Frost Radar: Managed Cloud Services, 2025

A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines

Frost & Sullivan defines managed services as subscription-based services in which a third-party provider contributes technology, infrastructure, and expertise; the enterprise and provider generally share control and oversight of application performance. Early managed services allowed enterprises to offload routine management tasks, but today's complex IT landscape can require expertise that the business does not have in-house. Managed service providers (MSPs) bridge the expertise gap with knowledgeable professionals who work in partnership with the enterprise IT organization to meet business goals.

The market for managed cloud services remains highly competitive, spanning diverse categories of players. Large system integrators continue to expand their cloud-focused offerings, while technology and business services firms leverage cross-industry expertise. Mid-market providers compete by focusing on agility, niche capabilities, and cost-effective solutions.

The rise of generative AI has added another layer of competition, with MSPs racing to integrate AI-driven solutions as enterprise demands evolve. In 2024, competitive intensity escalated, driven by innovation in AI, automation, and data services. To remain relevant, MSPs must offer advanced, differentiated solutions that meet client demands for AI readiness, cost optimization, and accelerated cloud modernization.

Frost & Sullivan analyzes numerous companies in an industry. Those selected for further analysis based on their leadership or other distinctions are benchmarked across 10 Growth and Innovation criteria to reveal their position on the Frost Radar™. The publication presents competitive profiles of each company on the Frost Radar™ considering their strengths and the opportunities that best fit those strengths.