[Recap] - 4 Trends We Saw For Managed Services in 2018 and What it Means for the Future?

“The cloud managed services market is projected to grow from USD 27.15 Billion in 2017 to USD 53.78 Billion by 2022.”

– marketsandmarkets.com

Managed Service Providers in Hoboken support this statement, given the performance of managed services for 2018.

Cloud has leveraged the potential of managed services to whole another level.

The trends that were predicted for 2018 have come true for most of them.

Here, we are going to state and review the trends we saw in 2018 and at the end of this article, you will have a pretty good idea what to expect in 2019?

Top 4 Managed Services Trends that Shaped 2018

1. Margin Erosion, That Drove Market Changes

Considering the undeniable erosion in gross margins of MSPs in the last 3 years, the primary reason for it was the emergence of a large number of enterprises.

Apart from side competition, customers are rooting for more services at lesser prices.

Such scenario forces MSPs to bundle various prime services such as security management into their default service packages or even for free.

That was a major driving change in the operations of managed services.

2. Security Expectations

Newer attacks from cybercriminals force the security forum to keep evolving themselves that changes the threat landscape for real.

When large enterprises contact MSPs for cloud management and infrastructure services, they also expect to receive security for their information.

3. Cloud Complexity

In 2018, the race between small businesses to move to cloud intensified.

More cloud-based applications mean more user accounts, more transfer of data from cloud to on-premise systems.

This means MSPs need to manage more data in a challenging landscape.

Businesses are reliant on cloud for routine operations. Any issue faced between such operations lead to chaos and loss of revenue.

Managed services are bracing themselves to deliver business recovery and continuity, to better serve their clients for a long-term contract.

4. More Choices

Earlier, moving to cloud witnessed only the transition from CapEx model to operational expense model.

However, enterprises now understand cloud-based applications and want to try them out with different vendors.

This provides MSPs with choices and opportunities to expand their domain and catch hold of clients with specific demands and business necessities.

Who holds the Future?

To benefit majorly in the future, managed service providers in Hoboken need to offer a wholesome bundle of services, which appeal to specific verticals and domains.

Many MSPs already offer such bundles including information management, network management, cloud systems, and storage, etc.

Also, they need to integrate their present systems with IaaS and SaaS to stay aligned with industry standards.

The critical benefit also counts the strengthening of cloud capabilities instead of back-end systems.