Spending on cloud infrastructure exceeds on premise – are growing your cloud business?
Businesses are spending more and more on the cloud – for the first time, expenditure on cloud services and solutions has exceeded spend on on-premise solutions. The trend is inexorable and inevitable. Are you maximising your returns from the cloud?
According to a recent report published by the UK’s Cloud Industry Forum, businesses are now spending more on cloud infrastructure than on on-premise systems, reflecting growing momentum behind transformation and cost-optimisation.
This is a permanent transition. By 2022, it’s expected that the gap in expenditure between on-premise and cloud will have grown even further, with on-premise spend declining by more than 40% from current levels. This reflects the ongoing opportunity afforded by cloud migration – and it’s one that CSPs must do more to capitalise on.
That’s because the ecosystem is broadening and extending to embrace new technologies. Without a solid cloud strategy, CSPs risk being overlooked. However, too many are scratching their heads, wondering where to start. They are trying to take a broad view and, in doing so, diffusing their efforts, with the result that they delay action. Consequently, they are being left behind by competitors and new entrants.
Instead, they should be leading the way, based on core competencies, existing capabilities and new initiatives. The template for action is clear – start with addressing core, existing needs, such as cloud communication and network connectivity optimisation, and build out platform of complementary solutions and backed by best-of-breed partnerships to ease cloud migration and to simplify adoption for organisations that are challenged to choose the right path to the cloud.
CSPs start with a natural advantage. They already have business customers, they already offer them connectivity services, whether mobile or otherwise, and they have an established billing relationship. What’s more, they already have routes to directly reach customers.
So, what’s stopping them? In many cases, it’s a case of uncertainty and too much near-term ambition. Other players recognise that MVPs and continuous iterative innovation drives value – that is, they don’t need to start with a complete offer. CSPs need to do the same.
They should start with what they know and can easily address, such as enhanced business communications services and mobility, and then broaden their cloud offer to meet new needs, for specific verticals and segments. Gintel can help. We can show you how to launch cloud communications services, with true differentiation, allowing you to target the widest range of business customers.
Together, we can build a portfolio of cloud services, which can be the foundation of your cloud business, helping you to secure your share of the cloud service market and allowing you to capitalise on business transformation and cloud migration opportunities.
Take action today – why not get in touch with Gintel to see how we can help you deliver more cloud services for your business customers?