Managed Data Center Services Market Size (2024 - 2029)

Managed Data Center Services Market Analysis

The managed data center services market is expected to register a CAGR of 20.5% over the forecast period. According to a recent AFCOM State of the Data Center Industry study, the percentage of respondents with more than 1,000 employees increased by 12 points from the previous year to 54%. Additionally, they observed a fantastic variety of industries in the report from the prior year. Healthcare and pharmaceuticals, education, computer/data processing/IT services, finance/banking/investment, and construction/engineering/architecture are the top five sectors that are represented.

• Enterprises could move away from physical infrastructure owing to managed data center services, enabling overhead cost savings. The cost of owning a data center is considerable, there are many linked devices on the market, and the metaverse concept is just starting to take off as a major element driving industry expansion. It is also expected that data center services will become more popular because they offer businesses a cheap way to expand their IT operations without having to invest in more hardware.
• The market is expanding due to rising cyber threats and the possibility of data leakage. One of the most popular managed services for data protection is replication. One of the most popular managed services for data protection is replication. Cyber hardening reduces attack surfaces and prevents malware from spreading uniformly. Data center security teams eliminate a whole class of threats by hardening software binaries.
• Business continuity and availability are two of the main data center services issues. Applications used by data centers may become inaccessible if there is a provider or WAN outage. Unexpected downtimes are anticipated to have significant consequences, even though a service-level agreement covers the availability of data center services. Additionally, as data center services are a part of cloud computing, they are susceptible to various online dangers. It is expected that data security and availability would hinder industry expansion.
• The COVID-19 outbreak caused the halting of numerous operations in numerous industries and the construction of multiple data centers. Due to social conventions favoring social distance and corporate work-from-home cultures, this had little to no effect on the DCaaS industry. Due to increasing data volumes, numerous businesses were forced to move their entire IT infrastructure to the cloud due to the pandemic outbreak. Many businesses are likely to choose data centers as a service because they have far greater volume and data handling capacity than on-premises data centers.
• A poll of more than 1,400 IT executives in the previous year by Rackspace Technology and Google Cloud found that 51% of them said their infrastructure is currently in the cloud, and 49% said they have plans to move workloads from on-premises infrastructure to the cloud. Additionally, the epidemic raised worldwide data volumes by encouraging more people to use social media and other digital tools. The popularity of data centers as a service is projected to be fueled by the growing shift toward cloud computing. So, the COVID-19 outbreak was good for the market. During the pandemic, the market grew, and this is expected to continue for the rest of the forecasted period.

Managed Data Center Services Industry Segmentation

A managed data center is a type of data center model that is deployed, managed, and monitored by a third-party data center service provider. The services rendered by these types of data centers range from network services to disaster recovery-managed backup. They can be deployed both in the cloud and on-premise. It results in complete hybrid IT management.

The managed data center services market can be divided into four segments: type (managed storage, managed hosting, and managed colocation), deployment type (cloud, on-premise), end-user industry (BFSI, energy, healthcare, manufacturing, retail, and other end-user industries), geography (North America (United States, Canada), Europe (Germany, United Kingdom, France, Spain, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), and Latin America (Brazil).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.