According to the 2014 IT Service Provider Benchmarking Survey, cloud technology is the main driver for IT service providers. For the second year in a row, cloud apps were cited as the number one technology changing clients expectations.
Keeping pace with changing technology and client demand for cloud services continues to be a key component to success for service providers. According to the report, “Client renewals slipped slightly in the 90%+ category, which could serve as a reminder that in growing and dynamic markets, it’s even more important to watch for operational red flags and respond swiftly so as not to lose market share and revenue opportunities.” This mirrors the opinions on cloud computing Gigaom researcher Ashar Baig shared in a recent WHIR interview.
The demand for cloud services may be driving company revenues. Service providers reported an increase in revenues of 15-25 percent in 2014, up from just 5-15 percent in 2013. With increased revenue and demand for new services comes the need for more employees. Ninety-eight percent of respondents reported hiring in 2014.
Cloud services continues to be a strong area of growth for cloud and web hosting providers. Companies looking to increase revenue, client base and customer satisfaction should consider adding or increasing cloud based services.
Another area of growth to consider is security. This report cited Tech Pro Research numbers that found 41 percent of IT professionals planning to increase their security budget in 2014. WIth attackers focusing their attention on cloud, it’s an area where service providers can provide strategy and support to customers.