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As the hosted IT services industry continues to undergo significant changes, the service provider (SP) market is rapidly evolving right along with it. This presents service providers with a host of new opportunities as well as a number of challenges that need to be addressed. The new revenue opportunities are significant. According to Tier 1 Research, the current service provider market will grow from $44 billion to $62.5 billion in 2013. This includes managed hosting ($22 billion), cloud services ($3.8 billion), and dedicated hosting ($3 billion). This white paper helps service providers understand the evolving demands on their IT systems and the forces driving these changes so they can benefit from new opportunities in a high-growth industry.