Menu
​Cloud-as-a-Service market stalls as competitive pressures heighten

​Cloud-as-a-Service market stalls as competitive pressures heighten

Carrier Cloud providers are re-evaluating public Cloud strategies due to the ongoing struggle to gain market share against pure plays and incumbents.

Carrier Cloud providers are re-evaluating public Cloud strategies due to the ongoing struggle to gain market share against pure plays and incumbents, such as Amazon Web Services (AWS), IBM, Microsoft and Google.

Despite carrier Cloud providers generating over $US4.5 billion in public Cloud revenue in 2015, the segment is still dominated by incumbents, particularly AWS and Google, as pricing competition makes pure public Cloud unprofitable without high scale.

Consequently, Technology Business Research findings claim heightened competitive pressures in the public Cloud market will cause Cloud as a Service revenue growth to decelerate through 2020.

“Carriers, including Verizon, AT&T and BT, are de-emphasising public Cloud and are instead focusing on private Cloud and providing network connectivity and professional services,” Technology Business Research Executive Analyst, Michael Sullivan-Trainor, said.

“However, certain operators with strong regional positions, such as Deutsche Telekom and NTT, are keeping public Cloud at the crux of their strategies and are jockeying for top share in their native markets.”

TBR’s Carrier Cloud Market Forecast 2015-2020 also examines the carrier Cloud market within service segments, including IaaS, SaaS, PaaS and BPaaS.

According to findings, IaaS will remain the largest, but slowest growing, segment for carrier Cloud providers through 2020 as enterprises continue to transition their infrastructure to Cloud-based compute and storage platforms.

As a result, IaaS revenue growth will decelerate through 2020, as carrier Cloud providers will struggle to gain market share against pure plays such as AWS that offer broader portfolios at a lower price.

“To compensate for the maturity and competitive pressures within the IaaS market, carriers are expanding their portfolios in other Cloud segments including unified communications, security and business management solutions,” Sullivan-Trainor added.

“Emerging technologies, including IoT and analytics, will fuel revenue growth for Other Cloud services over the next five years.”

Looking ahead, Sullivan-Trainor said carrier Cloud providers will build out new tools, make acquisitions and form partnerships around these technologies to quickly develop use cases and prove business value to the market.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudMicrosoftGoogleIBMamazonTechnology Business ResearchAWS

Featured

Slideshows

Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
Show Comments