IT managed services budget allocation North America/Europe 2024

As of 2023, respondents from North America and Europe said that, on average, 12 percent of their company's information technology (IT) managed services budgets in 2024 were expected to be allocated to security and hosting services, respectively. In contrast, respondents reported that data analytics will be allocated an average of only 6 percent of their companies’ managed services budgets.

Information security at the forefront of corporate priorities

IT security services can be segmented into multiple categories, including cloud security, data security, and identity access management. Managed security services refer to the tailored IT security services needed by companies everywhere to protect against cyber threats, ensure compliance with regulations, and safeguard their digital assets. Indeed, cybersecurity has been the leading priority for IT technology initiatives among companies worldwide in recent years. Accordingly, the managed security services market was valued at a staggering 31 billion U.S. dollars in 2023.

Hosting and cloud remain essential to operations

A considerable part of the budget for managed services is allocated to cloud services, which encompass hosting, storage/backup, and infrastructure services. Public cloud spending is expected to generate over 670 million U.S. dollars by 2024. Companies can choose from several cloud computing deployment options, including private cloud, public cloud, and hybrid cloud. Cloud deployments are defined by the deployment’s physical location and the management and access rights to the infrastructure.