Managed Services Market Outlook

Ronnie Holland

The past year has been very interesting with the emergence of Managed Services gaining more market and mindshare. Our take looking towards 2012 is we will continue to see managed services taking a dominant role. We find that customers are continually looking at how to solve the challenges of managed services and cloud. So, here is a list of predictions (in no particular order).

  • Managed Service Providers will continue to make up their minds regarding cloud solutions. Some will adopt, others will avoid, but to survive 2012 (and beyond) everyone needs to know the issues at stake and have some opinion, both for employees, colleagues and for clients.
  • Managed Service Providers shakeout will slow down. The bleeding has largely stopped and those companies who were ill equipped in 2009 through 2011 have mostly disappeared. Those who are left are relatively strong, capable of lasting for the foreseeable future, and will have options as to what they want to do moving forward.
  • Managed Service Providers valuations will continue to see modest increases but more importantly the low end "bottom feeding" players will cease to be effective. The word is out about what MSP’s are worth and fewer people are willing to sell out for old world pricing or giving services away.
  • Mergers will be a major factor in 2012. As capital funding continues to be sluggish more MSP’s will seek out traditional mergers (as opposed to acquisitions) in order to achieve inorganic growth.
  • Infrastructure will continue to grow globally. Not only in North America but countries like Australia, South Africa, Middle East, and Central/South America will see strong growth in managed services. Cloud advocates, you may need to wait before you see much cloud pickup in these geographic regions; the infrastructure just isn't there yet but they are building it.
  • More vendors will realize the benefit of a pure channel focus and will vigorously challenge even the largest software/hardware vendors who have played both ends. 2012 will be the year the channel begins its rebirth.
  • End-users will need help with managing their IT solutions and infrastructure.

Ronnie oversees Arrow Systems Integration’s Managed Services portfolio. His extensive experience within the Hi-Tech Manufacturing and Distribution Industry helps him advance our strategic direction into the managed services market. Ronnie joined Arrow Systems Integration in 2006 and prior to his current role worked for Nortel Networks as a Director of Product Marketing for nine years. He brings over 30 years of vast experience ranging from Business/Market Intelligence, Sales and Sales Support, Competitive Analysis, Research and Development, Product Marketing, Product Line Management, Distribution/Channel Marketing, Technical Support and Project Management.

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