The managed services industry has experienced a massive surge in demand over the last decade, but a new forecast model created by the International Data Corporation (IDC) expects to see a major leap edge in services growth over the next five years
The demand for managed edge services makes sense in the current state of the post-pandemic economy, as many businesses continue to operate in remote or hybrid environments. The need for low-latency services, customer support enhancements, network security, and data management services has created a highly competitive market that hopes to support the evolving global economy.
According to IDC’s forecast, managed edge services revenues are projected to reach $445.3 million by the end of this year, jumping 43.5% from 2020. That same forecast expects the compound annual growth rate (CAGR) for managed edge services to be around 55.1%, demonstrating the spike in demand within the business world.
The forecast also shows that on-premise edge services will likely be the fast growing section, with a CAGR of 74.5%. Service provider edge and CDN follow slightly behind, with CAGR rates of 59.2% and 41.9% respectively.
"Managed edge services represent a significant monetization opportunity for service providers to capitalize on their investment in edge computing," commented Ghassan Abdo, research vice president, Worldwide Telecom, Virtualization, and CDN, IDC. "At the same time, service providers are keenly aware of the potential impact of the edge on their current market position and are watching closely for unforeseen competition from adjacent markets and new disruptors. Technology vendors including network equipment providers (NEPs) and software, datacenter, and networking vendors are vying to shape this market and play a significant role in delivering innovative edge services."
Learn more about managed services improving business functionality by joining MSPEXPO this February in Fort Lauderdale, Florida from February 8-11, 2022.
Edited by Maurice Nagle