Over the last few years, the adoption of cloud has significantly grown to become a norm among both large businesses as well as SMBs. According to RightScale’s 2019 State of the Cloud Report, 94% of enterprises around the world are using the cloud. Further, Gartner predicts that the global public cloud services market will be worth $331 billion by 2022.
With the growth in cloud adoption, a lot of service providers see opportunities in selling cloud to other businesses. Therefore, more and more of them are entering into the managed cloud services’ business.
According to a recent survey by RBC Capital Markets, the revenue of certified Microsoft Azure channel partners increased by approximately 55% on a weighted average basis, in 2018. These partners are further expecting growth of approximately 50% in 2019.
In addition, Microsoft reported that more than 7,500 partners are joining its partner ecosystem every month. This ecosystem helps the company to generate 95% of its commercial revenue.
These are the stats of Microsoft’s partners alone, which show that CSPs (Cloud Service Providers) are significantly making a profit with the cloud business.
With a number of businesses selling cloud, from the top cloud giants to the service providers to the new entrants, the competition is tough now—both on the technology and the business front.
According to IBM, 85% of organizations already have a multi-cloud strategy. And the remaining ones who don’t use multi-cloud currently, have plans to use it soon. By 2021, around 98% of organizations will be using multi-clouds.
If you are a Cloud Service Provider and are avoiding selling multiple clouds, then you won't be able to take a bigger bite from the cloud business.
It is a requirement for CSPs today to sell bundled cloud offerings so that they can sell more and acquire new customers. This way, you can meet multiple requirements of the customers and can offer them customized cloud offerings.
Since organizations are opting for a multi-cloud strategy, the cloud giants are innovating their cloud services to provide flexibility and freedom of choice to their customers.
These innovations allow organizations to use a set of capabilities from vendors of their choice but make things difficult for cloud service providers or sellers.
