Australia’s managed cloud services market is predicted to reach close to $3 billion in 2022, according to research from IDC.
A report from the research firm predicted that the managed cloud services market will grow from $1.1 billion in 2017 to $2.86 billion in 2022, with a five-year compound annual growth rate of 20 percent.
The growth is expected due to companies’ cloud strategies starting to include more critical workloads, resulting in more challenges associated in maintaining increasingly complex environments.
“While business managers are looking for more agility and/or speed from IT as well as helping increase revenue, IT departments face challenges in achieving project deadlines and SLA (service level agreement) goals,” IDC said.
“Major contributing factors to this trend are the need for regulatory compliance and availability of cloud application development and infrastructure management skills.”
With more companies adopting managed cloud services, IDC added that traditional outsourced managed services have been impacted, as well as the services providers serving that market.
"For services providers competing in the managed cloud services market, it is essential that they align their business with enterprise's buyer segments and requirements, have broad set of technical capabilities, be able to deliver business outcomes and have a strong ecosystem of partners (specifically the public cloud providers)," IDC Australia senior market analyst Prabhitha Dcruz said.
IDC said the industry for managed cloud services continues to evolve, with the combination of large system integrators winning major managed cloud services deals, public cloud providers expanding into managed services for specific solutions, vendors making strategic acquisitions for key talent and industry expertise, channel partners shedding assets to shift business models from being resale-centric, and technology firms intensifying their focus on the managed cloud services as a route to market for solutions.
"Public cloud services provide a fast route to market for ISVs and channel partners with IP that can be the basis for managed services,” IDC Asia-Pacific vice president cloud services Chris Morris said.
“The easy availability of robust IT infrastructure also allows new, non-IT partners to enter the MSP market."