Skip to main content

Spending on Managed Services Increasing

The U.S. managed services market will grow at a compounded rate of 10 percent over the next five years as growth continues across all segments of the managed services value chain, says a new market study from Insight Research.

The report notes that in today's sophisticated communications environment, full time managed service professionals are in the best position to assist enterprises to realize the full potential of IP networking. IP's vast array of capabilities greatly increases management complexity. The study notes that revenues associated with the managed services market will grow from $28.6 billion in 2007 to nearly $47 billion in 2012.

Insight's newly-released market analysis report entitled "Managed Services in an IP World: New Opportunities for Wireless and Wired Networks 2007 - 2012," contends that carriers, service providers, equipment vendors, systems integrators, and specialist companies will all participate in the growth opportunities provided by this market.

The study differentiates among four primary managed service segments: managed data center services, managed infrastructure, managed LAN services, and managed WAN services.

In addition to the revenue forecasts for these market segments, forecasts are provided for various market subdivisions, including managed IP VPNs, managed security services, managed VoIP, LAN extensions, WLAN extensions, managed hosting and storage, and a number of other significant areas within the managed services domain.

The report also provides Insight’s survey of outsourced managed LAN, managed WAN, disaster recovery and storage management services by vertical industry.

“Because they can offer around-the-clock monitoring of network performance, improved application performance, and predictable service levels, managed service providers are in a unique position to expand their business in an effort to address the growth of this market,” says Robert Rosenberg, Insight’s president.

“The most significant driver may well be the growth in the number of business locations or endpoints that connect to each other across a WAN. When you compare the growth of establishments to the growth of managed network connections, the increasing need for managed services is unmistakable.”

Popular posts from this blog

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...