Now that an array of businesses have made initial forays into enterprise-class cloud computing models, many are looking for ways to expand the quality and profitability of their cloud use. A recent trend report released by Constellation Research indicated that the next phase of IaaS cloud market maturation will engender a rise in creative partnerships and efforts to further commoditize cloud services.
One of the significant market movements cited in the report was a continuation of downward price pressure from cloud adopters. As more suppliers and operators pop up in the cloud landscape, there has been a marked rise in the vocal effort to make key cloud services more of a commodity. This follows in line with an overall trend toward the consumerization of information and communications technology (ICT) that has left many sectors feeling the ripple effects.
More partnerships, mergers and acquisitions on the horizon
The report also found that cloud partner programs will continue to proliferate. These valuable business connections enable companies to increase the quality of their own services, as well as become players in the market for reselling IaaS. As more organizations depend on as-a-service models like IaaS, PaaS and SaaS, organizations that take advantage of market demand and become operators themselves stand to benefit. The growth of other as-a-service phenomena, in which providers offer networks, storage and monitoring, among many other services, has given rise to the term XaaS (everything-as-a-service).
As is often the case during the maturation phase of a technological development, businesses feeling more comfortable will engage in further mergers and acquisitions, which the report said will also become more commonplace in the near future. The commoditization of enterprise cloud and IaaS cloud services will also likely increase the drive of many companies to beef up their market presence and be on high alert for potential deals.
"It's important for cloud customers not only to understand the fundamental trends in the IaaS market but also to re-evaluate and formulate their IaaS strategy going forward," stated Constellation Research vice president Holger Mueller. "In this report we offer our customers both – trends in the IaaS cloud provider market and a methodology to formulate the latest cloud strategy."
IaaS cloud rise influenced by cloud ICT needs
Further investment in the enterprise IaaS cloud market is largely driven by increased dependence on the cloud for ICT solutions. A recent report from industry legal advisor LinkLaters identified cloud ICT as providing more opportunities for technology media and technology companies than traditional enterprise IT. The CAGR of the cloud will soon surpass that of traditional ICT management, while IaaS and PaaS are expected to generate nearly a third of new cloud revenues.
The report found that strategic partnerships between cloud service providers and users, as well as joint ventures and M&As, will be essential to stimulating the growth and availability that will satisfy current market demand. Among the key methods to business growth cited by the report will be regional partnerships, more sophisticated service-level agreements and investments in new network infrastructure with future-proof cloud solutions in mind.