The IT managed services market is forecasted to hit CAGR of approximately 11.27% from 2020 through 2025.
Both public and private organizations have stimulated the growth, and private business entities are moving their work-critical compute instances into the hybrid cloud and management systems. More so, a quick shift in information mobility and security management through applications has occurred due to workforce remote operability for both short and long-term strategic decisions. Additionally, the rapid digital transformation trend among various organizations has accelerated the adoption of IoT, cloud, and Big Data analytics. The need for streamlined, flexible, and efficient data storage, management, and processing systems has risen. Thus enterprises are nesting ITSM into strategic business engagements rather than following the traditional operations-only arrangement.
SA's experience in IT Managed Services realises that a functional consolidation is perceived and is in demand rather than isolated and discrete IT services, leading to bundled hybrid services, gaining immense traction in the market. From assisting to launch an offering and providing long term operations support, IT managed services are incorporating process automation tools and AI to automate certain parts of their functions and make it an end-to-end management solution. To procure a bundle of services and provide hybrid IT managed services, mid-market IT companies are initiating strategic partnerships and investment in specialized IT services - like CloudOps, & AI Ops to create an end-to-end ecosystem management solutions.
Freshworks was looking at expanding its IT services (ITSM) and operations management (ITOM) capabilities. They acquired Flint, an IT orchestration and cloud management platform, which helped Freshworks strengthen its Freshservice IT support service by introducing several of Flint’s new automation tools to automate and orchestrate IT tasks. Flint’s technology also enables Freshworks’ clients to manage workloads across multiple clouds.
IT Managed Services Providers need to be evolving with advanced trends in technology and services. Advanced MSP providers reduce the risks of implementing new technologies in core business strategy for any enterprise clients without those capabilities. MSP providers who want to advance themselves should look into the below trends to ready them accordingly:
Trend 1: Hyperconverged Infrastructure demand rise
The cost benefits of centralized and simple monitoring with scalability advantage have risen the demand for hyper-convergence of IT framework integrating storage systems, servers, and networking into one platform. Gartner has predicted that by 2020, 20% of business-critical applications currently deployed on three-tier IT infrastructure will transition to hyper-converged infrastructure.
Trend 2: AI and Data operated Data Center
AI will be embedded in IT Ops to automate and detect patterns in server or network hardware failures and data processing and management to proactively streamline data flow, distribute workloads, and solve problems when they occur. AI can proactively solve problems before they occur.
Trend 3: Implementation of virtualization in every IT operations
Advancement in IT service provisioning is leaning towards API and embedded analytics to have a consolidated overview of operations by procuring system data insights. They can automate and optimize various IT operations and create a platform for virtualized infrastructure monitoring.
An opportunity rises to those who are ready to soar in the market high. It requires time and investment in skilled resources to build a technologically advanced and bundled MSP practice. A strategic approach to partnerships and quick investment in ready capabilities can ensure that ambitious enterprises capitalize on the advanced ITMS market demand faster than their competitors.
SA has been recognised as among Top M&A Advisory Firms by Venture Intelligence in 2020. Click here to know more.