differentiateA recent TechTarget survey showed that while service providers are continuing to invest in conventional infrastructure, many are still slow to adopt more specialized or innovative technologies like cloud orchestration. The article reported:
Similar patterns appeared in response to questions about other specialized or emerging technologies. When asked about their plans for self-service portals, orchestration software and cloud management platforms — all of which are widely discussed in the provider market — about 40% to 50% of respondents said they were evaluating the technologies, while about 20% said they had no plans for any of the three product families. Between 7% and 12% had already bought such products, while about 10% said they were bypassing vendors and building the technologies in-house.
Let’s consider each of the results in more detail:
• 40% to 50% of respondents said they were evaluating the technologies
This is great news that cloud service providers are evaluating the technology, but the initial finding that shows that these organizations are slow to adopt is bad news.
Appropriate evaluation is key to selecting the right solution for your business. You want to avoid a project that is financially resource heavy and long-term, but also is balanced with the right capabilities for your business. You also want a solution that can be customized to your needs and your customers’ needs – regardless of how many variations that might be.
We know from some customer and prospect feedback that they have invested in some expensive products from big brands, that after a year, still have not allowed the cloud service provider to get to market. Alternatively, we also know that in-house development projects can be slow as well. So it is interesting that the survey found:
• about 10% said they were bypassing vendors and building the technologies in-house.
I’d be particularly interested in finding out how long on average these in-house projects are taking, but I don’t believe this was a follow up question by TechTarget. If it’s longer than a few months, these service providers could be missing out on market opportunities which is why it is surprising that the report said:
• 20% said they had no plans for any of the three product families.
The market for service providers is changing and as a result, customers’ requirements are changing. Increasingly they will ask for self-service portals, metering and billing capabilities, and cloud blueprints on their RFPs. So if 20% of the market is not planning to implement self-service portals, orchestration software and cloud management platforms, it begs the question: will these service providers be around in a few years?
The last stat of interest is:
• Between 7% and 12% had already bought such products
My prediction is that this 7-12% will be ahead of the curve and will gain the most traction in the market. They’ll be the ones with the capabilities to differentiate to provide customers with the public cloud services they require to grow their businesses
