By Mariah West, Director of Global Marketing, Zerto
Bain & Company expects SaaS subscriptions to grow 18 percent by 2020, and since SaaS handily beats IaaS and PaaS for cloud spend, that’s a significant number. Investments in PaaS are expected to increase by 56 percent in 2019, according to KPMG. And Gartner predicts the IaaS market will reach $72.4 billion worldwide by 2020.
Goldman Sachs just released a survey of CIOs that indicates 18 percent of workloads are now running in the public cloud; that number should increase to 34 percent in three years.
Given this level of cloud momentum, many MSPs are finding themselves at a major fork in the road. Do they transition their businesses to a CSP model or do they partner with or acquire a CSP?
Fortunately, the choices aren’t quite so extreme.
The skills that made you successful should enable you to remain competitive. Cloud is complex. Confusions around lock-in, data governance, unplanned downtime, privacy and security, plus a plethora of provider choices, will keep partner expertise in demand. Last year, RightScale’s State of the Cloud Survey reported that a business using the cloud would access at least six different clouds from multiple vendors and run a blend of private and public clouds. The future is likely multicloud, and you certainly have customers in desperate need of direction.
Partners are by nature customer-first consultants who build technology solutions to support business operations. While you might deliver a SaaS-based product or a cloud service, this doesn’t make you a cloud provider.
CSPs generally have data centers that host, run or replicate data and applications. Probably the most pronounced difference between a typical partner and a CSP is that one is in the business of hosting applications, maintaining servers and storage, and provisioning out services to clients. The other is not. And that’s OK.
Customers are asking how to get to cloud. Equip yourself to answer these questions. How?
The subscription license approach requires sales reps to communicate a different value proposition to customers who may be looking to transition from a capex to an opex model. By keeping these three steps in mind, MSPs can grab a sizeable piece of the CSP market without restructuring.
Mariah West is director of global partner marketing at Zerto.