The managed network monitoring and maintenance is oldest managed service in all network services; therefore, it has the highest revenue share. However, managed WLAN/WWAN services is expected to have the highest market potential as the ultra high speed capabilities due to technological advances would enhance the acceptability of these services.
Global Managed Services Market Analysis by Mobility Services
The mobility services are segmented on the basis of managed mobile value added services (VAS), managed mobile security services, managed tablets, smartphones & mobiles services and others. Mobile security services has the highest market share as it is an essential component of mobile applications due to increased security threats. However, it is expected that mobile VAS would have the highest growth potential as service providers would provide value addition owing to customer demand and to retain their market share by enhancing customer satisfaction.
Global Managed Services Market Analysis by Infrastructure Services
The infrastructure services are segmented on the basis of managed print services, managed desktop services, managed backup & recovery services, managed servers, managed inventory services and others. Managed desktop services are the most mature infrastructure services as service providers started services very early to meet the rising demands. Therefore, managed desktop services have the highest market share. However, managed backup and recovery services is expected to have the highest market potential as increased data generation leads to concerns of data loss in complex networking environment.
Global Managed Services Market Analysis by Managed Communications Services
The managed communications services are segmented on the basis of managed unified communications, managed email communications, and managed VOIP communications. The managed email communication services has the highest market share as it is the most commonly outsourced service used by most organizations in today’s business environment. However, managed unified communications is projected to have the highest growth potential as it allows all purpose business and personal communication services, which would allow a one stop commercial solution to organizations.
Global Managed Services Market Analysis by Information Services
The information services are segmented on the basis of managed business process, managed operations support services/ business support services (OSS/BSS), managed database services and others. Managed business process services currently has the highest market share as several management functions such as recruitment, sales and maintenance support, billing services, etc. are outsourced by organizations across industry verticals and it is expected that business process services would continue to have the highest market share in the future. However, managed database services are projected to have the highest growth potential due to tremendous increase in generation of structured and unstructured data which needs to be managed efficiently.
Global Managed Services Market Analysis by Geography
The geographic segmentation of the market is made on the basis of North America, Europe, Asia-Pacific, and Latin America, Middle East and Africa (LAMEA). North America is currently having the highest market share due to early acceptance of managed services by businesses across industry verticals. However, Asia-Pacific is expected to have the highest market potential due to increase in the number of MSPs.
Product and new service introduction are the key strategies opted by companies in the market as it is a service driven market where companies are constantly introducing new services. Some of the key companies profiled in the report are Alcatel-Lucent, Cisco, At&T, Dell, Ericsson, Hewlett-Packard (HP), IBM, Microsoft, Rackspace and Verizon Communications.
High level Analysis
The report analyzes the potency of buyers & suppliers, threat of substitute products and new entrants based on the Porter’s five force model. Since the buyers of the market are business organizations, they are well aware of their outsourcing requirements; therefore, the bargaining power of buyers is high. The bargaining power of suppliers is low as the switching cost of buyers is low and there are several suppliers in the market. The threat of substitute products is high as companies are constantly innovating and developing new solutions and services to increase their market share. The market requires high capital investment and significant technical expertise; therefore, the threat of new entrants is low. The intensity of rivalry is high as companies are constantly introducing new services to attract buyers. The top investment pockets are evaluated based on the market estimations of each segment.
The market is segmented into various segments as follows:
MANAGED DATA CENTER SERVICES
MANAGED NETWORK SERVICES
MANAGED MOBILITY SERVICES
MANAGED INFRASTRUCTURE SERVICES
MANAGED COMMUNICATIONS SERVICES
MANAGED INFORMATION SERVICES
MARKET BY GEOGRAPHY