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The global managed services market is poised for rapid and sustained growth, with projections from Credence Research indicating a compound annual growth rate (CAGR) of 14.5% from 2024 to 2032. The market is expected to grow from USD 335.3 billion in 2024 to over USD 990 billion by the end of the forecast period, as organizations increasingly seek third-party expertise to manage complex IT operations, optimize costs, and strengthen cybersecurity defenses. According to Credence Research, several converging trends are fueling this expansion. The growing intricacy of IT infrastructures - driven by technologies such as artificial intelligence (AI), cloud computing, machine learning (ML), and the Internet of Things (IoT) - has outpaced the capacity of many in-house IT teams. As a result, businesses are turning to managed service providers (MSPs) to help maintain performance, ensure seamless integration, and enable scalability across multi-cloud and hybrid environments. Operational efficiency and cost optimization remain core drivers of demand. By partnering with MSPs, organizations can convert capital expenditures into more predictable operational costs, reduce internal workloads, and gain access to automation, analytics, and 24/7 monitoring services. Credence Research emphasizes that this shift allows companies to focus internal resources on innovation and core business priorities while relying on managed services to maintain IT agility and uptime. Cybersecurity, Talent Shortages The report also underscores the accelerating role of cybersecurity in driving managed services adoption. With cyberthreats like ransomware, phishing, and advanced persistent threats (APTs) on the rise, many organizations are prioritizing managed security services to protect sensitive data and maintain regulatory compliance. Credence Research notes that MSPs offering end-to-end security - spanning threat detection, incident response, firewall management, and data protection - are becoming indispensable as organizations grapple with an increasingly volatile threat landscape. Talent shortages are compounding the issue. The demand for skilled IT professionals in AI, cybersecurity, and cloud management continues to outstrip supply, creating operational gaps that MSPs are uniquely positioned to fill. By outsourcing to MSPs, companies gain access to expert personnel without the long-term burden of recruitment and training - an especially appealing proposition in today’s tight labor market. Challenges for MSPs Despite the optimistic outlook, Credence Research highlights several ongoing challenges for MSPs. Chief among them is the need to stay ahead of evolving cyberthreats. Given that MSPs often manage multiple client networks, they are high-value targets for attackers. Any breach can have cascading consequences, amplifying both liability and reputational risk. The need for continual investment in advanced security tools, threat intelligence, and compliance controls is not only resource-intensive but critical to maintaining trust. Pricing pressure is another concern. As more providers enter the managed services space, competition intensifies, often driving down margins. Some MSPs, in pursuit of market share, adopt unsustainable pricing models that limit future profitability and complicate contract renegotiations. Credence Research warns that unless pricing structures evolve to reflect value delivered, MSPs risk long-term financial strain. Scalability is also a key hurdle, particularly for smaller providers. Rapid client growth, service diversification, and the need to integrate with legacy IT systems can strain technical and human resources. Poor demand forecasting and inefficient resource allocation can lead to slow response times and diminished service quality. In terms of compliance, managed service providers must continually adapt to a shifting regulatory landscape. Regional and industry-specific mandates such as GDPR, HIPAA, and CCPA require MSPs to implement localized data storage and processing practices. This adds complexity and cost, especially for providers offering global services. Strong Market Outlook Despite these headwinds, Credence Research maintains a strong market outlook. The increasing reliance on managed services - particularly in areas such as hybrid cloud management, data center outsourcing, and managed security - offers long-term growth opportunities. Businesses that strategically partner with MSPs are likely to achieve better operational resilience, faster digital transformation, and improved focus on strategic initiatives. For organizations navigating digital complexity and IT transformation, the managed services model presents a viable path forward. As Credence Research concludes, the ability of MSPs to offer scalable, secure, and cost-effective solutions will remain critical in helping enterprises adapt to the demands of a connected and data-driven world.

