IDC Infographic: Why Managed Service Providers Are Your Essential Business Partner
IDC infographic that describes how customers could get more out of their IT investments by engaging with a managed service provider. Atsisiųsti dokumentą Message from the sponsor
@idc
IDC.com
@idc
Produced by:
IDC #AP242505IG
IDC Custom Solutions produced this publication. This IDC material is licensed for external use and in no way does the use
or publication of IDC research indicate IDC’s endorsement of the sponsor’s or licensee’s products or strategies.
©2024 IDC. Reproduction is forbidden unless authorized. All rights reserved. CCPA
Infographic, sponsored by SAP | January 2025
Future-Proofing Your Enterprise:
Why Managed
Service Providers
Are Your Essential
Business Partner
Digital First is not merely about
deploying the latest technological
solutions or transformation in silos but
also about running a scalable business
model rooted in technology.
Source: IDC’s 2024 Worldwide CEO Survey, February 2024
Source: IDC Application Services Survey, 3Q23
The Future of Digital Infrastructure, 2024: AI-Ready Platforms, Operating Models, and Governance
Future Enterprise Resiliency & Spending Survey, IDC, January 2023
Digital products and
services are expected to
make up about half of an
organization’s revenues
in the next five years”
Evolution of Managed Services in a
Technology-Driven Landscape
Architecting, implementing, operating, and continually
refreshing IT landscapes to support evolving IT and business
models will be challenging.
With inflation and budget pressures mounting, organizations need
to optimize IT spending, especially cloud and application spending.
IDC surveys show that business and IT leaders will increasingly be
pressed to deliver outcomes from the investment in technology.
Cost Pressures Will Continue to Weigh in on IT Spending, Slowing Down the
Transition to Digital Businesses
Rapid advancements in AI: 85% of organizations are
actively evaluating, and about one-third are beginning
to budget for or to implement new generative artificial
intelligence-enabling infrastructure technologies.
Cloud is the de facto operating model: In five years,
organizations expect that more than 51% of their
application portfolios will be hosted on the cloud.
Multicloud is a reality: Most firms (89%) are using a
multicloud approach for a significant portion of their
resources deployed on public IaaS clouds.
Growing application portfolios: 55% of organizations
estimate they will have 100 or more applications in
the next five years.
The Shift to an Outcome-Based Services Model
Will Expand Technology Landscapes and
Increase the Complexity of Managing Them
IDC believes that the current model for consuming IT (cloud Infrastructure,
applications, PaaS, etc.) and business services is shifting to a consumption-driven
model that hinges its value on outcomes achieved rather than a transaction-centric
model heavy on upfront investments.
Managed SPs could manage and execute business functions, own (or lease) the
technology environment, power business function including cloud and application
infrastructure (e.g., licenses, compute, storage, network) and offer pay-as-you-go
services, resulting in end-to-end, pay-as-you-go managed IT and business
services. Managed SPs own the vendor relationships and commitment for business
outcomes, and customers focus on their core businesses.
38% 20%
Learn more at
Managed Service Providers (MSP’s) deliver “as-a-service” offerings across
SAP Business Suite and cloud product portfolio. SAP customers can access
and consume fully managed end-to-end services including transformation
and deployment/migration, partners/providers’ own IP, and other solutions
packaged with SAP cloud solutions – all through one subscription and single
point of contact from their trusted provider/partner.
Due to Increasing Scrutiny of Budgets,
Technology Spending Will be Tied to
Business Outcomes
Organizations Need to Shift to a New Way of
Managing IT to Deliver Outcomes
Enterprises that are progressing on a customer-centric business approach should
consider the following to decide if a fully managed services model is the right
approach to drive further innovation for their businesses.
Congratulations! You have acknowledged that a new way of managing IT
and business services is required to transform your organization into a
future-ready business with the following benefits:
Is a Managed Services Provider Approach
Right for You?
