The managed infrastructure services market captures all the outsourced infrastructure that is off-premise, but not running on a hyperscale cloud platform or housed in a colocation environment. This segment encompasses a wide range of infrastructure services that includes traditional offerings such as managed hosting, CDN and application hosting, along with next-generation services like private cloud, service provider-operated clouds and managed third party cloud services.
The managed infrastructure segment is both highly fragmented and dynamic at the same time. It exhibits steady growth but has more volatility than colocation as many of these services can be purchased on-demand and are used on a relatively short-term basis. The competitive landscape is littered with providers of varying sizes and those with specific focuses and specializations.
The most prominent recent development in this market: there is increasing separation between the legacy side, specialized services that are driving value-add and an emerging next generation of offerings. This has become more pronounced over the last 18 months. Traditional infrastructure services like standard managed hosting and colocation continue to face headwinds and are seeing decelerating growth. Meanwhile, complex managed hosting has proven to be resilient and occupies the most market share, but focused and even niche plays are increasingly critical to sustaining growth. Infrastructure services geared around third party applications like WordPress, SAP or Oracle and those that push into the value-add layer are at the centre of this dynamic.
The slowing growth of legacy services is a recurring theme and is being felt more acutely in mature markets where the push to public cloud is further along. The overall numbers don’t show more serious declines – and it is worth noting that the market continues to grow steadily overall – because a lot of the struggles are offset by the growth in developing markets around the world. Two of those markets – India and China – have incomparable size and potential.
The public cloud remains at the root of the decline in legacy services. Existing workloads are moving to cloud and anything newly built has a good chance
of landing there as well. This has helped spawn the new categories that are a part of this next generation of services. Foremost among them is the managed cloud market, which is still small in size, but growing at clips above the rest of the segments in the category.
The global managed infrastructure services market was worth $53.07b in 2019 and projected to grow at a five-year CAGR of 12%. The category is characterized by a number of moving parts, but is a clear reflection of how infrastructure is consumed in a variety of ways and not destined for a mythical one- size-fits-all platform.
This report measures and projects the growth trajectory of the managed infrastructure services market on a global and regional basis. This report is an excellent resource for any service provider, investor or end user looking to understand and project the global managed infrastructure services market or find a service provider.