The rapid expansion of cloud technologies in recent years has reshaped how enterprises and IT leaders manage costs, security, compliance, and infrastructure. One of the most notable shifts is the accelerated adoption of cloud infrastructure management platforms that help organizations monitor and optimize resources, data, and applications across cloud environments.
The global cloud managed services market reached $155.73 billion in 2025. By 2034, analysts expect it to exceed $482.93 billion. Enterprises across the world are taking advantage of this shift. Many are reducing expenses by relying on managed services for operations, security, infrastructure oversight, backups, and disaster recovery. You can join this transformation as well and significantly lower your infrastructure costs through managed cloud services.
What are cloud managed services?
Cloud Managed Services are IT services that are delivered and managed by an external provider using cloud-based technologies. Instead of relying on your internal team, the provider handles monitoring, maintenance, security, and support to keep your systems running smoothly and securely. These services can support cloud environments, on-premises environments, or hybrid environments.
This can include:
- Helping users and fixing technical issues
- Managing day-to-day operations
- Monitoring systems for problems
- Improving performance and reducing costs
- Managing budgets related to cloud usage
- Protecting your data and making sure everything follows security rules
- Updating, maintaining, or moving your cloud systems
Why do enterprises need cloud managed services?
Modern enterprises depend on cloud managed services to advance innovation in areas such as AI, ML, and Agentic AI. These services function as a link between the enterprise and its cloud environment. Providers handle tasks related to resource optimization, provisioning, security, and cost control. Research shows that the global cloud-managed services market will grow at a CAGR of 13.6% from 2023 to 2030.
When enterprises shift cloud management responsibilities to managed service providers (MSPs), their internal teams gain more time for strategic work. MSPs also strengthen security controls and compliance practices. This helps protect sensitive information from cyber risks. Daily operations become easier to manage, and enterprises can adopt agile solutions with less friction. Statistics show that 87% of enterprises already work with MSPs or plan to do so.
Top 5 benefits of cloud managed services
1. Cost savings
Enterprises can use tools and resources only when required, which helps control expenses. By choosing cloud-managed services, companies avoid the cost and effort of hiring and training full-time IT staff. They also eliminate large upfront investments. The pay-per-use model allows them to maintain predictable monthly costs and optimize spending more effectively.
2. Assured cloud security
Working with a cloud-managed service provider gives enterprises access to advanced cybersecurity capabilities. These experts reinforce the IT environment to reduce the chances of sensitive information falling into the wrong hands. They implement essential security measures, including encryption, multi-factor authentication, and antivirus protection. This strengthens overall security and improves the ability to detect and respond to threats.
3. Business Continuity and Disaster Recovery (BCDR)
The COVID-19 showed how quickly unexpected events can disrupt operations. Cloud managed services help enterprises stay functional during crises, whether caused by natural disasters, human error, system failures, or cyberattacks. Regular cloud backups keep business data safe and accessible, helping maintain continuity even during major disruptions.
4. Automatic upgrades
Any IT environment becomes outdated without regular updates. Cloud platforms receive frequent improvements, which can be difficult for internal teams to keep up with. Managed cloud infrastructure ensures businesses always have the latest features and security patches. These automatic updates support innovation, strengthen security, and help reduce downtime.
5. Easy to scale
Cloud managed services make scaling effortless. Enterprises can adapt to the growing demand for digital services at any time of year without interruption. The service provider handles the expansion of storage and computing resources. This removes concerns such as slow deployment, expensive hardware upgrades, or limited capacity.
What are the best practices for outsourcing cloud managed services?
1. Be clear about what you are handing over
Outsourcing works best when everyone knows their role. Enterprises should clearly define which cloud tasks the service provider will manage and which responsibilities will stay with internal teams. This clarity helps avoid misunderstandings, reduces risk, and ensures smoother day-to-day operations.
2. Choose a partner, not just a vendor
A cloud managed service provider should feel like an extension of your team. Look for a partner with real experience managing cloud environments similar to yours and a clear understanding of your business needs. Strong technical expertise is important, but reliability, transparency, and problem-solving mindset matter just as much.
3. Make security and compliance a shared responsibility
Handing over cloud operations does not mean handing over accountability. Enterprises should work closely with their provider to align on security practices, data protection, and compliance requirements. Clear processes for monitoring, access control, and incident response help protect sensitive information and build trust.
4. Keep communication simple and consistent
Successful outsourcing depends on open and regular communication. Set clear channels for updates, issue reporting, and escalation. Regular check-ins and performance reviews help address concerns early, keep priorities aligned, and strengthen the working relationship over time.
5. Review performance and improve continuously
Outsourcing cloud managed services is not a one-time decision. Enterprises should regularly review service performance, costs, and outcomes to ensure the arrangement continues to support business goals. Continuous improvement helps maximize value and allows the partnership to grow as needs change.
Final thoughts
Cloud managed services are quickly becoming a game-changer for enterprises that want to stay ahead in a digital-first world. As technology moves forward, handling cloud operations entirely in-house can hold businesses back and create avoidable difficulties. With the right cloud managed service partner, enterprises gain expert support that boosts security, helps them respond to new challenges more quickly, and provides a solid foundation for long-term growth.
Ready to upgrade your cloud journey? Reach out to us at info@xavor.com and discover how we can help your enterprise move forward with confidence.