Managed services are becoming increasingly popular among businesses worldwide, with a projected CAGR of 12% from 2014 to 2019. However, delivering managed services presents significant challenges, including the need for uniform service worldwide and the need for factory-like delivery for mid-sized and small enterprises. Telecom operators have the assets to capture value from this opportunity, but they must articulate their ambition level and playing field to succeed. The managed services transformation lays the basis for competing in the cloud & ICT space.