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It has been generally accepted knowledge that managing applications is one of the most lucrative areas for managed service providers. Since the early 2000s, MSPs who manage applications enjoy very intimate relationships with their customers and also enjoy very lucrative margins.
With this as a starting point, today's news from Oracle that approximately 80% of applications will be headed to the cloud by 2025. This comes from Oracle co-CEO Mark Hurd. Now, this statement makes perfect sense when you are justifying a massive investment, as Oracle is making, in building out data centers to fulfill demand for cloud computing.
Additional evidence of the growth of managed applications is a new research report from MarkestandMarkets, estimating this market to be worth $2.02 billion in 2017 and expected to reach $5.54 billion by 2022, representing a Compound Annual Growth Rate (CAGR) of 22.4%.
Future of Cloud Applications
Let's assume that Mr. Hurd is correct and the majority of applications will be running in the cloud by 2025 (by the way, I think he's probably right about that prediction), there are still some unanswered questions we must address.