With 2025 fast approaching, the managed services industry is poised to see signifant growth and transformation. According to a recent report by MarketsandMarkets, the managed services business is set to grow to over $511Billion by 2029. 

As organizations look ahead to 2025, process improvement, cost control and mitigating cyber threats remain top of mind.

In this post, we explore some of the key factors driving this surge in demand for managed services.

Artificial Intelligence (AI) & Automation

AI is revolutionizing the managed services business model, enabling providers to: 

• Enhance cybersecurity
• Automate routine tasks
• Detect and respond to issues faster
• Provide predictive analytics

Plus, with the integration of AI into business practices, new lines of business are emerging in the form the prompt engineering and data governance and compliance around the use of AI, resulting in an expansion of the MSP portfolio.

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Cloud Computing

As cloud adoption continues to grow, the need for managed service providers to have a deep skill set in evolving cloud technologies will continue to be important to help businesses:

• Migrate workloads efficiently
• Manage hybrid and multi-cloud environments
• Optimize cloud costs and performance

Cybersecurity

With the continued rise of cyber threats, robust cybersecurity measures will continue to be top priority, including:

• Advanced threat detection and response
• Comprehensive risk assessments
• ​​Implementation of cutting-edge security tools and practices

Specialization and Industry-Specific Expertise

As technology continues to evolve, there will be a greater need for MSPs to specialize in specific industries or solutions, offering more targeted support to their clients and adding greater value.

As previously mentioned, with the integration of AI into how businesses operate, the need for additional, related services will emerge, such as prompt engineering, which is the process of refining AI applications (such as company website chat bots) to provide more relevant outputs that will lead to a more enhanced customer experience.

Another example is FinTech as a Service - the back-end management and administration of financial applications to allow organizations to focus more on core business growth. Another niche but important area for MSP's to be able to provide tailored expertise in, subsequently enhancing their value add.

In summary, these trends highlight some of the driving factors for the growing demand for managed services into 2025 and beyond. Organizations that partner with the right MSPs will be well-positioned to leverage the latest technologies and focus on their core business objectives while ensuring their IT infrastructure remains robust, scalable, and secure. 

At Sentia, we are here to help you with your 2025 priorities to ensure your business is well-positioned to adapt to rapidly-changing market. Our mandate is to allow businesses to thrive while operating their IT environments seamlessly and within their budgets.

If you are looking for additional guidance to prepare an roadmap for your 2025 goals, reach out to us to get a conversation started. 

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