Cloud market trends say it’s safe to jump on the as-a-service train

Rebecca Schimmoeller is the Senior Content Marketing Specialist for Acronis. Acronis sets the standard for hybrid cloud data protection through its backup, disaster recovery, and secure file sync and share solutions.

Even if you're on the right track, you'll get run over if you just sit there. – Will Rogers

In the world of information technology, delivering cloud services is the next train barreling down the tracks. It is an ever-expanding, ever-evolving opportunity moving at remarkable speed. That could be why there are so many as-a-Service (aaS) acronyms out there.

But even with big players like Amazon, Microsoft, and Google in the mix, there’s plenty of opportunity for service providers to jump on board.

The numbers don’t lie

The worldwide public cloud computing market is expected to grow by 21.4% this year, climbing to a total of $186.4 billion. Gartner’s April 2018 report breaks it down:

• Software-as-a-Service (SaaS) is the industry leader, looking at $73.6 billion this year alone and positioned to account for 45% of total application software spending in 2021
• Infrastructure-as-a-Service (IaaS) is the fastest growing, expected to reach $40.8 billion by the end of this year
• Platform-as-a-Service (PaaS) is on track to hit $15 billion in 2018 and $27.3 billion in 2021

Similar growth is expected for the data protection and recovery solution market specifically. They project a compound annual growth rate (CAGR) of 16% for the sector, reaching nearly $120 billion by 2025.

Opportunity awaits

Maybe these projections don’t surprise you. After all, companies of all sizes know that data powers the bottom line. They rely on the data they generate to both enhance operational efficiency and develop products and services that are finely-tuned to customer preferences.

But that reliance means the stakes are even higher if something goes wrong. Data protection requires a level of expertise, but your customers are focused on the law, medicine, retail, or other practice that is their specialty. And that’s exactly where the opportunity lies for you. They are more than happy to turn to service providers for solutions.

Cloud data protection is smart business

In fact, when it comes to cloud computing, business managers see two types of green:

1. Money not spent on expensive hardware, equipment and staff
2. The green light to focus on running and growing their business.

Managers can rest easy knowing they have access to industry specialists who keep up with evolving technologies for them. For example, businesses can easily scale using cost-effective, vetted cloud resources. Gone are the days spent worrying about managing the off-site storage that is essential for a backup plan that follows the 3-2-1 rule.

Getting your BaaS in line

Service providers looking to expand their offerings are wise to begin with Backup-as-a-Service (BaaS). It’s an easy sell because the best way to avoid data loss of any type is by creating a secure off-site backup. Such a straightforward solution can also help cultivate a long-term, trusting relationship.

DRaaS for success

Service providers can offer a more personal service than the big competitors, so business managers often rely on them differently. Managers look to you for guidance, and expect you to ask the important questions that they wouldn’t necessarily think about, like:

• How long could you stand downtime without it putting you out of business?
• Did you know that cloud disaster recovery lets you achieve an easy, affordable way to ensure data safety and quick IT systems recovery?

Disaster-Recovery-as-a-Service (DRaaS) is the practical extension of BaaS and is a big win-win for service providers and customers alike. With a disaster recovery plan in place, a business can maintain continuity. Since DRaaS is an on-demand service, there are no upfront costs. This kind of offering puts service providers in a tremendously valuable position built on trust, earning them loyalty and access to new revenue streams.

Take a leap forward, not a leap of faith

Expanding your service offerings into BaaS and DRaaS doesn’t have to hurt. Just as your customers turn to you for expertise and trust you to deliver the highest-quality cloud solutions, you’ll want the same from your partner. Look for one that’s developed a solution backed by powerful, innovative, proven technology. The platform should be easy to implement, both in terms of the solution it delivers for customers (e.g. backup and recovery), and administratively. It should offer simple licensing and flexibility, allowing you to differentiate with unique service offerings geared toward your own customers.

Final thought

The cloud-based “as-a-Service” model presents a wonderful opportunity for IT service providers to meet the business needs of customers, while opening new revenue streams for your own company. There are certainly solutions available that can help support such a move, and the right choice can make it both an easy and profitable decision. By differentiating your service offerings and selecting the right platform, you can stand out from the competition – regardless of how big they are.