Tag: Trends

5 Emerging Managed Service Trends That Will Rule in 2022

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]

6 Disruptive Cloud Computing Trends in 2022

During the Covid-19 pandemic, a cloud computing explosion was seen when work was forced to go virtual, and companies had no choice but to embrace cloud technologies. In 2022, continued rapid adoption of cloud computing technologies is likely.

According to research by International Data Corporation (IDC), total worldwide spending on “whole cloud” (the hardware and software underpinning the cloud technology supply chain, and the cloud managed services) – will cross $1.3 trillion by the year 2025 at a CAGR of 16.9%^[1].

Here are 6 of the most disruptive cloud computing trends that are expected to rule in 2022.

1. Hybrid cloud environments

Tech giants of the world, like Amazon, Microsoft, and IBM, are focusing more on the rollout of their hybrid cloud models. The hybrid model will give the best-of-both (public and private clouds) world to businesses. Hybrid cloud computing services are, in no way, about compromising between the private and public cloud. Hybrid is more about combining the advantages of the two.

A BCC Research report found that the global hybrid technologies market is expected to reach $98.8 billion by the year 2022, at a CAGR of 20.1% for the period of 2017-2022 ^[2].

On one hand, the information that needs to be comparatively more accessible than others can be stored on the public cloud (like Azure or AWS) and accessed via apps and tools. On the other hand, the critical, confidential and more sensitive data can be stored on private cloud servers to which the access is limited and can be closely monitored.

In 2022, as we financially recover from the pandemic, more organizations will realize the power of hybrid cloud models and start will embracing hybrid technologies.

2. Serverless cloud

This is a relatively new cloud computing trend that is expected to gain traction in 2022. Also referred to as ‘functions-as-a-service’ (FAAS), the serverless cloud would mean that companies wouldn’t have to lease servers or pay for a certain fixed amount of cloud storage.

Serverless clouds would be available as a ‘pay-as-you-go’ service where you won’t have to switch between plans and the infrastructure would scale as and when the app required it.

‘Serverless’ doesn’t literally mean ‘no server’. It translates to an added layer abstraction between the platform and users. This one is one of the most exciting cloud computing trends that we want to see unfold in 2022. Serverless will play a significant role not just in cloud computing, but in the broader technology landscape of enhancing user experiences.

3. The Internet of Things & Edge Computing

In an attempt to bring data and data processing closer to the end-users, data storage and processing is becoming decentralized via edge computing. Cloud service providers are responding to the growing adoption of IoT devices with edge computing. It doesn’t just bring down bandwidth usage and its cost but also reduces latency considerably.

According to Statista, the global edge computing industry is expected to experience an increase in market size from US$ 1.93 billion in 2018 to US$ 10.96 billion by 2026 ^[3]. Centralized cloud servers and platforms consume a lot of processing, computational and bandwidth resources. Edge computers are localized data centers built for storage and processing at the point where they’re needed.

4. Multi-cloud environments

A multi-cloud environment is when 2 public clouds are being operated by an organization in tandem. Meaning, organizations can use 2 or more cloud solutions by different cloud solution providers. Using multi-cloud solutions helps companies in enhancing data redundancy and business expansion. A study by Accenture found that 93% of all companies are going for a multi-cloud strategy and an increase in multi-cloud adoption is expected in 2022 ^[4].

5. Artificial Intelligence in cloud computing

Artificial Intelligence (AI) and cloud computing will together leave a huge mark on the world. The evolution and advancement of the two technologies are interconnected and this will become clearer in 2022 (and beyond). Cloud computing technologies and services are making AI more accessible to businesses around the world that once would have not been able to afford these technologies.

With the help of the cloud, companies can now integrate Artificial Intelligence into their day-to-day business operations. Disruptive AI technologies like machine learning, big data, and knowledge graphs are features and functionalities that are AI-enabled.

6. Containerization

Open-source systems for container orchestration, like Kubernetes by Google, provide users with the rise of containerized apps, which will continue to emerge in 2022 at an enterprise level. These “containers” bring the advantages of virtual machines, merging the forces of a self-contained operating system to offer a seamless performance across multiple machines.

In cloud settings, container portability allows performance consistency across the entire organization and resource usage distribution. With containerization, the user also has increased access to tracking the difference between containers and rolling back as and when needed.

Want to leverage our expertise in cloud computing? Reach out to us today and get a free assessment of your current cloud infrastructure.

Sources

[1] International Data Corporation (IDC) “Worldwide Whole Cloud Forecast, 2021–2025: The Path Ahead for Cloud in a Digital-First World” (2021) [Online] Available from: https://www.idc.com/getdoc.jsp?containerId=US47397521 [Accessed December 2021]
[2] BCC Research (2018) “Hybrid Cloud Technologies: Global Markets Through 2022” [Online] Available from: https://www.bccresearch.com/market-research/information-technology/hybrid-cloud-technologies-markets-report.html [Accessed December 2021]
[3] Miltz, K. “Market size for edge computing worldwide 2018-2025” (2021) Statista [Online] Available from: https://www.statista.com/statistics/948762/worldwide-edge-computing-market-size-forecast/ [Accessed December 2021]
[4] Accenture (2020) “Accenture-The-Cloud-Imperative-Software-Platforms-Industry.pdf” [Online] Available from: https://www.accenture.com/_acnmedia/PDF-139/Accenture-The-Cloud-Imperative-Software-Platforms-Industry.pdf [Accessed December 2021]