Cloud Services Are Ready to Consolidate, Study Indicates

By: Joe Hewitson| - Leave a comment


Cloud services are approaching an interesting point in their relatively young lives. What started as straightforward cloud replacements for self-managed IT functions have snowballed into something much greater. According to a new study by 451 Research, the evolution of everything-as-a-service will likely be the focal point for cloud providers in the near future.

“This spending trend, alongside feedback from providers, indicates there is an appetite for a wider range of bundled offerings from the managed service sector, including systems integrators, value-added resellers and others with service delivery experience,” Rory Duncan, 451 Research’s director for managed services and hosting, says in the press release.

While the current climate of cloud services is very much an a la carte affair, 451 Research believes vendors will soon be judged by their ability to create a cohesive package of managed services. This aspect of channel providers will be even more critical as new cloud services emerge and the sheer number of as-a-service options becomes increasingly daunting.

Evolving Cloud Strategy

The study also notes that the growing dependence on cloud services has led many enterprise organizations to spread their cloud reach too far — resulting multiple offerings from multiple vendors that end up being just as difficult to manage as traditional IT models.

“We see a significant opportunity for technology vendors to partner with service providers to offer higher value, niche and vertical offerings as these services rapidly emerge,” Duncan continues.

Considering that roughly half of the total hosting and cloud opportunity is made up by a combination of managed services and security services, according to the study, the addition of emerging managed services will require a more cohesive strategy.

What this means for businesses is a potential change in cloud strategy. What is now a very siloed experience will merge into an everything-as-a-service model. Similar to consumer-market bundling strategies, this shift will no doubt mark a major milestone in the life cycle of cloud services. Consolidating services should make for an inherently more manageable cloud.

Topics: , ,


About The Author

Joe Hewitson

News Writer

With a degree in Applied Computing Technology and over a decade of service in the IT and Software Development industries, Joe Hewitson has acquired a keen ability to write about emerging technologies and the impact they have on businesses in many different industries. Accompanying his love for all things tech is a passion for writing informed and engaging pieces in a unique and easy to understand voice. Living in the beautiful arms of the Rocky Mountains, Joe is an avid outdoorsman and enjoys running, biking, and fishing.