Rising demand for flexibility in enterprises and core businesses is one of the major factors driving growth of the market. Increasing requirement for reliability and scalability is also fueling demand for these services to enable companies to manage their business operations more efficiently. In addition, growing focus on reducing IT costs is also driving demand for cloud managed services.
A private cloud allows augmented data control and decreases risks of data loss. Benefits such as price flexibility, security, and control with regard to private cloud are some factors encouraging organizations to prefer this option. However, organizations can also avail benefits on the public cloud such as low cost and easy configuration.
Cloud managed services enables companies to reduce IT costs as the user company will not require to employ its own IT personnel, or invest much on equipment and servers etc. in-house, which reduces operation costs significantly. Customizations in existing models allow organizations to improve their business operations with flexibility. Moreover, cloud managed services enables organizations to increase productivity and performance of their employees, as it allows them to work remotely or from home, which is not possible with in-house private servers. As a result of these benefits and advantages, adoption of cloud managed services is increasing significantly in small & medium scale enterprises globally.
Some of the major factors restraining adoption of cloud managed services in the need for consistent Internet connectivity, and poor connectivity, particularly in rural and urban areas in emerging economies such as Mexico, India, and some countries in MEA. Other factors include potential security breach or unauthorized access, data privacy, and Internet connectivity.
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