Managed Services Explosion?

Did the Pandemic finally solidify the opportunities for managed service offerings?
Managed Services Explosion?

As any who have been following the pro AV market for the past decade or more knows, managed services has been the holy grail of AV integrators seeking recurring revenue streams from their customers. Whether through remote monitoring, leasing, upgrade path, or basic maintenance plans, successful provision of managed service contracts, sometimes called AV as a Service, had remained elusive. Or at least so it had seemed up until the pandemic came in and disrupted the normal course of business for pro AV and the markets it serves. Since that point, AVIXA market intelligence has heard reports of increasing demand for and provision of managed service offerings to customers by AV integration firms of various sizes. This was in part due to a need for remote monitoring of collaboration solutions when in-person work was less feasible because of health and safety guidelines. In response, AVIXA's industry forecasts from 2021, published under the IOTA brand, estimated an 11% increase in global managed service revenues in 2021 and another 13% forecasted for 2022. Both of those increases exceed the overall industry average growth rates for their perspective years. And yet, managed services is still only predicted to account for 12% of total service revenues in 2022. To be fair, some integrators may bundle services in together, making it hard to separate out from cloud or other integration/installation services. But the question is -- are these estimates aggressive enough? Could we be witnessing a more explosive growth trend for managed services? Weigh in with your comments below!