Skip to main content

Superior Marketing will Define the Cloud Services Market

Expect to see more vendors exit the highly-competitive Cloud market in 2016, due to their inability to clearly differentiate their capabilities. As the cloud computing market matures and buyer preferences evolve, basic cloud infrastructure offerings reach commodity status -- with common technology and similar product features.

When vendor services are virtually identical, buyers will seek to place increasing emphasis on factors that extend beyond the basic product. However, when the internally-focused 'me-too' vendor fails to translate their capabilities into business outcomes, they more than likely will be judged based upon price.

How to Survive the Cloud Wars

According to the latest worldwide market study by Frost & Sullivan, an enterprise buyer's choice of cloud service provider are influenced by criteria that are the primary responsibility of the marketing organization -- including provider cloud pricing, service level agreements and developing meaningful brand equity.

Frost & Sullivan’s latest analysis, entitled "To Win the Cloud Wars, Invest in Marketing, not Technology", examines several service characteristics that shape buyer perceptions of cloud infrastructure services, as revealed in their 2015 Stratecast Cloud User Survey.

In these early days of the hybrid cloud computing era, businesses are still trying to understand how to leverage the cloud model; how it can help solve chronic IT delivery or business process-related problems, but also how it can create new digital transformation opportunities.

As cloud service providers focus their technology investment on higher-value services, it will be up to the marketing department to be sure their substantive message is heard and appreciated by informed buyers.

Cloud Market Development Upside Opportunity

"In our observation, many technology companies continue to underestimate the importance of marketing; instead, relying on their technology research and development organizations to introduce innovations," said Lynda Stadtmueller, vice president at Frost & Sullivan.

According to the Frost & Sullivan assessment, cloud service providers have a huge opportunity to differentiate their services by alleviating some of the known complexity that CIOs and IT managers associate with hybrid cloud computing deployments.

Providing clear information about pricing and SLAs, offering value-added services to help with planning and migration, and providing access to knowledgeable pre-sales consultants are examples of marketing tactics that cloud service providers can adopt to attract and retain savvy enterprise customers.

"The future of cloud will play out not just in the research lab, but also in the marketing department. Marketers will help to redefine how we purchase and utilize cloud-based IT resources," notes Stadtmueller. "To do so, they will need to engage in a continual dialogue with potential buyers -- both following the market (understanding buyer needs and preferences) and driving the market (educating buyers on the unique value of their own services)."

Popular posts from this blog

How to Drive Value Creation from Digital Business

Across the globe, many forward-thinking CEOs and CFOs continue to fund business technology investments that enable meaningful and substantive digital transformations, ahead of their industry peer group. That's why CIOs and other IT leaders must now accelerate the quest for value creation and drive digital growth from those ongoing investments, according to the latest market study by Gartner. "The pressure on CIOs to deliver digital dividends is higher than ever," said Daniel Sanchez-Reina, VP Analyst at Gartner . "CEOs and boards anticipated that investments in digital assets, channels, and digital business capabilities would accelerate growth beyond what was previously possible." Digital Business Market Development   CIOs expect IT budgets to increase 5.1 percent on average in 2023 -- that's lower than the projected 6.5 percent global economy inflation rate. A Gartner survey analysis revealed several ways in which CIOs can deliver "digital dividends&qu

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p