Gartner Research

Cloud Service Providers Must Understand Deployment, Adoption and Buyer Complexity to Leverage Cloud Revenue Opportunities

Published: 13 January 2015

ID: G00271022

Analyst(s): Ed Anderson , Dane Anderson , Fred Ng

Summary

The high growth in cloud service utilization and spending presents significant revenue opportunity for service providers. The opportunity can only be leveraged if service providers endeavor to understand deployment model variations, reach new buyers and respond to customer-driven investment timing.

Table Of Contents
  • Impacts

Analysis

  • Good News: Deployment and Spending for Cloud Services Are Increasing
  • Bad News: CIOs Say It Is Time for a Change in Sourcing
  • Key Challenges Facing Cloud Service Providers

Impacts and Recommendations

  • Plans for cloud deployment models vary over time, which will challenge service providers to deliver cloud services and supporting IT services that meet customer-specific cloud deployment needs at the right time
    • Strategic Aspirations for Cloud Deployment
    • Cloud Deployment Models Vary by Region, Country and Over Time
    • Cloud Deployment Varies for Emerging and Mature Markets
    • Cloud Deployment Varies by Cloud Service
    • Cloud Deployment Varies for SaaS in Application Software Markets
  • Cloud adoption drivers and inhibitors may vary substantially based on role of stakeholders requiring service providers to understand multiple target audiences within a single firm
    • Cloud Services Decision Makers and Level of Involvement
    • Substantial Budget for Cloud Is Outside of IT Budget
    • Different Stakeholder Views on Reasons to Deploy Public Cloud
    • Drivers and Inhibitors for Deploying Public Cloud Vary by Country
  • Understanding and adapting to variations in spending intentions and investment timing for cloud applications and services will enable service providers to more precisely target market-specific customer needs and timing with sales initiatives
    • Organizations Are Making Significant Investments in Cloud Services
    • Spending on SaaS Has Reached Tipping Point
    • Timing of Spending Varies by SaaS Application
    • Cloud Service Provider Selection Criteria
    • Demand and Timing of IT Services for Cloud Computing

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