Skip to main content

Demand Grows for Superior Managed Cloud Services

The rush to move IT applications from on-premises enterprise data centers to public cloud service providers, primarily on the basis of the promise of a low-cost, has once again been challenged by recent market research findings.

In fact, savvy CIOs and CTOs are seeking comprehensive solutions that meet all their expectations, rather than merely a limited subset. Even if it costs more to achieve that goal, the demand for superior hybrid cloud services is gaining momentum across the globe.

As an example, seventy-five percent of respondents to the latest worldwide market study by 451 Research indicate that enterprise IT leaders are willing to pay a premium for enhancements to their server hosting and cloud services.

Cloud Services Market Development

The most desired improvements are guarantees of security (48.7 percent of respondents) and service performance (43.3 percent) with less interest in paying service providers to take on the operational management burden (27.9 percent).

Despite customers citing cost savings as a driver of cloud adoption and using value for money as a metric for evaluating cloud services, 451 Research finds customers are willing to pay extra for cloud and hosting service enhancements. The average premium businesses are willing to pay is around 30 percent.

The highest premium is for enhanced customer service and support (33.3 percent) and the lowest is for the service provider handling operational management (27.9 percent).

Although 451 Research believes higher levels of service will attract those customers willing to pay higher rates, organizations surveyed say that their providers are failing to meet their expectations for service levels in several categories.

As an example, 58.1 percent of survey respondents say that managed services or security services bundled with the infrastructure or application service is an important capability for them. However only 38.8 percent of these respondents say their current vendors meet this expectation.

The largest such gap is the ability to migrate workloads and data from the customer’s data center to the provider’s or another data center, including public cloud. Moreover, 42.9 percent indicate this is important, but only 19.5 percent of these respondents say their current vendors meet this expectation.

Outlook for Cloud Computing Enhancements

"We frequently talk about pricing competition in cloud infrastructure and applications, which leaves many service providers wondering how they can differentiate themselves," said Liam Eagle, research manager at 451 Research.

According to the 451 Research assessment, the good news is that many hybrid cloud service customers tell the analyst that they’re evaluating vendors on total value, rather than cost. That value can reside in services like guaranteed levels of performance, security and support.

"We've found that customers still see shortcomings when it comes to service providers helping them strategize and execute around hosting and cloud," added Eagle. "Service providers focused on adding value should regard these gaps as opportunities they can capture by improving the quality of their own service in specific areas."

Popular posts from this blog

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c