In my two previous post on VPS, I wrote Why Moving to an IaaS Offering will Pay Dividends and Why IaaS will Solve Problems Beyond VPS. This has formed part of a three part series on the topic of VPS and Beyond to highlight:

  1. VPS versus Infrastructure as a Service (IaaS): The definitions, differences and market opportunity
  2. Why IaaS: How IaaS can solve service providers and customers VPS problems and the capabilities necessary to reap these benefits
  3. Transitioning from VPS services to IaaS : Why IaaS is the starting point from which to grow PaaS and SaaS services and a roadmap for delivery

Attempting to grow a service provider business by providing VPS will not offer the future-proofing and revenue opportunities available with the cloud. Instead, service providers must look to deliver a cloud platform that is more beneficial and flexible than existing VPS technologies.

IaaS is only a start

VPS Part 3

Moving to an IaaS type model is a key technical, commercial and cultural step from the traditional world of selling VPS type services.  It isn’t about selling services on a pay as you go (PAYG) basis, rather than a monthly basis. It is actually about moving to a mindset of delivering flexibility to customers to help them solve genuine business problems that offers distinct value, rather than just becoming a sunken IT cost. This approach opens possibilities of delivering additional value added services to those customers and continuing to move up the value chain.

Delivering IaaS is only a start, it is the enablement engine to deliver IT as a service. Users today want a whole range of IT delivered as a service not just infrastructure. You don’t necessarily require IaaS to deliver a range of services, but you do absolutely require a single solution through which users can purchase and consume these services, be it IaaS, PaaS, SaaS or otherwise.  (In future, some of these services may not even be hosted on your own physical infrastructure, but other third parties with which you are working). The potential value  created for service providers by companies moving to the cloud is significant, but actually the majority of that value is offered beyond the IaaS layer. IaaS, though, is used as a key part of the value added services.

Attempting to deliver these kind of services today using traditional infrastructure is simply not possible due to the flexibility and agility that is required. Not all customers today are looking for service providers to provide a full range of services, but there is a distinct growing trend in that direction as everyone looks to the public cloud to deliver what used to be traditional internal IT. As the industry changes, you should be ready to meet these new requirements with value added services relevant to your existing customer base.

Download the final installment of the VPS and Beyond series: Transitioning from VPS services to IaaS to learn how transitioning to IaaS is the starting point from which to deliver and grow PaaS, SaaS and other value added services. Outlined within, we show the market potential and use cases for these services and explain what capabilities are required for this journey.

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