Key Characteristics of a Managed
Service Provider
Managed Service Providers Go Beyond
“Keeping the Lights On” — Evidence Shows
MSPs Directly Contribute to Business And
IT Outcomes
Source: IDC’s 2024 Worldwide CEO Survey, February 2024
Source: Managed Hybrid Cloud Services Buyer Needs and Requirements (IDC #US50639224, May 2024)
Source: IDC Business and Technology Drivers for Managed Services, 2024
69% of tech leaders worldwide are very or extremely
concerned about the growing amount of technology
investments required to remain competitive.
of CIOs say that modernizing IT to align
with the business to achieve better
business outcomes is a top priority.
of CEOs also stressed the growing
expectation from CIOs to drive digital
transformation with the objective of
creating new revenue streams.
A quarter of CEOs surveyed by IDC said that reducing
the total cost of IT by simplifying IT and minimizing
technical debt will be a critical technology initiative for
their organization in 2024.
50% of CEOs are very or extremely concerned about
growing expenditure on the cloud.
Today In two years
Modernizing IT to align with the
business to achieve better
business outcomes
Risk management to strengthen
digital resiliency
Orchestrating digital transformation to
improve business agility
Cost reduction / optimization
Leading our digital transformation with
a major focus on creating new
revenue streams
25%38%
20% 21%
22%19%
14%
10% 19%
12%
Technology
platform partner
Application
support partner
Business
application
vendor
Infrastructure
partner
Business process services/
Transformation partner
Transaction-Centric:
One-To-One Relationship
Partnership Model: An Ecosystem
Structure Focused on Outcomes
MSP focus:
Ownership of vendor management
Negotiations
Tracking risks and SLAs
Defining bussiness and IT outcomes
Customer focus:
Ownership
of vendor
management
Negotiations
Business and
IT outcomes
Tracking risks
and SLAs
Business process services/
Transformation partner
Customer focus is on innovation and
business growth rather than
managing the intricacies of IT and
business services
Infrastructure partner
Business
application vendor
Technology
platform partner
Application
support partner
CustomerMSP partner
• Does your firm struggle with IT sourcing decisions, particularly selecting the right
technology vendors for achieving long-term business goals?
• Are your sourcing teams equipped to manage the procurement and negotiations
with multiple technology and service vendors?
• Does your business team spend significant time in negotiations with technology
partners rather than focusing on core business objectives?
• Does your business team struggle to manage the opex of new IT investments and
find it di cult to procure budget for scaling IT deployments?
• Do your IT and business teams have access to new innovations when they are
introduced into the market?
• Does your IT team struggle to handle the system design and business process
operations (BPO) across technology stacks to deliver the right outcomes from it?
• Is your business capable of optimizing processes, or do you have business
process re-engineering capabilities?
• Do you want your technology partners to take ownership of the business and IT
outcomes of your organizations, build flexible deal structures, and understand
more deeply why you buy a technology solution?
Accelerated
time-to-market
Improved resource
utilization
Optimized costs and
improved productivity
Well-rounded offerings to enable agility and resiliency in infrastructure and
application landscape, including ensuring availability, backup and recovery,
security, and speed of repatriation between cloud environments
End-to-end business process management and transformation services
enabled by cloud (BPaaS) and automation technologies
Data-led approach to cost management and process transformation
Strong governance across complex IT landscapes
Assets and IP to enhance time to value from IT investments
Localization focus for customers operating in specific geographies
Best practices to map IT investments to business outcomes
YES
Embedded security
and compliance
Better business outcomes
and value realization
Unified cloud, networking,
and applications management
Optimized business processes to maximize
e ciency and operational agility
Security
services
Business
process services
App modernization,
migration and
management
Business and IT
consulting services
Process transformation
and change management
Global
capabilities and
local delivery
Data and
AI services
Infra services
Cloud connectivity
and networking
FinOps and governance
Solutions
+
Services
Unified Single-Pane-Of-Glass Management and Sevice Delivery
say MSPs help in creating a
mandate for a new approach to the
management and use of IT.
22%
say MSPs help in restructuring
IT’s financial footprint and shifting
from capital.
22%
of enterprises say MSPs help in
simplifying and standardizing IT
infrastructure and application platforms.
25%
say MSPs increase revenues by
enabling businesses to build new
revenue streams.
28%
say MSPs improve customer
experience by leveraging artificial
analytics and analytics.
