MSPs Move Toward Becoming Public IaaS Cloud Providers

CJ Arlotta| Mspmentor

Managed services providers (MSPs) are making a move toward becoming public infrastructure as a service (IaaS) cloud providers.

According to a survey conducted by Nixu Software, the current market is “growing rapidly,” where many MSPs are “showing signs of starting to initiate IaaS cloud projects.”

Service providers have been a little slow to get on board, Nixu Managing Director Juha Holkkola said in a statement, noting that current events have increased the rate of adoption.

“After the National Security Administration’s cyber-spying scandal, service providers from around the world are seeing how they can successfully compete against the U.S.-based players.”

Other key findings from the report include the following:

  • Transformation to IaaS cloud computing model is starting to show significant momentum as MSPs and carriers are including IaaS cloud in their service portfolio.
  • The perceived information security risks associated with incumbent U.S.-based IaaS cloud providers is helping challengers based outside the U.S. to differentiate their cloud offerings.
  • Due to intensifying competition in the IaaS cloud space, small and medium-sized businesses (SMBs) and enterprises are showing increasing interest in reducing their data center footprint by buying CPU, memory, storage and networking from IaaS clouds.

The report concluded that approximately 59 percent of respondents are not yet considering IaaS cloud deployments, down from 84 percent of respondents who participated in similar survey carried out by Nixu in March.

The software company’s survey included responses from 189 MSPs and carriers during the month of November.

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