Managed Network Services Market Trends

Growth Drivers

• Rising Adoption of Digitalization in Various Sectors Around the World - There is a 90% participation rate in digital initiatives among businesses, and 88% of senior business leaders acknowledge that digitalization is a priority for their organization. Globally, digital transformation spending is expected to reach USD 6.7 trillion by 2023. Digitalization helps organizations to become more efficient and cost-effective. It also helps to streamline processes, reduce manual errors, and increase productivity. As a result, organizations are increasingly turning to managed network services to help them better manage their networks and ensure smooth operation.
• Increasing Implementation of Modern Campus Networks to Enhance Service Delivery - Campus networks provide an intermediary connection between a LAN and MAN, enabling greater scalability and flexibility. This allows for more efficient delivery of services and better performance due to a larger bandwidth and higher transfer speeds. Additionally, the use of campus networks helps to reduce operational costs, making it an attractive option for businesses looking to maximize their IT budgets.
• An Exponential Increase in Global IP Traffic and Cloud Traffic - It is estimated that global IP traffic for consumers reached 330 exabytes per month by 2022, with a compound annual growth rate of 26%. Among all data centers, 96% of traffic was generated by cloud data centers in 2021. As businesses and organizations migrate more of their operations to the cloud, there is an increased need for reliable and secure networks for transporting data. Managed Network Services offer businesses the ability to outsource their network needs and ensure that their networks are secure and reliable. Additionally, these services can reduce costs associated with network maintenance and troubleshooting, which can be especially beneficial for businesses with limited IT resources.

Challenges

• Concerns about data security and privacy - As more and more businesses rely on managed network services, more sensitive customer and employee data is stored on these networks. This data is vulnerable to cyber-attacks and data breaches, which can lead to both financial and reputational losses for the companies involved. As a result, companies are increasingly concerned about the security and privacy of their data, which has caused demand for managed network services to decrease
• The complexity of network infrastructure
• Rapid pace of technological change requires managed service providers to update their services constantly