Why Service Providers Need to Position for Cloud

Cloud Can't Wait

Recently I came across another service provider that is just now thinking beyond IaaS and how to position for the cloud. In 2016, I’m surprised this is still the case especially given the size of the market. By 2017 the public cloud services market is predicted to exceed $244B. There is a huge cloud service opportunity out there and one that you need to position your business to take. Check out our infographic which offers key statistics and advice for taking advantage of this market opportunity.
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The Markets The Cloud Giants Are Serving & Where To Compete

Next Generation App

Cloud service providers need to position themselves against the cloud giants. To do this, it is important to get an understanding of what market these giants are serving.

If you read my previous post on legacy vs. next generation apps, you’ll know that we believe there are two business strategies for cloud service providers:

  • Focus on migrating existing workloads (a focus on legacy apps)
  • Attract new workloads (a focus on next generation apps)

Today, while you consider what might be right for you (hint: attracting new workloads through next-gen app developers offers more advantages), you should also consider the markets your competitors, the giants are serving. Here is our quick key to the market.
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Almost Half of UK Businesses to Make Big Cloud Platform Changes

Are You Selling Your Cloud for Too Little? A whopping 48% of UK businesses expect to make big changes to their cloud platforms in the next 12 months according to a Cloud Computing Intelligence (CCI) article.  If you are a service provider, what would happen if 48% of your business decided to go elsewhere? The article reported commissioned research by Adapt which revealed there is a clear mismatch between what UK businesses need versus what they actually get from their providers. Some results that should worry service providers showed that:

  • 75% of respondents do not feel their cloud provider really understands their business.
  • One in four respondents do not expect their service provider to be meeting their business needs within the next 12 months.

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Where to Find Opportunities in the Cloud? 

Cloud Market

Service providers wanting to enter the cloud market had better get there fast.  The opportunity is huge, and it’s much bigger than what companies normally expect. The great news is that there are many new opportunities pushing the demand for cloud-based services. Here are some areas to consider:

Developing Markets

The developing markets in South America, India, China and Asia are increasing the need for cloud services, in the form of millions of mobile users that need to be served from cloud-based databases. These markets are driving a lot of cloud demand; more than the traditional territories.

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Parallels on Where the Cloud is Headed (if you think you know, you’re wrong!)

Parallels

Parallels’ Director for Cloud Service Provider Partner Program. Joshua Beil, wrote a blog recently entitled “Newsflash: If You Think You Know Where the Cloud is Headed, You’re Probably Wrong”. The blog echoes our sentiments on needing to build a future-proofed cloud platform that can adapt quickly because flexibility is at its core (You can read our blog on future-proofing using the Apple vs. Nokia example).

Read what Joshua had to say:

[Recently, the] renowned venture capitalist Vinod Khosla of Khosla Ventures made a few very profound comments about dealing with the uncertainty of technology. Captured in The Virtualization Practice blog, Khosla’s comments can be summarized as follows:

  • You have to optimize for change and adaptability because you cannot know what you are going to face next year.
  • Customers do not have a clue as to where their businesses are going to go, so begin building the systems now that will allow them to react quickly.
  • Plan not to plan; plan to be agile.

So what does this mean for cloud service providers?

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