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 Channel Futures

Security


Cloud managed services

HPE, AT&T, Cisco Key Vendors in Cloud Managed Services

  • Written by Edward Gately
  • December 7, 2018
SMEs are adopting managed services to enhance their business offering, further encouraging vendors to create suitable products for such organizations.

Cloud managed services will continue to be a lucrative opportunity for the channel as the global market is expected to exceed $86 billion through 2022.

That’s according to a new report by Transparency Market Research, which expects a compound annual growth rate (CAGR) of 9.6 percent. Key vendors in the market include Hewlett Packard Enterprise (HPE), AT&T, Cisco, NTT Data and VMWare.

The vendor landscape currently is fragmented and stiff competition exists between market players. Several new vendors are expected to enter the market, increasing competition.

SMEs are adopting managed services to enhance their business offering, further encouraging vendors to create suitable products for such organizations.

On the basis of service, cloud-based security services are expected to experience high growth due to the surge in adoption of mobile data security services in developing organizations.

Accessibility of a strong framework will remain a concern for service suppliers as a continuous web network is required for service delivery. Simultaneous access from numerous clients to the cloud may result in system clog, which can hamper web speed and prompt a downtime.

Therefore, there has been an increase in the adoption of cloud-based innovation as it is less expensive and gives ongoing access and updates to business applications. Additionally, other factors fueling the market are expanding use of cloud services among SMEs, and growing external cloud managed service applications.

Increasing big data space has encouraged more interest for managed cloud services and cloud stockpiling services.

The market will foresee a few restrictions, such as data security and poor availability, according to the report. Information security will be a noteworthy limiting factor as it leads service suppliers to concentrate more on including security features to gain customers in the coming years.

North America is expected to remain the regional market leader through 2022, registering an 8.1 percent CAGR.

Tags: Agents Cloud Mobility & Wireless Security

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