Channel Marker


September 21, 2012  10:03 PM

When it comes to cloud, it’s not a question of if, it’s a question of when

Heather Clancy Heather Clancy Profile: Heather Clancy

There is more evidence out this week underscoring the thesis that it is time for solution providers to stop wondering about “if” cloud will become a factor for their businesses and starting figuring out “when” its influence will hit their bottom line — either positively or negatively.

This year, public cloud services will surpass $109 billion in IT spending — with business process applications delivered by the cloud accounting for the biggest part of that amount, or $84.2 billion (up from $72 billion in 2011), reports research firm Gartner.

One reason that number is so big, though, is because it includes money spent for cloud-driven advertising services, which represent about 47 percent of that number.

The second biggest chunk of spending will be for applications delivered as a service, also known as software as a service (SaaS) — projected at $14.4 billion in revenue for 2012. Infrastructure as a service (IaaS) will account for about $6.2 billion this year, while platform as a service (PaaS) will drive about $1.2 billion in sales.

Overall, the public cloud services spending will grow about 19.6 percent in 2012, which begs the question: how long can your business ignore its positive influence, in the form of potential new services that you could provider around process consulting, or overlook the potential negative impact on its sales of on-premise solutions that cloud services are replacing?

“The cloud services market is clearly a high-growth sector within the overall IT marketplace,” says Ed Anderson, a research director at Gartner, discussing the data. “The key to taking advantage of this growth will be understanding the nuances of the opportunity with service segments and geographic regions, and then prioritizing investments in line with the opportunities.”

From an investment standpoint, it’s important to know, for example, that the market for IaaS will be roughly the same size as the market for SaaS by 2016, according to Gartner’s projections.

That means solution providers need to think long and hard about whether IaaS will displace hardware they are selling today and start looking at which IaaS models offer the best places for them to add value in terms of management, consulting and security.

North America will continue to dominate absolute spending for cloud services, accounting 61 percent of the anticipated growth between 2010 and 2016, the data show

By that time, worldwide spending for public cloud services is forecast at $206.6 billion, says Gartner.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.

September 14, 2012  2:37 PM

Security still a good bet, despite spending pressure elsewhere

Heather Clancy Heather Clancy Profile: Heather Clancy

Even though the outlook for IT spending could be accurately described as uncertain, budgets for security infrastructure and managed services are continuing to hold up, according to new data from Gartner.

This year, worldwide spending on security should reach $60 billion, up 8.4 percent from $5.5 billion in 2011. That trajectory should boost worldwide spending to about $86 billion by 2016, reflecting growth of 9 percent to 11 percent during that timeframe, Gartner predicts.

“The security infrastructure market is expected to experience positive growth over the forecast period, despite risks of further economic turbulence,” said Lawrence Pingree, a Gartner research director.

Overall, about 45 percent of the businesses that Gartner used to make its projections are expecting to increase their budget over time; just 5 percent anticipated a decrease.

Here are some of the priorities surfaced by Gartner’s research:

  • Managed security services
  • Secure Web gateway appliances
  • Security information and event management technology

It’s intriguing to me that mobile security isn’t on this list, which suggests to me that companies plan to rely on better management at the infrastructure level to control this.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


September 7, 2012  9:02 AM

Why cloud storage is a great thing for your data management practice

Heather Clancy Heather Clancy Profile: Heather Clancy

I don’t want this blog to be all cloud, all the time, but some additional data about cloud storage subscriptions was released this week that deserves technology solution providers’ attention.

Almost 200 million consumers will add cloud storage subscriptions this year, bringing the total number of subscribers up to about 500 million people worldwide, according to research firm IHS iSuppli.

That’s a lot of growth for one year.

While the forecast increase of 25% (reaching up to 625 million people) for 2012 is small in comparison, any high-tech channel services company that persists in believing that cloud storage won’t affect their practice related to on-premise storage solutions is woefully misguided.

The good news is that all this interest in cloud storage provides a super opening for managed service providers, VARs and other members of the high-tech channel, who can offer some all-important perspective on why a storage service developed with consumers in mind probably isn’t the best idea for a small or midsize business (SMB).

That’s not to say that SMB cloud storage is a bad idea, because it provides small companies supporting lots of remote workers with a great option for allowing them to access critical information and applications. But it is time for some real discussions about what is and is not possible in the cloud when it comes to security and, equally as important, with data management and backup.

