The managed infrastructure services market captures all the outsourced infrastructure that is not running on a public cloud or sitting in a colocation environment. It encompasses a broad range of services that includes traditional offerings like managed hosting, CDN and application hosting, along with next-generation services such as private cloud, service provider-operated clouds and managed third party cloud services.
The managed infrastructure market shows a steady and relatively predictable growth trajectory. Like colocation, managed infrastructure services are sticky and have a certain level of natural built-in growth. In contrast to colocation, however, there is a bit more volatility. Especially on the SMB side, a significant portion of the managed infrastructure services market is not tied to multi-year contracts, the monthly spends are substantially lower and it is easy to get in and out of these services.
Similar to colocation, managed infrastructure is also being heavily impacted by the rise of public cloud. There are certain segments, such as standard managed hosting, that are being hit quite hard. But there are other services, such as managed third party cloud, that are riding on public cloud’s coattails and represent the future growth potential of this broad category.
All these dynamics reflect in the numbers. This
was a market that generated $41.23b in 2017 and is projected to grow at a five-year CAGR of 13%. Traditional services still make up the majority of this market and the growth rates are steady if not unspectacular. Those segments projected to grow at a faster rate, such as managed cloud, are smaller due to the shorter time they have spent in the market. They have a lesser impact on the overall numbers at this point, thought that is not to say things can’t change in the five-year period analyzed.
On the geographic side, mature markets such as the United States, UK and Europe, unsurprisingly dominate. But growth rates are slowing for them on a relative basis as some of the emerging markets, particularly in APAC, continue to gather momentum and are positioning to drive the next wave of growth.
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.