Last week I was fortunate to join and also host two panels at HostingCon Europe. My main takeaway is whether or not the hosting and service provider community is innovating.
Apps vs. Infrastructure
Service providers haven’t yet innovated enough for infrastructure services. In fact, many are still playing catch up. Some hosters have decided the way to innovate may well be through supporting container technology for packaging of applications, as service providers have a long history of using containers, although with less desirable business models for new customers today.
The Multi-Cloud/Federation/Going it Alone Strategy
Also discussed was how important it is for service providers to identify their key strengths and market niche. We’ve already written a whitepaper on this topic. Equally, service providers need to understand that their customers are looking for a variety of services today. To fulfill this requirement, service providers need to work with partners and even make use of the clouds that once threatened their very business to instead build a more successful organization (have you seen Flexiant Concerto?). This strategy will help service providers provide value and better yet, reinforce customer relationships.
Growth in the Developer Market
We also discussed the significant growth in the developer market. Instead of prolonged IT decision making processes that slow down innovation, software developers are now empowered to innovate quickly. With that new found empowerment comes a demand for automation. Developers want to focus on their core business logic instead of spending time with repeatable operations, such as installing and configuring the development environment. They want to consume components of their applications as-a-service wherever these aren’t part of their core business logic; these include for example database, storage, load balancing, DNS, caching, notification or messaging services.
The smart service providers are already gaining traction by serving this underserved market. Traditional service providers, still focused on legacy apps and just providing infrastructure, need to adapt their strategy.
The market is changing, but the core message is still the same. Service providers must innovate to differentiate. Otherwise, business will be lost to the giants of the industry.
Take a look at our latest product, Flexiant Concerto, to see news ways to innovate and serve an underserved market.