Forecasts are in: Managed cloud services market to rise

cloud service market

cloud market

A market forecast report, published by Meticulous Research, shows the global managed cloud services market is projected to grow 14.2 percent on a compound annual basis to reach $247.5 billion in revenue by 2030.

According to the report, much of that increase will be driven by lowering the bar to cloud adoption and increased demands for cloud services from the banking, financial services, and insurance sectors, as well as healthcare organizations that still run most of their applications in on-premises IT environments.

Additionally, there will be significant opportunities to integrate cloud computing and on-premises IT environments better, the report notes. Researchers also conclude that the biggest challenge remains security and compliance concerns. They make organizations weary of deploying applications in multi-tenant IT environments.

Few organizations have modernized their applications to scale in the cloud

Organizations today are running the same types of monolithic applications they built and deployed in an on-premises IT environment. Just this time it is in the cloud. Few of these applications have modernized to leverage the ability to scale up and down using dynamic cloud-native orchestration capabilities.

That’s understandable because there is still a shortage of application developers who possess the expertise required to build applications based on microservices using container software artifacts. Those applications are typically easier to update, secure, and consume IT infrastructure resources more efficiently, but they are also harder to build and maintain. It’s not uncommon for many developers to continue to prefer to build and deploy monolithic applications.

The greater the variety of applications being deployed, the more likely it is for organizations to require the expertise of an MSP. They need an MSP’s expertise to help build, deploy, manage, and optimize. Many internal IT teams have tended to prefer to manage cloud applications themselves using platform engineering teams that employ best DevOps practices.

Managed platform engineering creates MSP opportunities

However, more organizations have become dependent on software than before. Many companies choose to allocate much of their internal IT resources to writing code. This is opposed to managing applications and the infrastructure they deploy on. That shift creates an opportunity for MSPs to provide a managed platform engineering service that the bulk of organizations lack the competence needed to build and maintain them.

Savvy MSPs are already investing in acquiring the expertise needed to manage and secure cloud applications at scale. Thanks to advances in artificial intelligence, the management of cloud application environments will undoubtedly become more automated. Fortunately, MSPs are in a much better place to realize the benefits of that automation than almost anyone else.

Photo: everything possible / Shutterstock

This post originally appeared on Smarter MSP.

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