Report finds organizations relying on partners to manage costs, complexity
Enterprises in the United States continue to embrace public cloud services, but many also are relying on service provider partners to help them manage these increasingly complex environments and keep cloud costs under control, according to a study released this week by research and advisory firm Information Services Group (ISG).
The Lowdown: In the report, ISG found that spending in the Americas on Infrastructure-as-a-Service (Iaas) was up 29% in the second quarter of 2018 when compared with the same time the year before. As the same time, spending on Software-as-a-Service (SaaS) jumped 12% year-over-year.
The Details: ISG found a rapidly evolving cloud environment in which enterprises are looking to benefit from the scalability, efficiency, and flexibility that clouds offer, but the size and complexity of public clouds make them difficult to manage and organizations are looking for help in controlling expenses. All of this becomes more of a challenge as enterprises adopt multicloud strategies, where they can face a lack of interoperability between cloud providers.
Added into the mix is the adoption of containers, a technology that makes it easier to move applications into the cloud but also throws on another layer of complexity.
This is where service providers come in, according to the report. Many have been building up the cloud talent in their workforce and using containers in their practices to meet the growing demand. In addition, the managed service partner environment also is evolving, ISG found. Smaller providers are seeing success with unique offerings focused on managing multicloud environments. Also, smaller providers are being bought by larger systems integrators that want to either eliminate competition or gain niche skills or clients.
The Impact: This is all fertile ground for service providers given the rapid adoption by enterprises of both hybrid cloud and multicloud models. Analyst firm 451 Research has found that 57% of organizations are embracing hybrid clouds, while IDC analysts have said that 62% of companies that use public cloud IaaS use more than one cloud provider.
The Buzz: “Service providers are helping their enterprise customers manage costs because they often have more experience managing multi-cloud infrastructure,” said Jan Erik Aase, director and global leader for ISG Provider Lens Research. “They also provide enterprises with a long-term option by creating a roadmap for transitioning to the public cloud.”