In today’s digital age change and innovation is critical for vendors and service providers to thrive, and often even to survive.
This is true for cloud service providers, as a new IDC survey (IDC Service Provider Pulse 1Q18) can attest.
Cloud service demand driven by digital transformation is changing the delivery of business-oriented solutions. This has resulted in service providers ramping up their investments into new offerings to cater for their client’s requirements for new infrastructure, applications, and managed and professional services delivered via cloud services.
IDC says as a result, Asia Pacific excluding Japan (APeJ) service providers are rapidly jumping ship on their traditional business models and moving to new ideas.
"Cloud service providers around the world are rapidly changing their business models in response to unprecedented customer demand, offering a mix of new cloud infrastructure, application, and managed services as part of an agile investment strategy," says IDC Asia Pacific Cloud Service Providers Research vice president Chris Morris.
"What is striking is not only the pace of transformation, but also the variety of offerings coming to market as a result. From managed cybersecurity to performance optimization, the hosting of complex business applications and hybrid cloud are offering the potential for service integration at point of delivery."
APeJ cloud service providers (including distributors, value added resellers, and system integrators) are dramatically shifting business models to managed services, PaaS & cloud, with just two thirds planning to have the same business model by 2020.
Some of the other highlights from IDC’s survey include: