Cisco, IBM, Verizon Among Major Players In Cloud Managed Services

Cloud managed services look to be quite a revenue generator for partners in the coming years.

The global cloud managed services market is expected to reach $82.5 billion by 2025, according to a new report by Grand View Research, which expects a compound annual growth rate (CAGR) of 15.4 percent. The market was worth $23.2 billion in 2016.

Major industry players include Cisco, IBM, Verizon, Ericsson and NTT Data, the report states.

The focus of enterprises on primary business operations is resulting in higher cloud managed services adoption. Business services, security, network services, data-center services and mobility are major categories in the market.

Increasing mobile-device adoption will continue to drive growth in the mobility-services segment.

Customization, along with reduced IT costs, will drive adoption among SMBs. Also, increasing levels of data security will make the health-care industry attractive to resellers.

Market barriers include data privacy and security, and poor connectivity. Data security will be a major hindrance, affecting cloud adoption and the cloud managed services market as well. It will lead service providers to focus more on including security features to gain customers.

Availability of developed IT infrastructure will drive the managed cloud services adoption in North America. The regional markets of APAC, and the Middle East and Africa, also will see significant growth.