How Public Cloud Providers Are Reshaping Managed SPs and Managed Services in the World of IT

This IDC Market Perspective discusses how the combination of public cloud providers becoming the locus of enterprise consumption of cloud capabilities when used with managed cloud services and public cloud providers becoming closely integrated with managed SPs is driving not just changes in customer perceptions of the roles of managed SPs and public cloud providers but also a fundamental restructuring of managed SP business models. This document also provides managed SPs with a framework of critical factors to consider in responding to these shifts.“Managed SPs need to adapt their business models as public cloud providers increasingly take center stage as the source of cloud capabilities with managed cloud services,” says David Tapper, program VP, Outsourcing and Managed Cloud Services at IDC. “Investments that managed SPs must make to ensure that they can effectively compete involve reassessing brand, positioning, and differentiation; emphasizing role and position as general contractor or niche provider; providing robust governance; implementing effective organizational structure; building an integrated digital services supply chain; creating an inventory system; automating while optimizing critical partnerships; and experimenting with new channels for opportunities.”