AWS Managed Services Market: An Insight On the Important Factors and Trends Influencing the Market

The global AWS Managed Services market was valued at US$ 559.4 Mn in 2017 and is projected to expand at a cumulative annual growth rate (CAGR) of more than 13.0% from 2018 to 2026, according to a new report published by Transparency Market Research (TMR) titled “AWS Managed Services market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” Rise in the number of AWS customers and the increasing importance of AWS Managed Service Provider (MSP) status are primary factors that are expected to boost the market during the forecast period.

For instance, more than 2000 government agencies from various regions are using Amazon Web Services to power the cloud momentum. Moreover, in February 2018, the United States DoD (Department of Defense) signed a US$ 950 Mn cloud agreement with AWS partner REAN Cloud LLC. Additionally, AWS MSP partner status provides an assurance of standard quality service to customers and is gaining significant importance and attention from industry players, which in turn is expected to drive the market during the forecast period.

Limited awareness among customers can hamper the AWS Managed Services market

Numerous existing and potential AWS customers are unaware about the managed services provided by Amazon Web Services or AWS MSPs. Enterprises are not sure how AWS managed services can save their CAPEx or the security benefits it provides. In December 2016, AWS launched AWS managed services for Global 2000 and Fortune 1000 companies with an aim to accelerate cloud adoption and develop single vendor competencies needed to move workloads to the AWS platform.

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Operations services segment is expected to hold a significant share of the market during the forecast period

In terms of services type, the AWS Managed Services market is segmented into advisory services, cloud migration services, and operations services. The advisory services segment is expected to expand at a significant CAGR of more than 15% during the forecast period, owing to the consistently evolving cloud market. However, the operational services segment is anticipated to hold a prominent share of the market during the forecast period, owing to the heavy need of operational proficiency required for optimal functioning of change management, incident management, patch management, access management, and security management.

AWS Managed Services market in North America is expanding at a rapid pace

The market in North America is expected to expand at a considerable CAGR during the forecast period. The factors contributing to the expansion of the market in North America are significant merger and acquisition activities and the expansion of AWS based offerings carried out by leading AWS MS providers in the region. For instance, in November 2017, Rackspace, Inc. completed the acquisition of managed hosting and cloud computing services provider Datapipe.

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Datapipe is a New Jersey, U.S.-based managed, hosting, and colocation services provider across private and public clouds. Additionally, in November 2017, Accenture plc. expanded its AWS capabilities with three new offerings including cloud native development, data centricity, and analytics on AWS, and applied intelligence on AWS through AABG (Accenture AWS Business Group).

Key players such as Accenture plc., DXC Technology Company, Rackspace Inc., Capgemini, and Slalom LLC. are likely to lead the AWS Managed Services market

Accenture plc., DXC Technology Company, Rackspace Inc., Capgemini, and Slalom LLC are some of the major players operating in the AWS Managed Services market, profiled in this study. Various partners are establishing partnerships, and are carrying out strategic expansions to enhance their AWS Managed Services offerings worldwide. For instance, in May 2017, Capgemini launched a digitally enabled iMSC (industrialized Management Services Center) in Chennai, India, and is planning to build a second one in Bengaluru, India, which can have a significant effect on the AWS managed services market owing to the significant population of the country.

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