In a newly published study, International Data Corporation (IDC) forecasts that the worldwide managed cloud services market will grow at a five-year compound annual growth rate (CAGR) of nearly 18% with spending reaching $62.8 billion in 2021
“The managed cloud services market is creating fundamental changes in the outsourcing industry involving the entrance of new providers, partnership ecosystems, investment requirements and opportunities, though also bringing with it some critical challenges to players shifting from a world of non-cloud (legacy) outsourcing to managed cloud services,” said David Tapper, vice president, IDC’s Outsourcing and Managed Cloud Services program.
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IDC’s study, Worldwide Managed Cloud Services Forecast, 2017-2021: An Extraction View of Technology Outsourcing Services Markets (IDC # US41967817), provides a forecast of managed cloud services involving private, public, and hybrid markets across eight major regions. The study also includes advice to providers of IT services, an analysis of market and industry trends by key managed cloud services markets and regions, key market drivers and inhibitors, and significant market developments.
“From a market perspective, the increased buyer adoption of managed cloud services and evolution to mature users of these services will translate to a substitution effect that not only displaces traditional outsourced-managed services but requires providers to make fundamental changes to their business operations,” Tapper said.