The Public Cloud Space Continues to Offer Profitable Opportunities for MSPs

The public cloud is getting bigger by the day. Case in point, the total global public cloud market will be $178B in 2018, up from $146B in 2017, and will continue to grow at a 22% compound annual growth rate (CAGR), according to Forrester. With Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) adding up to be fastest growing segments, the demand for cloud services is undeniable.

According to Gartner, public cloud services will reaching $411 billion by 2020, with the highest revenue growth coming from cloud system infrastructure services.

This means a few things for your business:

  • Cloud adoption is essential because your end customers are asking for it
  • Learn to build solution-centric offerings leveraging IaaS/SaaS/PaaS
  • Partner with the right providers who compliment your cloud strategy

A few years ago, cloud solutions might have seemed risky. As the technology became more efficient, feature-rich, and secure, this changed. Today, some element of cloud technology is commonplace in just about any Managed Service Provider’s (MSP’s) product stack.

How to Win in the IaaS Space

To capitalize on this growth opportunity, MSPs need to be ready with solutions, not products. For example, profitably delivering IaaS means being ready to efficiently migrate, manage, and scale the solution without any disruption to the client. This will require the IaaS platform you choose to be easy to understand—so any employee can pinch-hit as needed—as well as affordable, reliable, and interoperable with other common products in your client’s existing stack.

To achieve this, you’ll need these basics:

  • Primary staff trained to deploy cloud solutions
  • Secondary staffers cross-trained to pinch-hit
  • The ability to balance workloads without any interruption to the client
  • Award-winning uptime

The biggest challenge here is finding the right mix of reliability and affordability. Big-name IaaS solutions typically fail to deliver the best of both, choosing instead to focus heavily on one or the other. Instead of settling, get the best of both worlds. The ProfitBricks IaaS platform offers competitive uptime and pricing, leaving plenty of margin of the table for MSPs.

Other Notable Cloud Growth Segments

Hybrid cloud deployment along with software are also poised to deliver lucrative growth in the coming years. The CAGR for these areas is expected to be 29.1% and 27.8% respectively, presenting more opportunities for MSPs to capitalize in the cloud by diversifying their offerings.

How to Identify the Right Cloud Solutions

Choosing the right cloud solutions that can work together as one can get tricky. Most distributors can sell you products, but few strive to help you build interoperable solutions that can easily generate double-digit recurring revenue. Pax8 is different. With them, you get a curated list of top-notch solutions and an award-winning partner program you won’t find anywhere else.