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OTAVA, a U.S. provider of secured and compliant multi-cloud solutions, has officially relocated its corporate headquarters from Ann Arbor, Michigan, to Indianapolis, Indiana. The move marks a strategic shift for the company, aligning its operations more closely with a region that is fast gaining prominence as a hub for cloud computing, cybersecurity, data services, and artificial intelligence. The decision reflects OTAVA’s long-term presence in Indianapolis and its growing integration within the city’s dynamic technology ecosystem. CEO TJ Houske noted that the relocation is both a logical progression and a springboard for future expansion. “We’ve had a significant presence here for many years, which provides us with a great starting point for forming new alliances, growing our network, and increasing our exposure on a regional and national level.” He also pointed to recent momentum from partnerships with Indianapolis-based companies like Scale Computing as further validation of the city’s importance in OTAVA’s strategic roadmap. Originally founded over 30 years ago as Online Tech in Ann Arbor, OTAVA has evolved significantly, emerging as a modern cloud services provider focused on data protection, compliance, and resiliency. With operations spanning the United States and Europe, the company’s decision to center its headquarters in Indianapolis was influenced by multiple factors, including a robust local tech talent pool and active relationships with industry organizations such as the Indiana Chamber, TechPoint, and the Indiana Hospital Association. Digital Innovation in the Midwest The company already maintains a Tier 3 data center in downtown Indianapolis, serving a broad local customer base. With the move, OTAVA plans to expand its presence further, growing its headquarters office and consolidating key teams in technical operations, business development, marketing, and data center management. This will enable the company to strengthen ties with the community and deepen its commitment to the region. TechPoint, a central voice for Indiana’s tech sector, welcomed the news. “We are thrilled to welcome OTAVA to Indianapolis, where they will continue to help shape the future of the digital innovation economy in the Midwest,” said Ting Gootee, president and CEO of TechPoint. “OTAVA provides vital cloud, data security, and protection services that businesses more than ever need.” OTAVA’s service offerings include edge computing, advanced data security, and customized multi-cloud environments designed for scalability, compliance, and reliability. The company emphasizes a human-centered approach, tailoring solutions to the unique needs of each client while maintaining strict standards for data privacy and operational continuity. By repositioning its headquarters in a fast-growing tech corridor, OTAVA aims to enhance its role in driving secure digital transformation across sectors.

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Datatonic, a UK provider of cloud data and AI solutions and a ten-time Google Cloud Partner of the Year, has acquired European data engineering specialist Syntio a company based in Croatia. The move would significantly expand Datatonics enterprise service offerings and global delivery capabilities, particularly strengthening its position in high-demand areas such as data ingestion, transformation, and business intelligence. The acquisition of Syntio, recognized by the Financial Times as one of Europes fastest-growing companies for three consecutive years, brings a new depth of technical specialization to Datatonics portfolio. Syntios customer base, which includes telecommunications companies, central banks, and major retailers across Europe, complements Datatonics expanding roster of global clients. By integrating Syntios engineering expertise with Datatonics leadership in AI and cloud-based solutions, the combined company is poised to offer the broadest range of high-impact, end-to-end data services in the market. Financial terms of the acquisition were not disclosed. For Datatonics customers, the merger would mean enhanced capabilities at a time when organizations are increasingly seeking comprehensive solutions for cloud migration, AI platform development, and advanced data analytics. The companys strength in leveraging Google Cloud technologies to deliver tangible business outcomes positions it uniquely to meet the evolving needs of enterprises navigating digital transformation. Private Equity Backed Scott Eivers, CEO of Datatonic, emphasized the strategic importance of the acquisition. We are thrilled to welcome Syntio to the Datatonic family. This acquisition is a key step in our strategy to expand our global reach and enhance our service capabilities. Syntios talented team and specialized expertise will be invaluable as we continue to deliver innovative data and AI solutions to our clients," said Mr. Eivers. Davorin Cetto, CEO of Syntio, highlighted the advantages for their combined client base, noting that the scale, geographic coverage, and shared expertise will offer customers the best technological options as they move toward a cloud-centric, AI-driven future. Datatonics growth trajectory is supported by Perwyn, a European private equity firm known for its hands-on investment approach. Mike Rothwell, Investment Manager at Perwyn, described the acquisition as a key milestone, noting that Syntios integration would expand Datatonics capabilities across generative AI, machine learning, and advanced data analytics. Mr. Rothwell reaffirmed Perwyns commitment to supporting Datatonics ambition to solidify its status as a market leader in data and AI consultancy. With a reputation built through deep collaboration with Google Cloud, Datatonic remains at the forefront of the cloud data and AI consulting space. Its solutions, which span cloud data migration, marketing analytics, and generative AI applications, are designed to drive ROI and operational optimization for industry-leading organizations. With Syntio's technological expertise added, Datatonic would be better positioned to provide additional value to companies trying to grow and innovate in the rapidly changing digital market of today.