Most SMBs looking at cloud storage, for example, probably don’t realize that once something is deleted, it’s probably gone forever. The concept of version control in the cloud is still very rudimentary. That alone could be a deal breaker, and it could give solution providers the opening they need to recommend a cloud storage service designed with businesses — not individuals — in mind.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


August 24, 2012  8:13 PM

Cloud services are fastest-growing IT outsourcing segment

Heather Clancy Heather Clancy Profile: Heather Clancy

This isn’t likely to surprise anyone reading this blog post, but Gartner’s latest report on worldwide IT outsourcing pegs “cloud compute” services as the fastest-growing opportunity — on a pace to increase by nearly 50 percent this year to $5 billion (compared with $3.4 billion in 2011).

Managed service providers (MSPs) can take heart. One big driver of IT outsourcing contracts in North American is an interest in managed services relationships that help push out routine maintenance costs, according to the Gartner analysis. That focus will continue until probably 2016.

Here’s the requisite perspective as to why from Gregor Petri, a Gartner research director:

“Today, cloud compute services primarily provide automation of basic functions. As next-generation business applications come to market and existing applications are migrated to use automated operations and monitoring, increased value in terms of service consistency, agility and personnel reduction will be delivered. Continued privacy and compliance concerns may however negatively impact growth in some regions, especially if providers are slow in bringing localized solutions to market.”

Overall spending on IT outsourcing should increase about 2.1 percent this year compared with 2011, to reach $246.6 billion globally, Gartner predicts.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


August 17, 2012  12:52 PM

Some quick data points for managing SMB virtualization projects

Heather Clancy Heather Clancy Profile: Heather Clancy

What are small and midsize businesses looking for in virtualization projects?

The overriding objective is to save money, according to a new set of data crunched up by Symantec into the handy-dandy information graphic (aka infographic) that I have embedded below.

But one of the things that bedevils these same companies is “identifying the true cost and budget” for virtualization projects: 81 percent of SMBs want more support in this area.

Here’s where else they could use help from technology solution providers:

  • Understanding the impacts of virtualization (56 percent)
  • Developing new back-up plans (50 percent)
  • Obtaining business buy-in (25 percent)
  • Developing new skills (25 percent)
  • Application migration planning (25 percent)

The SMBs considered by Symantec cited complexity as one of the most surprising side effects of virtualization projects. About half of them are acting under the assumption that it will result in management simplicity; an equal number are surprised to find that virtualization is much more complicated than expected.

Taken together, the data points to a real need for technology solution providers that are willing to take the time to educate SMBs about the realities of virtualization and that can stick around to help SMBs manage their projects after they are are deployed.

Here’s the complete infographic:

 

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


August 10, 2012  4:26 PM

Interest in Microsoft Office 365 on the rise, survey suggests

Heather Clancy Heather Clancy Profile: Heather Clancy

Microsoft has been closemouthed about exactly how many companies (or people) use its Office 365 cloud services, but the researchers over at SMB tracking firm TechAisle think they have some insight.

Approximately 10 percent of small businesses are actively investigating Microsoft’s cloud applications suite, reports TechAisle, based on a survey of small and midsize businesses.

Size definitely matters. For example, 30 percent of the TechAisle survey respondents employing 20 to 49 people were considering Office 365, while only 6 percent of the companies with one to four people were thinking about it.

The most intriguing features for the survey respondents were email and calendar management, remote working capabilities and collaboration applications, reports TechAisle.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.

 

 


August 6, 2012  2:29 PM

Dell opens up cloud services offerings to partners

Heather Clancy Heather Clancy Profile: Heather Clancy

After a four-month pilot test, Dell has decided to let its U.S. and Canadian channel partners offer Dell Cloud Services under the company’s PartnerDirect program.

Partners can either become an agent for the services, which means they receive a referral fee, or they can work with Dell to provision their own instance of the service and then resell it to their customers in a traditional resale model for a margin.

The company has also added a new certification level to its training programs for VARs, systems integrators and MSPs interested in wrapping their own services and solutions around a Dell cloud offering.

The new level is called Cloud Enabler, and it will be used to designate Dell partners that can integrate a range of different cloud services on behalf of a customer and then operate it via managed services. The platform for doing this is the Dell Cloud with VMware vCloud Data Center Service. The infrastructure as a service offering (IaaS) is a secure, enterprise-class service that lets MSPs create private clouds for their customers.

“We have been helping our customers implement IaaS for a few years now, so we’re very familiar with customer needs and onboarding challenges that can arise. Dell helps us meet those head on,” said Dell partner Michael Pearson, DSA Technologies.

The Cloud Enabler certification level launches this week in the United States and Canada; it is scheduled to become available in the EMEA markets at the end of August.