25%
Rijo George Thomas
Senior Research Manager,
IT Services Research
IDC Asia/Pacific
@idc
IDC.com
@idc
Produced by:
IDC #AP242505IG
IDC Custom Solutions produced this publication. This IDC material is licensed for external use and in no way does the use
or publication of IDC research indicate IDC’s endorsement of the sponsor’s or licensee’s products or strategies.
©2024 IDC. Reproduction is forbidden unless authorized. All rights reserved. CCPA
Infographic, sponsored by SAP | January 2025
Future-Proofing Your Enterprise:
Why Managed
Service Providers
Are Your Essential
Business Partner
Digital First is not merely about
deploying the latest technological
solutions or transformation in silos but
also about running a scalable business
model rooted in technology.
Source: IDC’s 2024 Worldwide CEO Survey, February 2024
Source: IDC Application Services Survey, 3Q23
The Future of Digital Infrastructure, 2024: AI-Ready Platforms, Operating Models, and Governance
Future Enterprise Resiliency & Spending Survey, IDC, January 2023
Digital products and
services are expected to
make up about half of an
organization’s revenues
in the next five years”
Evolution of Managed Services in a
Technology-Driven Landscape
Architecting, implementing, operating, and continually
refreshing IT landscapes to support evolving IT and business
models will be challenging.
With inflation and budget pressures mounting, organizations need
to optimize IT spending, especially cloud and application spending.
IDC surveys show that business and IT leaders will increasingly be
pressed to deliver outcomes from the investment in technology.
Cost Pressures Will Continue to Weigh in on IT Spending, Slowing Down the
Transition to Digital Businesses
Rapid advancements in AI: 85% of organizations are
actively evaluating, and about one-third are beginning
to budget for or to implement new generative artificial
intelligence-enabling infrastructure technologies.
Cloud is the de facto operating model: In five years,
organizations expect that more than 51% of their
application portfolios will be hosted on the cloud.
Multicloud is a reality: Most firms (89%) are using a
multicloud approach for a significant portion of their
resources deployed on public IaaS clouds.
Growing application portfolios: 55% of organizations
estimate they will have 100 or more applications in
the next five years.
The Shift to an Outcome-Based Services Model
Will Expand Technology Landscapes and
Increase the Complexity of Managing Them
IDC believes that the current model for consuming IT (cloud Infrastructure,
applications, PaaS, etc.) and business services is shifting to a consumption-driven
model that hinges its value on outcomes achieved rather than a transaction-centric
model heavy on upfront investments.
Managed SPs could manage and execute business functions, own (or lease) the
technology environment, power business function including cloud and application
infrastructure (e.g., licenses, compute, storage, network) and offer pay-as-you-go
services, resulting in end-to-end, pay-as-you-go managed IT and business
services. Managed SPs own the vendor relationships and commitment for business
outcomes, and customers focus on their core businesses.
38% 20%
Learn more at
Managed Service Providers (MSP’s) deliver “as-a-service” offerings across
SAP Business Suite and cloud product portfolio. SAP customers can access
and consume fully managed end-to-end services including transformation
and deployment/migration, partners/providers’ own IP, and other solutions
packaged with SAP cloud solutions – all through one subscription and single
point of contact from their trusted provider/partner.
Due to Increasing Scrutiny of Budgets,
Technology Spending Will be Tied to
Business Outcomes
Organizations Need to Shift to a New Way of
Managing IT to Deliver Outcomes
Enterprises that are progressing on a customer-centric business approach should
consider the following to decide if a fully managed services model is the right
approach to drive further innovation for their businesses.
Congratulations! You have acknowledged that a new way of managing IT
and business services is required to transform your organization into a
future-ready business with the following benefits:
Is a Managed Services Provider Approach
Right for You?
