Managed Hybrid Infrastructure Services Market - Global Industry Size, Share, Trends, Opportunity and Forecast, Segmented By Service Type (Managed Storage as a Service, Managed Compute as a Service, Managed Disaster Recovery as a Service, Managed Colocation, Managed Network as a Service, Managed Hosting & Others), By Service Deployment (On Premise & Cloud), By Organization Size (Large Enterprise & Small & Medium Enterprises), By End Use Vertical (BFSI, IT & Telecom, Retail, Government & Defense, Manufacturing & Others)and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.89 Billion
CAGR (2026-2031)	9.49%
Fastest Growing Segment	Managed Storage as a Service
Largest Market	North America
Market Size (2031)	USD 11.87 Billion

Market Overview

The Global Managed Hybrid Infrastructure Services Market is projected to grow from USD 6.89 Billion in 2025 to USD 11.87 Billion by 2031 at a 9.49% CAGR. Managed Hybrid Infrastructure Services involve the outsourced administration and optimization of integrated IT environments spanning physical data centers, private clouds, and public cloud platforms. The market expands as enterprises seek to convert capital expenditures into predictable operating costs while ensuring the agility to scale resources for fluctuating demand. Additionally, the technical complexity of maintaining these mixed ecosystems drives organizations to seek specialized external expertise to guarantee continuous system availability, a structural necessity distinct from transient technology trends.

However, the sector faces a significant challenge in interoperability barriers where integrating legacy systems with modern cloud architectures creates security vulnerabilities. Managing compliance across fragmented environments also deters adopters lacking internal proficiency. Illustrating the scale of this reliance, according to 'MSPAlliance', in '2025', 'the global managed services market is about $500 billion and growing at 11 to 14 percent annually'. This reflects the critical role these services play in modernizing enterprise operations despite integration hurdles.

Key Market Drivers

The widening global shortage of specialized in-house IT expertise has emerged as a primary catalyst for the adoption of managed hybrid infrastructure services. As enterprises integrate advanced technologies like generative AI and edge computing into their hybrid architectures, the demand for niche skills has outpaced the available talent pool, compelling organizations to partner with managed service providers (MSPs) to bridge this gap. This deficit is particularly acute in high-growth areas where internal teams struggle to maintain proficiency. According to Nutanix, July 2025, in the 'Financial Services Enterprise Cloud Index', 98% of organizations cited difficulties in scaling GenAI initiatives specifically due to a lack of skilled personnel, underscoring the critical reliance on external providers for operational capability and innovation.

Concurrently, the increasing complexity of managing hybrid and multi-cloud environments is driving market expansion as firms seek to mitigate operational fragmentation. The intricate requirement to synchronize disparate platforms while maintaining security and performance standards has made self-management untenable for many businesses. This challenge is directly translating into commercial demand; according to the Global Technology Industry Association, March 2025, in the 'State of the Channel 2025 Report', nearly six in ten respondents identified technology's growing complexity as the number one factor driving positive demand for channel expertise. This operational burden is further amplified by financial risks, as the global average cost of a data breach reached $4.44 million according to IBM in 2025, reinforcing the necessity for professional oversight.

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Key Market Challenges

The integration of legacy infrastructure with contemporary cloud platforms presents a formidable barrier to the expansion of the managed hybrid infrastructure services market. As organizations attempt to bridge on-premise hardware with scalable cloud resources, technical dissonance between disparate systems frequently results in critical security gaps. These interoperability issues create a fragmented operational landscape where data visibility is compromised, making it difficult for service providers to guarantee the unified security posture that enterprise clients demand. Consequently, businesses hesitate to fully outsource their hybrid environments, fearing that external vendors cannot sufficiently mitigate the risks associated with these complex, non-standardized interfaces.

This fragmentation directly impacts market momentum by increasing the perceived risk of compliance failures. When data resides in siloed environments, maintaining a cohesive audit trail becomes exponentially harder. Illustrating this complexity, according to 'Cloud Security Alliance', in '2025', 'over 54 percent of organizations utilize four or more distinct tools to manage data risks, creating information conflicts that hinder effective decision-making'. This operational disconnect forces organizations to retain control internally rather than trusting managed services, thereby stifling the potential revenue growth of the broader hybrid infrastructure sector.

Key Market Trends

The Mainstream Adoption of Financial Operations (FinOps) Services is fundamentally reshaping how enterprises govern their hybrid estates, shifting the focus from simple cost monitoring to active value optimization. As organizations scale distributed workloads, the lack of visibility into variable cloud expenditures has necessitated a cultural shift where engineering, finance, and business teams collaborate to ensure fiscal accountability. This trend is particularly accelerated by the high computational costs of artificial intelligence workloads, which require precise governance to prevent budget overruns in hybrid environments. Demonstrating this rapid prioritization, according to the FinOps Foundation, February 2025, in the 'State of FinOps 2025' report, 63% of organizations now actively manage their AI spending, a figure that has more than doubled from the previous year. This surge indicates that financial rigour is becoming a non-negotiable component of managed infrastructure contracts, driving providers to embed detailed cost allocation and forecasting tools directly into their service platforms.

