ISG says that in the last quarter of 2020, Managed services demand began to recover. The report is up 6 percent year over year. This is the first time the segment exceeded $7B since the fourth quarter of 2019.
Within that segment, IT outsourcing grew 14 percent, and business process outsourcing dropped 27 percent.
Managed services was down 4 percent for the entire year, and IT outsourcing was up 2 percent. ISG’s data skews to larger companies, of course.
Cloud increased 24 percent in the fourth quarter, mostly out of infrastructure as a service.
IDC’s data for IT infrastructure in general is similar, saying 9.4 percent increase year over year in Q3. But, non-cloud IT infrastructure was down 8.3% for the same quarter, and spending on public cloud increased at a greater rate – 13.1%.
Why do we care?
Well, the headline writes itself. There’s money in cloud and managed services, right? The money is moving too. Out of on prem infrastructure and into cloud service. This isn’t earth shattering news, just more of the trend.
Doing what we expect and have been tracking isn’t bad.
Source: Smarter MSP
Source: Channel Life NZ