Cloud Market Trends Say it’s Safe to Jump on the aaS Opportunity Train
As Will Rogers famously said, “Even if you're on the right track, you'll get run over if you just sit there”. In the world of information technology, delivering services via the cloud is the next train barreling down the tracks. It is an ever-expanding, ever-evolving opportunity moving at a remarkable speed. (Hint: that’s why there are so many aaS acronyms out there.)
But even with big players like Amazon, Microsoft, Salesforce.com and Google in the mix, there’s plenty of opportunity for service providers to jump aboard, too. Let’s take a look.
The numbers don’t lie
The worldwide public cloud computing market is expected to grow by 21.4 percent this year, climbing to a total of $186.4 billion. Gartner’s April 2018 report breaks it down as follows:
- Software as a Service (SaaS) is the industry leader, looking at hitting $73.6 billion this year alone and positioned to account for nearly half (45 percent) of total application software spending in 2021.
- Infrastructure as a Service (IaaS) is the fastest growing cloud service, expected to reach $40.8 billion by the end of this year.
- Platform as a Service (PaaS – or Cloud Application Infrastructure Services) is on track to hit $15 billion in 2018, and $27.3 billion in 2021.
Research published by MarketsandMarkets in late February indicate that similar growth is expected for the data protection and recovery solution market specifically. They project a compound annual growth rate (CAGR) of 16 percent for the sector, reaching nearly $120 billion by 2025.
Maybe these projections don’t surprise you. After all, business managers at companies of all sizes know that data powers the bottom line. They rely on the data they generate to both enhance operational efficiency and develop products and services that are finely-tuned to customer preferences.
But such reliance means the stakes are even higher if something goes wrong. Corporate data protection quickly requires a level of expertise, yet business people prefer to focus on what they do best – whether that’s practicing law or medicine or running a retail business. They are more than happy to turn to service providers for solutions.
Cloud data protection is just smart business
In fact, when it comes to cloud computing, business managers see two types of green:
- Money not spent on expensive hardware, equipment and staff, and
- The green light to focus on running and growing their business.
Managers can rest easy knowing they have access to industry specialists who keep up with evolving technologies for them. For example, businesses can scale easily using cost-effective, vetted cloud resources. Gone are the days spent worrying about managing the off-site storage that is essential for a backup plan that follows the 3-2-1 rule.
Getting your BaaS in line
As confirmed by the MarketsandMarkets report, service providers looking to expand their offerings are wise to begin with Backup as a Service (BaaS). It’s an easy sell because the best way to avoid data loss of any type is by creating a secure off-site backup. Such a straightforward solution can also help cultivate a long-term, trusting relationship.
DRaaS for success
Service providers can provide a more personal service than the big competitors, so business managers often rely on them differently. Managers look to their SP for guidance and expect them to ask the important questions that they wouldn’t necessarily think about, such as:
- How long could your business stand to experience downtime without it putting you out of business?
- Did you know that adding disaster recovery to your cloud backup plan lets you achieve an easy, affordable way to ensure data safety and quick IT systems recovery?
Disaster Recovery as a Service (DRaaS) is the practical extension of BaaS and is a big win-win for service providers and customers alike. With a disaster recovery plan in place, a business can maintain continuity. Since DRaaS is an on-demand service, there are no upfront costs. This kind of offering puts service providers in a tremendously valuable position built on trust, earning them loyalty and accessible, new revenue streams.
Take a leap forward, not a leap of faith
Expanding your service offerings into BaaS and DRaaS need not be painful. Just as your customers turn to you for expertise and trust you to deliver the highest-quality cloud solutions, you’ll want the same from your partner. Look for one that’s developed a solution backed by powerful, innovative, proven technology. The platform should be easy to implement both in terms of the solution it delivers for customers (e.g. backup and recovery), and also administratively. It should offer simple licensing and be flexible, allowing you to differentiate with unique service offerings geared toward your own customers.
The cloud-based “as a service” model presents a wonderful opportunity for IT service providers to meet the business needs of customers, while opening new revenue streams for your own company. There are certainly solutions available that can help support such a move, and the right choice can make it both an easy and profitable decision. By differentiating your service offerings and selecting the right platform, you can stand out from the competition – regardless how big they are.