Managed Services Market Is Big For 6 Good Reasons


Archive article - published on August 09 2021

According to market and consumer data company, Statista, the managed services market is big. “Big” may even be an understatement. The company cites 2020 revenues associated with managed services as $152.02 billion. And, the sector is expected to grow by nearly 80% over the next five years to $274 billion worldwide. That’s a lot of outsourcing which is being led primarily by North America and Asia. Inherent in those numbers is cloud managed services.

If you’re not familiar with what is meant by cloud managed services, it is the practice of outsourcing the responsibility for maintaining and anticipating the need for a business’s cloud-based IT processes and functions to improve operations and cut expenses.

Leave the Driving to Us

North American-based intercity bus carrier Greyhound once used the slogan, “Leave the driving to us,” as the cornerstone of its advertising—television commercials, billboards, magazine ads, and radio spots. Like the common carrier, managed services providers look to assist IT decision-makers by “driving.” If you were trying to navigate the road, so to speak, of your Cloud Platform, the right provider could be your solution.


Typically, managed services are provided under a subscription-based model. This is an alternative to the per-incident model, which you’re likely familiar with in dealing with your auto mechanic. Your car breaks. You bring it in for service. You pay the mechanic for labor, time, and parts.

Under the subscription model, the managed services provider (MSP) delivers a collection of managed services. While the client or customer has direct oversight of the organization’s resources, the service provider is responsible for its care as defined by a contract. Usually, there’s a service-level agreement that defines precisely how the mutually beneficial relationship works.

Benefits Are Plentiful With Managed Services

As a society, we like subscription-based models. Many of our daily interactions (Spotify, Netflix, LA Fitness, Hello Fresh) are derived under this construct. So, there’s a familiarity with these types of dealings. As consumers, we’re comfortable working this way because we can “cancel at any time.” The same holds for managed services. There’s a confidence and comfort that comes with knowing our business is not “locked-in” to a single provider and that we can scale the service as needed to fit the needs of our business.

Familiarity is just the tip of the iceberg when it comes to managed services, however. The actual (and in many cases measurable) value comes from an array of other benefits inherent in using a managed services provider. Consider these six really good reasons (at we call them the 6Rs) for using managed services:


Reduce costs. Since managed services are subscription-based, they are classified as an operating cost rather than a capital expense. That translates into savings on the cost of capital, but which also brings savings on labor costs. One company calculated its reduction in on-going IT support at 55%. Plus, your finance department will love the predictable monthly investment that comes with no surprises.

Reliability. Proven IT support will increase your business productivity. Get reliable response times and coverage seven days a week backed by service level agreement (SLA).

Responsiveness. Constantly reacting or telling your IT provider about problems can be exhausting. Managed services providers bring a proactive approach that can keep you ahead of issues before they happen. Our experts will provide you with additional insight into your current infrastructure.

Refocused. Staying focused on your core business is one of the most significant benefits of outsourcing IT operations. Take the burden off of your internal team so that they can focus on those things that will drive your business forward.

Real experts. Managing IT operations requires a broad and deep skillset. Unfortunately, most companies can’t afford to keep a stable of experts on hand. Outsourcing to a managed services provider means having the right expert with the knowledge you need whenever you need it. The best providers will assign engineers and technicians that will mesh with your organization like a team member.

Right-sized. Not all IT support needs are the same. Most managed services providers will provide a package or bucket of hours that will fit your organization in just the right way.

Choose Providers Wisely

Not all cloud managed services providers are the same. You want to look for a provider with the depth of experience to support your organization’s needs. They also should be willing to partner with you so that they become a part of your team. For more than a decade, has provided managed services to businesses of all sizes and across all industries. Contact us today for a no-obligation assessment of your IT environment. We’ll show you how we can help your business realize those 6Rs.

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