Managed OpenStack Services Global Market Report 2025

The managed OpenStack services market size has grown rapidly in recent years. It will grow from $6.07 billion in 2024 to $7.16 billion in 2025 at a compound annual growth rate (CAGR) of 18%. The growth in the historic period can be linked to increasing enterprise preference for outsourced infrastructure management, rising investments in cloud focused managed service providers, growing demand for cost efficient data center operations, surge in adoption of subscription based information technology management models, expansion of global digital transformation initiatives among large enterprises, and rising procurement of third party operational support to manage complex workloads.

The managed OpenStack services market size is expected to see rapid growth in the next few years. It will grow to $13.74 billion in 2029 at a compound annual growth rate (CAGR) of 17.7%. The growth in the forecast period can be linked to increasing reliance on external service partners to handle mission critical workloads, rising demand for predictable billing and reduced operational overheads, growing shift toward outcome based service contracts across enterprises, surge in procurement of hosted infrastructure management in emerging economies, expansion of compliance driven outsourcing among regulated industries, and growing preference for sustainability aligned managed operations to reduce energy consumption. Major trends in the forecast period include technological advancements in cloud orchestration frameworks for smoother workload lifecycle management, advancements in automated remediation tools for platform stability, innovations in scalable multi region deployment architectures, developments in zero downtime upgrade capabilities for production environments, research and development in intelligent workload balancing for hybrid deployments, and technological advancements in unified dashboards enabling real time performance visibility.

The growing adoption of cloud based platforms is expected to drive the growth of the managed OpenStack services market going forward. Cloud based platforms are online infrastructures and services that deliver computing resources, storage, and applications over the internet instead of on local servers or devices. Adoption of cloud based platforms is increasing due to their scalability, allowing flexible resource management and cost efficiency. Managed OpenStack services support cloud platforms by providing enterprises with fully maintained, scalable, and secure OpenStack environments, enabling seamless deployment, orchestration, and management of private and hybrid cloud infrastructure while reducing operational complexity and ensuring high availability. For example, in January 2025, according to AAG IT, a UK based IT services company, an estimated 63 percent of small and medium-sized business SMB workloads and 62 percent of SMB data were expected to be hosted in public clouds by 2023, up from 57 percent of workloads and 56 percent of data in 2022. Therefore, the growing adoption of cloud based platforms is driving growth in the managed OpenStack services market.

Major companies operating in the managed OpenStack services market are focusing on incorporating innovations in cloud-native technologies to enhance automation, scalability, and performance. Cloud-native technologies are modern architectures that leverage containerized services, application programming interface API driven automation, and elastic, on-demand infrastructure to enable faster deployment, seamless scaling, centralized operations, real-time monitoring, and improved cost efficiency. For instance, in April 2025, Rackspace Technology, a US based cloud computing and managed services provider, launched OpenStack Flex, a cloud-native, on-demand OpenStack platform designed to simplify enterprise adoption of open-source cloud infrastructure. The solution features API based automation, multi-tenant shared infrastructure, and elastic scaling, allowing enterprises to deploy and scale workloads while Rackspace manages the underlying infrastructure. OpenStack Flex improves operational efficiency, reduces deployment time, and enables customers to avoid vendor lock in while maintaining enterprise-grade reliability and support.

In April 2025, OpenMetal, a US based provider of OpenStack-powered private cloud and managed cloud hosting services, partnered with CloudVantage to deliver scalable cloud hosting solutions across Africa. Through this collaboration, OpenMetal aims to expand its managed OpenStack services footprint by enabling enterprises to deploy dedicated, vendor lock in free OpenStack cloud environments with predictable pricing and full administrative control. CloudVantage is a Nigeria based cloud solutions company specializing in infrastructure as a service and managed cloud hosting for businesses across the African region.

Major players in the managed OpenStack services market are Huawei Technologies Co. Ltd., NTT Corporation, Deutsche Telekom AG, Cisco Systems Inc., Orange SA, SAP SE, Hewlett Packard Enterprise Company, Wipro Limited, Rackspace Technology Inc., OVH Groupe SA, Canonical Group Limited, Mirantis Inc., DreamHost LLC, i2k2 Networks Private Limited, XenonStack Inc., Platform9 Systems Inc., iVolve Technologies Pvt. Ltd., OpenMetal Inc., VEXXHOST Inc., and Aziro Cloud Pvt. Ltd.

North America was the largest region in the managed OpenStack services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the managed OpenStack services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The managed OpenStack services market research report is one of a series of new reports that provides managed OpenStack services market statistics, including the managed OpenStack services industry global market size, regional shares, competitors with the managed OpenStack services market share, detailed managed OpenStack services market segments, market trends, and opportunities, and any further data you may need to thrive in the managed OpenStack services industry. This managed OpenStack services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Managed OpenStack services are offerings where a third party company sets up, runs, and maintains an OpenStack cloud for an organization. They handle tasks such as installation, upgrades, monitoring, security, and troubleshooting so the user can focus on running applications instead of managing cloud infrastructure. By outsourcing the complex backend of OpenStack, companies can smoothly adopt private or hybrid clouds without needing deep in house expertise.

The primary service types of managed OpenStack services are consulting, implementation, support and maintenance, and others. Consulting refers to expert advisory services that assist organizations in planning, designing, and optimizing OpenStack cloud environments to meet their specific operational and business requirements. These services are deployed through public cloud, private cloud, and hybrid cloud models and cater to organizations of all sizes, including small and medium enterprises and large enterprises. The primary end users include banking, financial services, and insurance, information technology and telecommunications, healthcare, retail, government, manufacturing, and others.

The managed OpenStack services market includes revenues earned by entities by providing services such as infrastructure monitoring services, incident response services, security hardening services, network configuration services, application programming interface (API) management services, and multi-cloud integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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