Cloud managed services are expected to see healthy growth over the next few years, according to a report from Transparency Market Research (TMR) released on Friday. While the market’s vendor landscape is currently fragmented, new vendors are expected to emerge in the coming years, the report found.

Small and medium businesses (SMBs) are starting to adopt managed services to optimize their business offerings, according to the report. This expansion could further encourage vendors to produce more products for these organizations, increasing competition in the marketplace.

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The global market for cloud managed services will grow at a 9.6% CAGR by 2022, the report found, and will reach a market value of $86.4 billion by the end of that same year. Cloud-based security services are predicted to also experience high growth potential, with the increase in mobile data security service adoption within developing companies, the report found.

As for service suppliers, accessibility of strong frameworks will remain at the forefront of concerns, since a continuous web network is necessary for these services, according to the report. Some problems with cloud service growth may arise, though, as simultaneous access from numerous cloud clients could result in a system bottleneck.

Additionally, large loads from different customer access servers may result in power outages, which could disrupt business activities, the report added. Data security and poor availability could prove to be restrictive factors as well, which will likely lead service suppliers to emphasize security features to gain customer loyalty, according to the report.

Check out this TechRepublic article to learn about six cloud-based integrated management services that could transform your SMB.

The big takeaways for tech leaders:

  • The cloud managed services market is expected to reach a value of $86.4 billion by 2022. — TMR, 2018
  • The biggest problem suppliers could face involves data security, so security features should remain a top priority for service suppliers wanting to retain customers. — TMR, 2018