Infrastructure as a Service (IaaS) has had a relatively short but dynamic history. The concept of cloud computing had been around for decades, but it was not a practical option for many companies until Amazon developed the cloud computing infrastructure model to enable more efficient use of compute capacity. Amazon launched its online retail services in 2002 and Amazon Web Services in 2006, offering services to other businesses, including Elastic Compute Cloud (EC2), allowing users to use virtual machines on a daily basis. ‘subscription or’ as a service ‘.
Since the initial launch of IaaS about 20 years ago, IaaS adoption and spending has grown significantly. Gartner estimates the global market at approximately $ 61 billion, and ResearchandMarkets.com predicts the IaaS market to grow by an additional $ 136.21 billion from 2021 to 2025, a CAGR of 27%.
What drives IaaS growth?
Several factors are driving the growth of IaaS, including two dominant trends:
1. Replacement of CAPEX by OPEX
On-premise infrastructure, including servers, data centers, and networking, is expensive. A business should budget for extensions or upgrades to on-premises infrastructure so that it can purchase the hardware it needs. When a business determines that more computing power is needed, it can take months from approval to budgeting, purchasing, and implementation to have new IT resources available. Meanwhile, a competitor could get ahead in terms of delivery capabilities, customer service, or innovative products or services because they use cloud infrastructure.
IaaS allows a business to expand its computing power almost immediately (without having to find additional floor space for a larger server room or data center) and pay for the capacity it uses on a monthly. No CAPEX, budget and purchase cycle or waiting months are necessary.
2. Businesses need greater agility to ensure business continuity
The COVID-19 pandemic has proven that a 100% on-premise system is not enough for a business to keep operating during a crisis. Cloud or hybrid infrastructure ensures that a company’s systems are accessible when employees need to work from different locations, that the distributed workforce can still do their jobs, and that data can be stored and backed up to meet goals. recovery time and recovery point (RTO and RPO).
Has your MSP business kept pace with the IaaS demand?
Companies looking for ways to expand their capabilities, take advantage of new technologies, and strengthen business continuity all present opportunities for Managed Service Providers (MSPs) to expand and grow their businesses.
Some MSPs simply sell IaaS, essentially participating only as a sales agent for the service. Ingram Micro points out, however, that by investing time and effort, an MSP can create a lucrative IaaS practice. Your customers need an MSP with expertise who can guide them through a successful migration to cloud infrastructure and bundle those services with the other solutions they need, from backup and security to maintenance. continuous and cost optimization. Businesses need a partner to help them solve their problems by moving infrastructure to the cloud and providing them with the additional services and solutions they need to operate more competitively. If all you do is “sell” IaaS, you are missing out on opportunities to build strong relationships with your customers by moving workloads to the cloud.
Businesses also need MSPs that can fill their gaps with internal resources. Gartner predicts that until 2022, a lack of adequate IaaS skills will delay cloud migrations by at least two years. The transition to the cloud often requires more than a “lift-and-shift” approach, but modernization and rebuilding can produce better results. Gartner says, “This creates a market where service providers cannot train and certify people quickly enough to meet the needs of skilled cloud professionals.”
Analysts concluded that the migration of businesses to the cloud and the demand for MSPs that can help them successfully transition from on-premises infrastructure to IaaS will continue. Explore the options to find out how your MSP business can meet these needs and the impact it could have on your business. But don’t wait. The IaaS demand is increasing now.