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Analysts Expect Continued Growth in Cloud Space

The cloud industry is booming, and Gartner is forecasting continued growth into 2020; they projected worldwide public cloud revenue to grow 17% in the next year. Even further, within individual cloud services market segments, IaaS is expected to grow more than any other market segment, forecasted at 24% growth year over year for 2020. There’s a few generalizations you can make as to why the market is expected to grow so strongly over the next year, but put simply, most of the strong growth can be attributed to a few specific technologies, like IoT. Over the next year, organizations will be boosting their cloud spend and focusing on resiliency and geolocation. Most importantly, companies are looking for a great customer experience when choosing a cloud services partner to help them achieve their high-level goals.


High Quality Customer Experience


As cloud continues to grow, small-to-medium sized businesses are extremely reliant on their MSPs to deliver the highest possible customer experience. The problem today in most cases is that MSPs have to decide between a local provider with quality customer experience or a major cloud provider with tons of resources - there’s hardly any middle ground. Additionally, customers today are expecting almost 100% uptime which includes the need for rapid responses from a knowledgeable person when things go wrong. Things always go wrong.


You can choose a local provider that will provide outstanding customer service, but they tend to have limited resources and can’t do business outside of their core geography. Most times, choosing a major cloud provider while requiring quality customer service comes at an extraordinarily high cost; in fact, Google just announced newly revised pricing plans to include premium customer support, where the base cost starts at $12,500 per month.


Google is trying to keep up with their competition by gloating their 15-minute support response times with their new pricing tiers, something that others (like Egenera) have been including in their pricing for years.


You can choose a major cloud provider like AWS or Azure, but then you lose much of your control with limited roles for partners, smaller margins or unpredictable pricing. AWS just recently brought Doug Yeum onboard as a new channel chief, and one of his big initiatives revolves around returning value from AWS to ensure long-term partner success. On the surface, this sounds great for AWS partners, but in reality, there is no commitment to help other partners trying to support small data centers or onsite infrastructure, not to mention the lack of any help for software publishers that have a codebase they are trying to run in the cloud without a complete development overhaul.


There’s also the unforeseen costs of doing business with a major cloud provider. History has shown time and time again that the bigger a cloud provider becomes, the more likely it is to be hacked or subject to bad actors. The more widespread an API becomes with countless documentation disseminated across the web, it becomes exponentially easier for anyone with a grudge and some know-how to attack a system’s vulnerabilities.


Plus, by choosing a major cloud provider, you actually increase the risk of losing partners because you’re making it easier for your clients to go directly to the AWSs or the Azures. This practice has become so common, there’s now a “transfer ownership” function within AWS. How many stories have you heard about business being stolen by another partner who had a better discount?


Cloud Adoption is Mainstream


It’s 2020 - people need things faster. They need information immediately. If something is not lightning fast, consumers will look elsewhere for a product or service that will deliver the information they need instantaneously. This fact alone has contributed to major growth in the public cloud space in recent years. Modern applications and workloads require infrastructure that traditional data centers simply cannot meet, making cloud adoption a necessity. Furthermore, tech. refresh and contract negotiations are also the most common catalysts for transitioning to the cloud. The cloud is the way of the future. In many cases, an IaaS solution can provide more capabilities and better availability than you could ever get with a tech. refresh.


According to Gartner, 60% of organizations will be using an MSP’s cloud managed service offerings by 2020, doubling the percentage from 2018. One of the biggest contributing factors to this change is the guaranteed data growth that comes along with the continued growth of SaaS. Even further, IoT developments have been flourishing, increasing the necessity for cloud solutions. We all know about internet-connected devices and systems in our homes, but Gartner cites the explosive demand for IoT endpoints with electricity smart metering and physical security as two of the largest players in this demand.


A Large Cloud Provider Coupled with Quality Experience


It’s obvious that the public cloud market is going to continue its growth for many years to come. So where do you turn when you need the resources of a major cloud provider, but you can’t afford the quality experience that you need in order to sustain your success?


Egenera provides a simplified cloud platform with Xterity that’s big enough to have the resources you need in all major markets worldwide, while providing a high level of service to you as a customer. Egenera is only an IaaS provider. We are not distracted by other lines of business, like retail or ecommerce, nor are we incentivized to gather your usage data.


Egenera’s aggressive pricing allows MSPs to compete with major cloud providers while achieving a higher margin and keeping control of their customers. Xterity Cloud gives MSPs and IT organizations an enterprise level cloud service that is economical, flexible and very simple to use.



About Egenera


Egenera was founded in 2000 and was quickly named as one of the top 10 startups to watch in 2002. Egenera’s Xterity Cloud platform is a global public cloud offering that is built in top tier data centers with leading connectivity providers, with the mission to simplify the consumption and management of IT resources. Xterity’s simplified cloud console allows organizations to get into the cloud without certifications, developers, or system architects.


From their operations in Massachusetts & California, to Japan, the UK, and Ireland, Egenera has established a reputation within the cloud computing industry as a leader in simplified IaaS. Egenera can help organizations large or small achieve their goals by providing 24 x 7 x 365 support and learning the individual needs of your business.


Explore a simplified cloud platform and avoid hours of headaches at Egenera.com.




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