South African Managed Services Market

South Africa's managed services market is at its infancy stage and is seen by service providers as a vibrant and exciting market with endless opportunities. There are two value propositions for managed services namely, cost and efficiency. Companies are looking to transform from a capital expenditure (CAPEX) model to operating expenditure (OPEX) model by reducing their Total Cost of Ownership. The recent economic downturn and the constant pressure on business environment by advanced and fast evolving technology has forced companies to develop IT strategies to reduce costs while increasing efficiency and ensuring global competitiveness. Prominent technologies driving the uptake of managed services are cloud hosting and virtualization.