Simultaneously, the Implementation of GreenOps and Sustainability-Focused Service Offerings is gaining traction as a critical market requirement driven by regulatory mandates and corporate social responsibility goals. Managed service providers are increasingly tasked with not only optimizing performance but also quantifying and reducing the environmental impact of hybrid architectures, which encompass both energy-intensive on-premise data centers and public cloud resources. This focus involves deploying sophisticated telemetry to track energy consumption and carbon emissions across the IT lifecycle, enabling clients to meet stringent reporting standards. Highlighting the growth of this discipline, according to Flexera, March 2025, in the '2025 State of the Cloud Report', 36% of organizations are already tracking their cloud carbon footprint, reflecting a significant move towards environmentally conscious infrastructure management. Consequently, providers are standardizing sustainability metrics within their service level agreements to differentiate themselves in a competitive landscape.

Segmental Insights

In the Global Managed Hybrid Infrastructure Services Market, Managed Storage as a Service stands out as the fastest-growing segment, propelled by the exponential accumulation of enterprise data and the imperative for scalable, consumption-based architectures. Organizations are rapidly shifting from rigid capital expenditure models to flexible operating expense frameworks to accommodate fluctuating workloads. Additionally, stringent data residency mandates from regulatory bodies, such as the European Union under the General Data Protection Regulation, drive the adoption of managed storage to ensure compliance. This service model effectively resolves the complexity of maintaining secure, high-availability hybrid storage environments.

Regional Insights

North America maintains a dominant position in the global managed hybrid infrastructure services market due to the extensive adoption of cloud technologies by enterprises in the United States and Canada. The region is home to established hyperscalers and service providers, creating a mature ecosystem that supports digital transformation initiatives. Additionally, the need to navigate complex regulatory frameworks compels organizations to engage managed service providers for effective governance and security. This combination of technological maturity and operational requirements ensures North America remains the primary hub for hybrid infrastructure developments.

Recent Developments

• In June 2025, NTT DATA launched AI-powered Software Defined Infrastructure services tailored for Cisco products to modernize enterprise IT environments. These services were designed to support the entire lifecycle of infrastructure management, from deployment to operations, enhancing business agility for global clients. The launch addressed the growing challenge of legacy infrastructure hindering organizational progress and innovation. By integrating artificial intelligence into infrastructure management, the company provided solutions that enabled future-proof workplaces and AI-ready data centers. This development leveraged the company's extensive technical expertise to deliver secure, scalable, and modern digital infrastructure solutions across various industries.
• In November 2024, Kyndryl introduced a new suite of cyber resilience services co-developed with Microsoft to enhance security for businesses globally. These services were integrated into the company's open integration digital business platform, Kyndryl Bridge, to provide enhanced risk and compliance readiness. The offering utilized advanced security technologies to automatically assess and manage compliance across complex hybrid and multi-cloud environments. The collaboration focused on protecting critical assets through identity and access management as well as extended detection and response capabilities, enabling organizations to operate with confidence and support their digital transformation efforts.
• In October 2024, Rackspace Technology signed a multi-year Strategic Collaboration Agreement with Amazon Web Services (AWS) to deliver full-stack cloud and AI services globally. This partnership focused on offering end-to-end cloud advisory, migration, modernization, and generative AI solutions to accelerate customer value across their cloud adoption journey. The agreement included a significant investment to expand the company's Migration and Modernization Center of Excellence, helping clients expedite their migration initiatives. By leveraging this collaboration, the company aimed to support business outcomes for customers through its comprehensive portfolio of hybrid, multicloud, and AI technology services.
• In July 2024, Wipro announced that it was selected by a global automotive supplier to transform its IT infrastructure using a robust hybrid cloud solution. This multi-year engagement involved migrating the client's two primary data centers to the Wipro FullStride Cloud hybrid platform to enhance business flexibility and streamline IT operations. The initiative aimed to standardize and digitize the client's IT ecosystem while ensuring compliance with regulatory requirements. By implementing this hybrid infrastructure, the automotive company sought to adjust its computing capacity based on market conditions, thereby significantly reducing IT costs and supporting sustainable growth.

Key Market Players

• IBM Corporation
• Hewlett Packard Enterprise (HPE)
• Dell Technologies Inc.
• Cisco Systems, Inc.
• Accenture plc
• Capgemini SE
• Wipro Limited
• Infosys Limited
• Fujitsu Limited
• NTT Ltd.

By Service Type	By Service Deployment	By Organization Size	By End Use Vertical	By Region
Managed Storage as a Service Managed Compute as a Service Managed Disaster Recovery as a Service Managed Colocation Managed Network as a Service Managed Hosting & Others	On Premise & Cloud	Large Enterprise & Small & Medium Enterprises	BFSI IT & Telecom Retail Government & Defense Manufacturing & Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Managed Hybrid Infrastructure Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Managed Hybrid Infrastructure Services Market, By Service Type:

• Managed Storage as a Service
• Managed Compute as a Service
• Managed Disaster Recovery as a Service
• Managed Colocation
• Managed Network as a Service
• Managed Hosting & Others

• Managed Hybrid Infrastructure Services Market, By Service Deployment:

• On Premise & Cloud

• Managed Hybrid Infrastructure Services Market, By Organization Size:

• Large Enterprise & Small & Medium Enterprises

• Managed Hybrid Infrastructure Services Market, By End Use Vertical:

• BFSI
• IT & Telecom
• Retail
• Government & Defense
• Manufacturing & Others

• Managed Hybrid Infrastructure Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE