Image from the TBR Current Cloud Orchestration Market Report. Used with permission.

Cloud Orchestration Provides Business Opportunity for Service Providers: Report

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A report by Technology Business Research Inc. revealed that 70 percent of the market has or will purchase cloud orchestration services in the near future.

The report included responses from 381 IT decision makers to explore market opportunity and competition in cloud orchestration services, also known as services brokerage.

With cloud adoption increasing in general, there may be an opportunity for web hosting and cloud providers to increase revenue by providing not just cloud services but also orchestration. One respondent said they see more value in managed private cloud services: “Some years ago, we weren’t convinced of the value, but that has changed over time…” This perception is supported by a 29 percent increase since 2012 in the number of enterprises using private cloud.

Although private cloud service use is increasing, businesses don’t always see a need for cloud orchestration. Of those surveyed 41 percent didn’t see a need for the service. This is another case in which education is a huge opportunity for service providers to create a new stream of revenue.

Of particular interest to service providers is that the report stated that the benefit in purchasing orchestration services outweighs the benefit of cost savings. It appears companies may be already integrating this trend into their business model, such as OnApp and Interxion just did with the “cloud in a box” solution.

Cloud Orchestration Infographic

Cloud Orchestration Infographic

There a several factors businesses consider for cloud orchestration adoption. Most important is the need to integrate different clouds with 35 percent of respondents reporting this as their first concern. Other factors include integration of clouds across business processes, management of each cloud separately and cloud orchestration of business practices.

Cloud adoption has tended to be in pieces, using components from different companies and vendors to create a customized solution. Many of the discussions the WHIR had with service providers at last week revolved around the idea of making cloud adoption easier for business. As hosting and cloud providers create partnerships and increase offerings to solve the problems of their customers cloud adoption and the need for cloud orchestration will continue to rise.

In addition to the report, TBR has a webinar available on YouTube. According to the webinar, “two thirds of respondents do not use orchestration services, driving vendor opportunities for consulting and orchestration engagements.”

Image used with permission from Technology Business Research, Inc.


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