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Cloud complexity opens door to new type of dealer

Growing choice and complexity in the portfolios of cloud service providers could result in the emergence of cloud dealers with simple fxed price offerings, claims 451 Research.

Its most recent Voice of the Enterprise: Cloud Transformation survey shows that cloud is now mainstream, with 90% of organisations surveyed using a cloud service. Its analysts expect 60% of workloads to be running in some form of hosted cloud service by 2019, up from 45% today, and for 69% of organisations to have a multi-cloud environment.

451 Research forecasts the size of the cloud computing as a service market to almost double over the next fve years, from $28.1 billion in 2017 to $53.3 billion in 2021. Infrastructure software as a service (ISaaS) will account for more than half (57%) of this total.

However, it warns that this growth is likely to be accompanied by greater complexity, pointing out that AWS already has more than 320,000 SKUs, with 53,000 new ones added in the frst two weeks of November 2017.

Dr. Owen Rogers, Research Director at 451 Research, said: “Cloud buyers have access to more capabilities than ever before, but the result is greater complexity. It is a nightmare for enterprises to calculate the cost of computing using a single cloud provider, let alone comparing providers or planning a multi-cloud strategy. The cloud was supposed to be a simple utility like electricity, but new innovations and new pricing models, such as AWS Reserved Instances, mean the IT landscape is more complex than ever.”

451 Research believes there is a market opportunity for cloud dealers that can resolve this complexity and give users simple and low-cost prices – similar to the way consumer energy suppliers remove the complexity of global energy markets.

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