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2022 Predictions: Cloud

Join Practice Manager and Principal Analyst Allan Krans, Senior Analyst Catie Merrill and Senior Analyst Evan Woollacott Thursday, March 10, 2022, at 1 p.m. EST/10 a.m. PST for an in-depth, exclusive review of TBR’s three 2022 Predictions special reports on the cloud market — Cloud Partnerships, Cloud Applications and Cloud Infrastructure & Platforms — each part of TBR’s Predictions special series examining market trends and business changes in key markets, such as cloud, IT services, digital transformation and telecom. 

Don’t miss:

  • Customization becomes the standard for cloud applications
  • Vendors prioritize partner ecosystems in their go-to-market strategy
  • PaaS emerges as the source of differentiation as vendors embrace open hybrid architectures

Mark your calendars for Thursday, March 10, at 1 p.m. EST,
and REGISTER to reserve your space.

Related content:

Top 3 Predictions for Cloud Partnerships in 2022

Cloud partnerships go from important to critical in 2022

Ecosystems will become even more tailored to the attributes of cloud in 2022

The shift to partner-led growth is not a new trend, but we expect it to be further legitimized in 2022. Growth from indirect, partner-led revenue streams have been outpacing direct go-to-market efforts for several years, but indirect revenue is reaching a new level of scale and significance in the market. TBR estimates indirect cloud revenue is approaching 25% of the total cloud market opportunity, which is a significant milestone. For reference, in traditional IT and software, indirect revenue represents somewhere between 30% and 40% of revenue streams. We expect the indirect portion of the cloud segment to surpass that level within five years, approaching half of the market opportunity within the next decade. For all cloud vendors, the combination of short-term growth and long-term scale makes partnerships an increasingly critical element of their business strategy.

Partner ecosystems have been a core part of the IT business model for decades, but the developments around cloud will be different for various reasons, primarily because the labor-based, logistical tasks of traditional IT are largely unnecessary in the cloud model. For cloud vendors and their partners to succeed in growing the cloud market, they both need to be focused on enabling business value for the end customer. Traditional custom development becomes cloud solution integration. Outsourcing and hosting are less valuable, while managed services are far more variable for cloud solutions. To capture this growing and sizable opportunity in 2022, we expect companies will adapt their partner business models and vendor program structures to align with vibrant cloud ecosystems.

2022 cloud partnerships predictions

  • Partners enable growth and stickiness
  • Value-add partners in software development and managed services become the focus in 2022
  • Partner activities will be more important that traditional designations

Send me a free copy of TBR’s Top 3 Predictions for Cloud Partnerships in 2022

Telecom Business Research’s 2022 Predictions is a special series examining market trends and business changes in key markets. Covered segments include cloud, telecom, devices, data center, and services & digital.

Hybrid delivery models, diversified partnerships and expanded portfolios alleviate vendor revenue pressures

Key Insights

Hybrid delivery — Virtual selling and management consulting service delivery replace face-to-face interactions between vendors, clients and partners.

Partnerships — Emerging technologies necessitate more complex ecosystems, pressuring all players in the IT services space to partner differently.

Portfolio expansion — Vendors are establishing applications and infrastructure managed services capabilities to provide design-build-run solutions.

The Management Consulting Benchmark provides key service line, regional, vertical and operational data and analysis for 13 leading management consulting firms. The research program also includes a deep dive into 11 vendors’ management consulting business strategies as well as SWOT analysis.

2021 will bring more demand, more partnerships and more industry innovation to cloud

Join TBR’s Cloud & Software team, Allan Krans, Nicki Catchpole, Evan Woollacott and Catie Merrill, for an exclusive review of our predictions for cloud in 2021, including the lingering impact of COVID-19 on vendors and customers and how they will handle challenges in the coming year. The team will also discuss how cloud demand will not only remain elevated but also take different forms as vendors offer more industry customization and hybrid capabilities.

Don’t miss:

  • How uncertainty will accelerate cloud adoption in 2021
  • How industry clouds will become the norm
  • How partnership models will support accelerated cloud demand
  • How containers will challenge the traditional virtualization model

Mark your calendars for Jan. 13, 2021 at 1 p.m. EST,
and REGISTER to reserve your space.

TBR webinars are held typically on Wednesdays at 1 p.m. ET and include a 15-minute Q&A session following the main presentation. Previous webinars can be viewed anytime on TBR’s Webinar Portal.

For additional information or to arrange a briefing with our analysts, please contact TBR at [email protected].

Channel partner ecosystems evolve to support digital disruption

Over the past several months, TBR has seen increased activity and interest around the topic of channel and alliance strategy across our 12 ICT industry coverage domains. While channel and alliance strategy is a pervasive topic, the intensity and tenor of the questions posed recently signal an increased focus around deploying industry-leading partnering strategies to pursue long-term growth.

Some of the common recent questions we’ve fielded from our clients include:

  • We’ve been partnering with global systems integrators (GSIs) for years, but our relationship in this emerging technology or service area is new. What is the right engagement model for this new area? What revenues can we expect? How do we establish a stronger relationship than our peers?
  • Our competition in this new portfolio area has stronger relationships than we do. How do we develop programs, incentives and recruitment strategies to secure partner engagement?
  • What are the right partners to engage with to achieve our objectives in this area? What type of programs, engagement models, incentives, benefits and management structure will resonate with those partners?

While these questions themselves aren’t entirely new territory, the systemic market forces that underpin them are certainly disruptive to partnering models for many ICT providers. The quote below, from TBR’s 1H18 Cloud Applications Customer Research, speaks to how the economics of cloud and digital IT consumption impacts the role of the services partner in applications deployment:

“Partners are still an integral part of almost every deal we do, but most deployments are no longer $10 million to $20 million to get it installed — now [it’s] just about $1 million. Many companies have shrunk their IT departments over time because of cloud, leading to skills gaps, so partners are so important.”

Senior Director of Procurement, Telecommunications

Partners will continue to fill a critical role for enterprise customers and, by proxy, leading technology companies, but digital disruption will continue to shift how vendors think about partner roles. A few ways we are seeing technology disruption impact vendors’ partner programs and strategies include:

  • Self-developing Partner Ecosystems: Firms are creating formal programs and incentives to encourage partner-to-partner relationship development and joint go-to-market activity (i.e., a marketplace ISV engaging with a reseller to jointly support a customer).
  • Partner Stickiness and Specialization: Leaders use partners as a conduit to specialize by industry, use case or region, and are encouraging partners to expand portfolios and enhance industry and/or solution specialization (i.e., cross-training ISV partners as implementers in an industry).
  • Partner Journeys: Vendors are reconsidering traditional partner tier structures and aligning program tier requirements and benefits to reclassify partners around long-term value opportunity versus purely revenue generation.

I’ll be conducting a webinar on Wednesday, April 17 at 1 p.m. EDT that will dive into these trends and others in greater detail. Click here to register for the webinar. For questions on this or anything else, you can contact me at [email protected].