Abstract

This IDC study provides IDC's forecast and spending for the worldwide managed cloud services (MCS) market across eight major regions for the 2022–2026 forecast period. IDC views managed cloud services as an extraction view of IDC's technology outsourcing services markets involving application management (AM), hosted application management (HAM), hosting infrastructure services (HIS), IT outsourcing (ITO), and network and endpoint outsourcing services (NEOS). For details on the definitions of managed cloud services, see the Market Definition section as well as IDC's Worldwide Managed Cloud Services Taxonomy, 2022 (IDC #US48523822, June 2022). This study also includes advice for providers of IT services, an analysis of key market and industry trends by key managed cloud services markets and regions, key market drivers and inhibitors, and significant market developments.

"Managed SPs, which are competing in the managed cloud services market, are facing an array of significant challenges spanning intensified competition; commoditization of IT, particularly infrastructure; the need to generate business value; and replacement of labor with automation," says David Tapper, program VP, Outsourcing and Managed Cloud Services at IDC. "Ensuring success in the managed cloud services market will require that managed SPs meet business outcomes, embed FinOps as part of multicloud management, position as a general contractor, enable new operating models, create a holistic governance structure, embed value-added professional services as part of managed cloud services, incorporate platforms, prepare for increased competition, and invest in data sovereignty capabilities."

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