Gartner Information Technology Research

Forecast Analysis: Cloud Managed Services, Worldwide

Published: 25 February 2020

ID: G00465494

Analyst(s): Colleen Graham, Rene Buest, David Ackerman, Sid Nag

Summary

The cloud managed service market is forecast to reach $80 billion by 2024, growing at a five-year CAGR of 17.5% in U.S. dollars. Growth will be driven by organizations demanding agility and support of increasingly complex digital environments.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Legacy Application Management
    • Forecast Assumption: By 2025, 90% of large organizations with legacy applications in the cloud will use external service providers for some portion of management and support.
  • Influencing Factor: Strategic Digital Technology Transformation
    • Forecast Assumption: By 2025, 25% of large organizations in mature economies will engage with MSPs for ongoing support of cloud-based strategic digital technology transformation.
  • Influencing Factor: Cloud-Native Architecture and Operations
    • Forecast Assumption: In mature economies, 60% of large organizations will engage with MSPs for cloud-native architecture and operations by 2025.

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