As the cloud market grows, whether public or private, the role of a cloud management service provider (MSP) that connects customers cloud service provider (CSP) is becoming more important.
MSP converts the customer's IT system to the cloud, and supports stable operation and management. It solves complex tasks from information resource management to data transfer.
In addition to existing MSPs such as Megazone Cloud, Bespin Global, and GS Neotek, large IT service companies such as Samsung SDS, LG CNS, and SK C&C have also entered the MSP market.
Mid-sized IT service companies such as Shinsegae I&C, Samyang Data Systems, Woongjin and Nongshim Data System, and information security companies such as AhnLab and Wins also started MSP business.
This trend began with determining that MSP demand will continue to increase as cloud demand increases. As customers adopt hybrid (different types) and multi (diverse) clouds, the need for MSPs increased as operational difficulties increased, such as management demands and security concerns.
The domestic corporate cloud environment is becoming more and more complex. According to a study published by the IBM Institute for Business Value, 80% of enterprises operate two or more different clouds and expect to use nine or more cloud services within two years.
As the demand for MSP increased, sales of existing MSPs also increased rapidly. Megazone Cloud grew from KRW 317.1 billion in sales in 2019 to KRW 511 billion in sales last year. Bespin Global also increased its sales from KRW 84.8 billion in 2019 to KRW 159.9 billion last year.
According to the 'Private Cloud First' policy, 10,000 information systems from government ministries, local governments, and public institutions will be transferred to the private cloud by 2025. The increase in MSP demand in the public sector is also expected to continue for awhile.
Thus, it is interpreted that IT service companies and information security companies decided that new businesses opportunities could be opened up. An unprecedented competition between MSP companies, IT service companies, and information security companies is inevitable in the MSP market. The competition to differentiate MSP services between companies that have secured expertise in each field is al expected to accelerate.
A Samsung SDS official said, “The most basic of digital transformation is the cloud, and the introduction of hybrid multi-cloud is on trend lately. How efficiently the cloud service operates and manages is the key to success. The MSP market is also growing.”
The cloud management and operation service market is expected to grow rapidly. However, MSP profitability is currently low. Some people are already talking about an intense competition with the current condition.
Experts assume that service or competition is essential, and all participants should move in a direction that can further develop the MSP market ecosystem.
By Staff Reporter Hye-mi Kwon (hyeming@etnews.com)