Managed services have transformed from being primarily operationally focused, offering customized services like help desk support, to becoming more strategic in nature. Today, they provide a cloud-like experience that offloads the operational burden of IT infrastructure, applications, and data. This shift allows IT administrators to focus on delivering outcomes that drive business success, rather than just supporting technology.

Research indicates that the global managed services total addressable market (TAM) is projected to reach $113 billion by 2025. This represents a significant opportunity, with 45% of Cisco's product TAM expected to be sold bundled with managed services, making it the largest route to market for Cisco and its partners.

Customers are increasingly seeking managed services due to the demand for outcome-centric value propositions that simplify complexity and reduce operational burdens. Additionally, many buyers prefer to work with services-enabled partners as part of their IT strategies, indicating a trend towards consolidating vendors and focusing on service delivery.