The Amazon Web Services (AWS) managed services market is expected to hit $1.8 billion by 2026, clipping along at a compound annual growth rate of nearly 14 percent, a recent research report predicted.> Related: Top 50 MSPs for Amazon Web ServicesAccording to Transparency Market Research’s AWS Managed Services Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026 report, AWS managed service providers (MSPs) will pay a significant role in the segment’s growth as the number of AWS customers increases.Cloud adoption by some 2,000 U.S. government agencies is also driving the sector’s growth, the researcher said, pointing as an example to the Department of Defense’s $1 billion cloud deal last February with Rean Cloud, a Herndon, Virginia-based AWS MSP. Industry consolidation is also modifying the market, with companies striking new partnerships along with strategic merger and acquisition deals, such as Rackspace’s purchase late last year of Datapipe, to expand their AWS managed services offerings worldwide, Transparency said. For purposes of measuring the AWS managed services market, Transparency segmented it into three service types: advisory, cloud migration and operations. The advisory services segment is likely to expand at a significant CAGR of more than 15 percent during the forecast period, the analyst said, prodded by a need among AWS customers for consulting services to secure optimal functioning and identify workloads for cloud migration. The operations services segment is still estimated to hold a prominent share of the market, however, with an emphasis on operational activities such as ongoing infrastructure operations, access management, security management, change management and incident management, according to Transparency.
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AWS Managed Services Market Forecast: The MSP Cloud Opportunity

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