Key Characteristics of a Managed
Service Provider
Managed Service Providers Go Beyond
“Keeping the Lights On” — Evidence Shows
MSPs Directly Contribute to Business And
IT Outcomes
Source: IDC’s 2024 Worldwide CEO Survey, February 2024
Source: Managed Hybrid Cloud Services Buyer Needs and Requirements (IDC #US50639224, May 2024)
Source: IDC Business and Technology Drivers for Managed Services, 2024
69% of tech leaders worldwide are very or extremely
concerned about the growing amount of technology
investments required to remain competitive.
of CIOs say that modernizing IT to align
with the business to achieve better
business outcomes is a top priority.
of CEOs also stressed the growing
expectation from CIOs to drive digital
transformation with the objective of
creating new revenue streams.
A quarter of CEOs surveyed by IDC said that reducing
the total cost of IT by simplifying IT and minimizing
technical debt will be a critical technology initiative for
their organization in 2024.
50% of CEOs are very or extremely concerned about
growing expenditure on the cloud.
Today In two years
Modernizing IT to align with the
business to achieve better
business outcomes
Risk management to strengthen
digital resiliency
Orchestrating digital transformation to
improve business agility
Cost reduction / optimization
Leading our digital transformation with
a major focus on creating new
revenue streams
25%38%
20% 21%
22%19%
14%
10% 19%
12%
Technology
platform partner
Application
support partner
Business
application
vendor
Infrastructure
partner
Business process services/
Transformation partner
Transaction-Centric:
One-To-One Relationship
Partnership Model: An Ecosystem
Structure Focused on Outcomes
MSP focus:
Ownership of vendor management
Negotiations
Tracking risks and SLAs
Defining bussiness and IT outcomes
Customer focus:
Ownership
of vendor
management
Negotiations
Business and
IT outcomes
Tracking risks
and SLAs
Business process services/
Transformation partner
Customer focus is on innovation and
business growth rather than
managing the intricacies of IT and
business services
Infrastructure partner
Business
application vendor
Technology
platform partner
Application
support partner
CustomerMSP partner
• Does your firm struggle with IT sourcing decisions, particularly selecting the right
technology vendors for achieving long-term business goals?
• Are your sourcing teams equipped to manage the procurement and negotiations
with multiple technology and service vendors?
• Does your business team spend significant time in negotiations with technology
partners rather than focusing on core business objectives?
• Does your business team struggle to manage the opex of new IT investments and
find it di cult to procure budget for scaling IT deployments?
• Do your IT and business teams have access to new innovations when they are
introduced into the market?
• Does your IT team struggle to handle the system design and business process
operations (BPO) across technology stacks to deliver the right outcomes from it?
• Is your business capable of optimizing processes, or do you have business
process re-engineering capabilities?
• Do you want your technology partners to take ownership of the business and IT
outcomes of your organizations, build flexible deal structures, and understand
more deeply why you buy a technology solution?
Accelerated
time-to-market
Improved resource
utilization
Optimized costs and
improved productivity
Well-rounded offerings to enable agility and resiliency in infrastructure and
application landscape, including ensuring availability, backup and recovery,
security, and speed of repatriation between cloud environments
End-to-end business process management and transformation services
enabled by cloud (BPaaS) and automation technologies
Data-led approach to cost management and process transformation
Strong governance across complex IT landscapes
Assets and IP to enhance time to value from IT investments
Localization focus for customers operating in specific geographies
Best practices to map IT investments to business outcomes
YES
Embedded security
and compliance
Better business outcomes
and value realization
Unified cloud, networking,
and applications management
Optimized business processes to maximize
e ciency and operational agility
Security
services
Business
process services
App modernization,
migration and
management
Business and IT
consulting services
Process transformation
and change management
Global
capabilities and
local delivery
Data and
AI services
Infra services
Cloud connectivity
and networking
FinOps and governance
Solutions
+
Services
Unified Single-Pane-Of-Glass Management and Sevice Delivery
say MSPs help in creating a
mandate for a new approach to the
management and use of IT.
22%
say MSPs help in restructuring
IT’s financial footprint and shifting
from capital.
22%
of enterprises say MSPs help in
simplifying and standardizing IT
infrastructure and application platforms.
25%
say MSPs increase revenues by
enabling businesses to build new
revenue streams.
28%
say MSPs improve customer
experience by leveraging artificial
analytics and analytics.
25%
Rijo George Thomas
Senior Research Manager,
IT Services Research
IDC Asia/Pacific