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Hyperscale Cloud Providers vs. Cloud IT Services Providers: Who Must Bend the Knee?

By Rene Buest | September 09, 2021 | 0 Comments

Tech and Service ProvidersCloud Computing

Hyperscale cloud providers attract the most media attention and are at the epicenter of innovation in infrastructure and platform services. Growing adoption and increased spending are driving the momentum of this trend even more. According to Gartner’s 2020 Cloud End-User Buying Behavior Survey, 68% of respondents globally indicate that their organizations plan to increase spending on cloud computing in the next 12 months. The majority (76%) of respondents using public cloud indicate that their organization is using multiple public cloud providers.

Public cloud providers are generally the main focus of digitization initiatives, perhaps due to the market dominance of a small number of hyperscale providers. The messaging of these digital giants is powerful and compelling, and it would seem that the benefits of public cloud are easy to obtain.

However, almost a third (32%) of respondents to Gartner’s 2020 Cloud End-User Buying Behavior Survey reported that their organization unsuccessfully or ineffectively implemented cloud-based solutions in the past three years.

Almost a Third of Organizations Report Unsuccessful or Ineffectively Implemented Cloud-Based Solutions in the Past Three Years

Gartner interactions show that the complexity of moving to the public cloud and the scarcity of talent and skills to build and operate public cloud infrastructure are connected to cloud project failures. In addition, survey participants say that the most frustrating aspects of working with public cloud infrastructure providers, such as hyperscale cloud providers, are:

  • Cloud performance (28%)
  • Cost control (28%)
  • Cloud interoperability (27%)
  • Migration of mission-critical applications to cloud (27%)
  • Regulatory compliance (26%)

Despite attention being predominantly on hyperscale cloud providers, 65% of survey respondents report their organization is working with cloud IT services providers to overcome the frustrations noted above. That makes cloud IT services providers crucial partners for the hyperscale cloud providers’ ongoing success and ability to achieve their growth ambitions and expectations.

Tech CEOs of cloud IT services providers can build a thriving business around the leading hyperscale cloud providers’ portfolios with a successful partnership strategy and technical expertise.

In our research note “Tech CEO Cloud MSPs Are Crucial Partners for Hyperscale Cloud Providers’ Growth Strategy and Success”, we help tech CEOs of cloud IT services providers to understand the importance of their role in the cloud ecosystem to better articulate their value proposition in their partnership strategies.

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If you want to engage with me, feel free to schedule an inquiry call (inquiry@gartner.com), book a vendor briefing (vendor.briefings@gartner.com), follow me on Twitter (@ReneBuest) or connect with me on LinkedIn.

I am looking forward to talking to you!

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