Are You a Cloud Service Provider? See What Gartner Recommends!
Technology has evolved on a larger scale and is at a matured stage of being part and parcel of every business function.
This gave rise to the rise of technology vendors in the market to meet the ever-growing consumer demands. But that did not suffice the market needs.
This eventually gave rise to the advent of Technology Service Providers (TSPs)!
Leading TSPs have always been active in the early adoption of every new technology to maintain a competitive edge.
Cloud is one technology platform that gave a further boost to TSPs, enabling them to capitalize on the cloud computing demand.
In the offset, major cloud providers such as Amazon Web Services and Azure have been riding high on market dominance with at least 50-60 cloud feature releases a month, leading to thousands of cloud feature sets.
Exactly at this juncture, arose the real question of leveraging the widely-available options – ‘Which to choose from and how?’
Answer lies with ‘Technology Service Providers’
“That’s where consulting and managed service providers can come in to help clients navigate,” says Gartner Research Director Sid Nag.
Gartner predicts the cloud computing and services market will become a USD 300 billion market by 2021.
While the IT services category is poised for a 2-3 % annual growth rate, the cloud growth is expected to be 6 times that rate at around 18%.
“The number of cloud managed service providers will triple by 2020,” says Nag, indicating a positive trend for technology consulting service providers.
Tap the Cloud Demand!
According to Gartner, 36% of IT spending on implementation services is happening cloud-based and 28% of software spending is SaaS-based.
“When it comes to cloud computing, CEOs are speaking with their wallets,” says Nag, terming this as the ‘cloud rush’. Following this rapid expansion phase lies a consolidation period during 2020-23.
At this point, Gartner says TSPs will need answers for three questions:
- Where are the specific growth opportunities?
- How can technology vendors identify the areas of growth for their business?
- How can they capitalize on cloud growth as a whole?
The cloud demand carries along key challenges pertaining to migration and management associated with transfer of apps and infrastructure from on-premises to the cloud.
These include concerns about:
- Migration process
- Priority of apps in migration
- Decision-making on apps to move and hold
- Lift-shift policy or cloud-native strategy
- Public or Private or Hybrid Cloud
These challenges naturally lay down the path for new opportunities for TSPs.
Growth Opportunities for TSPs
“Migration, preplanning and consultation services are growth opportunities for TSPs,” says Gartner.
In the process, they should look at cloud brokerage as a new service offering.
According to Gartner, 16% of cloud budgets are already inclined towards cloud-related services like onboarding.
Considering this scenario, Gartner recommends following growth opportunities for TSPs in Cloud:
- Cloud Migration
- Cloud Preplanning
- General Cloud Consulting
- Cloud Pricing Model
- Data Center Migration services
- Cloud Brokerage Services
“Think about cloud-first when building your product offering — that will be your ticket to success,” recommends Nag, urging TSPs to keep a close watch on the shift towards cloud-only computing.
It’s Time to Act!
Given this growing cloud demand, it’s time for you as a cloud technology service provider to tap on the aforementioned growth opportunities that can offer you a competitive edge.
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