[July 17, 2018] |
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IDC Finds That Digital Transformation Will Help 85% of Cloud Service Providers Achieve a 19% Increase in Revenue in 2018
A new International Data Corporation (IDC)
survey found that cloud service providers have a high degree of
confidence in their business outlook as a result of very strong customer
demand for cloud services to enable Digital Transformation. This is the
first survey from the recently launched IDC Service Provider Pulse (News - Alert), the
latest subscription service available from IDC Cloud Primary Research
which provides a complete understanding of suppliers, buyers and
consumers of cloud products and services across the entire ecosystem.
"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," said Rory
Duncan, research vice president, Cloud Service Providers at IDC (News - Alert).
"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."
The IDC
Service Provider Pulse 1Q18 Quarterly Summary found that:
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Cloud service demand due to Digital Transformation is outpacing
supply, with service providers ramping up their investments in new
offerings to cater for their client's requirements for new
infrastructure, application, managed and professional services in the
cloud.
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Security is the most important consideration for 38% of cloud service
providers to achieve their business goals in the next two years, while
Security Services will account for the largest increase (23%) in new
cloud service investment.
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Maintaiing control of their own IT is a key business strategy for
cloud service providers with 64% planning to increase their level of
spend on software, device, and/or IP development to better compete.
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Software Specialists will increasingly become Services Specialists
over the next two years, creating offerings usually associated with
managed service providers, cloud service providers, hosting firms,
telco providers, and outsourcers/systems integrators.
"It's clear that the 'long tail' of Tier 2 and Tier 3 (News - Alert) service providers
is driving growth in emerging service opportunities and regional
markets," said Michelle
Bailey, group vice president, general manager and IDC Research
Fellow for IDC's Cloud,
Datacenter
and Digital
Transformation services. "We have learned that over 60% of these
providers' client base consists of organizations creating new products
or markets as well as those reinventing their businesses - and they need
to invest in infrastructure and services to achieve this."
The IDC Service Provider Pulse is a quarterly survey using primary
research from insights provided by IT business leaders and Line of
Business executives with knowledge of their service strategy. The Q1
2018 findings are based on a May 2018 online survey of 500 respondents
across North America, EMEA and Asia/Pacific. The IDC Service Provider
Pulse is part of IDC's Primary
Cloud Research product line that also includes CloudView, SaaSView,
IaaSView, PaaSView and the Developer, and Managed CloudView surveys.
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter (News - Alert) at @IDC
and LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005138/en/
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