Managed Services Providers (MSPs) worldwide can expect multidimensional changes in the industry as they navigate industry-specific requirements, experience market consolidation, and adopt futuristic technologies in 2022.
A report by Gartner forecasted that IT spending across the globe will surpass $4 trillion in 2022 [1]. Moreover, a Spiceworks Ziff Davis (SWZD) ‘2022 State of IT’ report that surveyed over 1,000 businesses across multiple countries found that over 50% of the IT buyers plan on increasing their IT budgets by 26% (on average) [2]. And while about 30% of the total IT spendings would go towards hardware, over 26% would go towards cloud services.
With the increase in spendings in the overall IT and cloud services industry, an increase in spendings in the Managed Services Provider (MSP) industry is also expected. The global (MSP) market size is predicted to reach US$ 354.8 billion by the year 2026 from US$ 242.9 billion in 2021 at a CAGR of 7.9% during the forecast period 2021-2026 [3].
Here are the top 5 Managed Services Trends that are expected to thrive in 2022.
1. The Internet of Things and Blockchain
With the increasing number of devices, equipment, and machinery being used by industries increasing rapidly, the need for real-time management and control of devices has also increased. According to Statista, approximately 35.82 billion Internet of Things devices are already installed across the globe, and there’ll be 75.44 billion by the year 2025 [4].
Though this number is all-inclusive, the increase in the number of devices will also largely be in businesses and manufacturing units. This will ultimately lead to more investment in technology and subsequent employee training.
Companies will have to invest resources in creating rigorous hiring processes to fill vacancies with candidates who can operate these connected devices and managed service providers will leverage this market gap. MSPs around the world have expanded their umbrella of services into automation and blockchain. They’re training companies to adopt and execute market-related blockchain technologies. MSPs have also contributed to the massive adoption IoTs in businesses across the world and will continue to do the same in 2022.
2. Cloud Computing and Automation
Most IT buyers in organizations have realized that customer engagement and experience heavily rely on a skilled workforce that’s well trained. As training employees consumes time and money, businesses have started resorting to cloud-managed services. Cloud MSPs have the right tools, experience, and skillset that fits industry requirements.
Many cloud-managed service providers offer flexible pricing and subscription plans that are affordable as well as scalable. In 2022, to leverage the power of cloud computing solutions, more businesses will embrace managed service providers for assistance.
3. Infrastructure-as-a-Service
Groundbreaking innovation and technologies have streamlined and aligned strategic business operations, and a noteworthy shift is happening towards result-oriented operations. Though most organizations are willing to integrate these technologies in their business, the skill gap that’s been acting as a big hindrance. Cost is another issue, in addition to the software being complicated to operate.
Here’s where ‘Infrastructure-as-a-Service’ comes into play. Cloud-managed service providers offer software platforms subscriptions, which enable businesses to use their services to outsource industry-specific business components, like servers, networks, software units, or storage.
4. The Consolidation of MSPs
Managed-service provider platforms, in which smaller service providers can be merged, gained a lot of investment and funding in 2021. This consolidation (or merging) of cloud consultancies and MSPs is expected to continue in 2022. Moreover, as MSP platforms acquire smaller cloud services providers, they will continue to expand their geographic reach in the next year as well. By doing this, MSPs will be able to provide services on a global as well as local level.
5. Partnering models
In 2022, how managed services providers partner with vendors and customers will evolve. Partnering models and approaches, like generative partnering and co-innovation, will gain momentum.
In the co-innovation partner model, MSPs will be able to work with technology vendors to create a service or offering for customers. This co-creation could be made for a specific industry or niche and built on a public cloud provider’s platform. In generative partnering, a customer collaborates with an MSP partner to build a service or offering to co-sell and share a revenue stream.
Organizations prefer partnering with managed service providers, like GoDgtl, that are on top of these trends and ahead of the curve. If you want to partner with a disruptive MSP that’s future-ready, feel free to reach out to us.
Learn more about our managed services here.
Sources
[1] Gartner (2021) “Gartner Forecasts Worldwide IT Spending to Exceed $4 Trillion in 2022” [Online] Available from: https://www.gartner.com/en/newsroom/press-releases/2021-10-20-gartner-forecasts-worldwide-it-spending-to-exceed-4-trillion-in-2022 [Accessed December 2021]
[2] Spiceworks Ziff Davis (SWZD) (2021) The 2022 State of IT [Online] Available from: https://swzd.com/resources/state-of-it/ [Accessed December 2021]
[3] MarketsAndMarkets (2021) “Managed Services Market with COVID-19 Impact Analysis, by Service Type (Managed Security, Managed Network, and Managed Data Center and IT Infrastructure), Vertical, Organization Size, Deployment Type, and Region – Global Forecast to 2026” [Online] Available from: https://www.marketsandmarkets.com/Market-Reports/managed-services-market-1141.html?gclid=Cj0KCQiAweaNBhDEARIsAJ5hwbe2jhRQj3nsZuRQFFIlg0v6QhBLwnKK_G1OLNuMWQoUitq2ATk-yD8aAnwrEALw_wcB [Accessed December 2021]
[4] Statista Research Department (2016) “Internet of Things (IoT) connected devices installed base worldwide from 2015 to 2025” [Online] Available from: https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/ [Accessed December 2021]