The Cloud landscape – an overview

Today, the technology strategy of any enterprise is incomplete without cloud. The cloud adoption conversation has now steered from ‘if’ to ‘when’ and ‘how’. The fact that remains is that cloud is undeniably the most disruptive change that enterprise IT has seen in years. Its multi-faceted value proposition ranges from considerable cost savings to ability of building powerful applications that can scale up to accommodate increased traffic and scale down as the traffic recedes.

The image below is taken from a Microsoft commissioned study through 451 research that shows the response of over 1700 respondents, including SMBs, companies and enterprises, spread across different geographical locations. The respondents rate the extent to which the digital technology will disrupt their industry within next 5 years – most predict very high disruption.

How should service providers reinvent in this digital transformation era to prevent wipeout? 1

With cloud adoption, the enterprises are able to focus more on IT innovation and revenue-centric activities as the cloud reduces the involvement of teams in rote operations like software upgrading and patching.

To drive uniqueness and gain competitive differentiation, more and more organizations are willing to implement digital or online operations for a number of business functions, including customer service or support, sales, marketing and automated internal business workflows, as shown in the image below.

Digital Transformation 2

What’s in there for service providers?

The cloud is now taking the lion’s share in the worldwide hosting and cloud market as shown in the screenshot below. The window of opportunity is wide open for the service providers and they can reap in maximum benefits within next two years, before the market becomes saturated.

WordWide cloud market size

“A majority of businesses are now on-board the digital economy express, but skills, expertise, and partners are lacking, resulting in a key role for service providers in future digital transformation projects”. – 451 research.

Digital Transformation Landscape

This digital transformation has paved the way for service providers to help organizations shift to a cloud platform. The service providers/ technology vendors that organizations would look to for their IT transformation projects include MSPs, ISVs, System Integrators, security service providers, web hosts, VARs, telcos and more.

Service Providers

More than half of the surveyed organizations consider service providers as most important entities for future projects involving digital transformation. Nearly 60% of them seek service providers for cloud solutions’ sourcing, deployment and management and as per the study, would willingly pay over 2x premium for a “one throat to choke” trusted advisor solution.

Cloud Service Providers

The key technologies that are driving business transformation and that service providers need to take note of, are given in the image below. More and more businesses are willing to invest in these technologies for optimizing their business operations.

Digital Transformation3

What are the challenges that service providers need to overcome?

The service providers need to recognize and accept that with digital transformation, there’s a challenge, they need to differentiate themselves from others, they must think how they can provide unique value propositions for customers and how they can go to market quickly. Technology has driven changes and thus created challenges in these three areas today:

1.Business: With the advent of different business models, generation of different revenue streams, and different solutions, products and services, the business scenario is quite different today. 

It’s not anymore about technology, but what can be achieved with it.

2. Customer: The customer persona is hugely different today, his needs, perceptions and expectations are totally different from what used to be there in the past.

3. Competition: The competitive landscape is quickly changing with lower barriers of entry and with suppliers becoming your partners and competitors.

Thus, the service providers need to have a strong focus on business, provide solutions built on cloud technology, like Microsoft Azure and should grow above the market speed.

The image below shows the attributes that enterprises prefer in their partners.

Partner Attribustes

How can you differentiate yourself from the others?

With digital transformation, the business goals of organizations have undergone a huge change as shown in the image below.

The next generation enterprise priorities include speedier time to market with lower risks associated with business and technology, lower costs with improved financial analytics, improved product and service quality with focus on customer convenience and increased revenue.

Next generation business priorities

In order to differentiate themselves, you – the service provider must:

  • Understand the business of its customers.
  • Be the go to solution provider in a particular customer segment.
  • Be the specialist solution provider for specific customer problems and not a general one.
  • Must follow the customer-centric approach and not the product centric- approach: create value proposition by identifying the customer problem, building a solution for it and then connecting the solution to the existing system of the customer and not the other way round, that’s done in the product centric- approach.
  • In order to go to market faster, make your marketing a continuous and ongoing process.

1.Define a coherent brand concept and messaging structure.

2. Roll out right content at the right time to the right people

3. Instead of buying expensive marketing automation platforms, have a continuous plan of go-to-market  activities in place.

How can we help to prepare you for this digital transformation era?

With our +1 partner program, you can sell customized cloud solutions to your customers with full sales, marketing, CRM and technical support. With a readymade website with readily integrated cloud products, you’re ready to sell cloud services quickly and easily.

Partner program

ZNetLive’s time-tested cloud expertise across multiple cloud platforms help you close the deals faster. Our expert team helps you with pre-sales consultancy, set up assistance and migration support, and also provides post-purchase technical support to your end customers.

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If you have any queries, drop them in the comments section.