 


July 27, 2012  1:24 PM

Changing tides for smartphone sector?

Heather Clancy Heather Clancy Profile: Heather Clancy

Smartphone sales in the second quarter grew at the slowest pace in almost three years, and while Apple still posted health increases it was another vendor, Samsung, that managed to break a new record during the three-month period.

Market research firm Strategy Analytics estimates that worldwide smartphone shipments grew by 32 percent to 146.1 million units in Q2 2012. That was the slowest growth rate since the third quarter of 2009.

Samsung grabbed 35 percent of marketshare during the quarter, shipping 50.5 million smartphones — more than any other vendor has managed to produce during a single quarter. At least so far.

Strategy Analytics credits Samsung’s broad product portfolio as one reason for its achievement, which spans from the mass market Galaxy Y to the high-end Galaxy Note.

Don’t feel too sorry for the No. 2 vendor, Apple, which claimed about 18 percent of the marketshare during the second quarter, shipping approximately 26 million units. Its growth for the quarter was about the same as what it posted one year ago.

“We believe Apple’s lackluster performance was driven by some Apple fans and operators holding off iPhone purchases in anticipation of a rumored new iPhone 5 model around September or October of this year,” said Neil Mawston, executive director at Strategy Analytics.

Samsung’s growth signals another advance by the Android operating system at the expense of the Apple iOS, which is something that solution providers developing smartphone business applications or managing mobile technology being brought into companies via BYOD programs should watch carefully.

Researcher IDC believes that Android’s smartphone marketshare should peak this year at 61 percent. It is calling for overall smartphone market growth of 4 percent in 2012.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


July 23, 2012  9:50 PM

With income lagging, VMware makes changes in CEO suite

Heather Clancy Heather Clancy Profile: Heather Clancy

Just weeks before its most important channel conference of the year, VMworld, VMware has revealed an executive switch in the CEO suite: EMC COO and former Intel enterprise hardware executive Pat Gelsinger will take over as VMware’s CEO on Sept. 1, 2012.

At that time, current CEO Paul Maritz will move over to EMC in a new role as technology strategy, where he will work on projects related to big data and a new generation of cloud-based applications.

Both men will hold positions on VMware’s board of directors.

The industry scuttlebutt is that EMC wants to reenergize VMware’s relationships with key data center infrastructure partners as Microsoft makes incursions into the data center virtualization software space. According to Bloomberg, an internal memo also suggests that the switch-up is part of EMC CEO Joe Tucci’s long-term succession plan.

At Intel, Gelsinger was in charge of Intel’s Digital Enterprise Group, which accounts for more than half of that company’s annual revenue. His comments about his new job suggest VWware will seek to strengthen partnerships that underscore its position as a leading component of heterogeneous, hybrid cloud infrastructure solutions. Gelsinger said:

“The next generation of software defined-data centers will be built by combining software with standardized building blocks. VMware is uniquely positioned to be the leader in this endeavor and deliver a whole new level of value to customers and its existing important ecosystem partners.”

The CEO switch came days before the VMware reported its second-quarter 2012 results, which suggest slowing growth for the virtualization software giant. While VMware’s revenue was up to $1.12 billion for the second quarter, a 22 percent growth rate over the prior year, net income slipped to $192 million from $212 million one year ago.

For the year, VMware is calling for revenue of $4.54 billion to $4.64 billion, up anywhere from 20 percent to 23 percent.

Commenting on the results, current CEO Maritz said: “Our products, amplified by the recent acquisitions, including Nicira, are providing the means for our customers to transform IT as we move into the cloud era.”

The proposed $1.05 billion buyout of Nicira will strengthen VMware’s position in software-defined networking (SDN) and network virtualization for open source initiatives.

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


July 16, 2012  4:53 AM

Gartner boosts IT spending forecast

Heather Clancy Heather Clancy Profile: Heather Clancy

How refreshing: Gartner is actually raising its projections for 2012 IT spending slightly to $3.6 trillion. That’s up 3%, compared with the 2.5% increase that the market research firm made during the first quarter of 2012.

One big bright spot is enterprise cloud services, which Gartner thinks will grow to $109 billion in 2012 compared with $91 billion in 2011. The top cloud priority for enterprises falls into the category of business process as a service applications, according to Gartner.

Technology solution providers will also be interested to hear that global spending should reach $864 billion in 2012, up a projected 2.3%.

Here are the forecasts for some specific categories:

  • Computer Hardware – $420 billion, up 3.4%
  • Enterprise Software – $281 billion, up 4.3%
  • Telecommunications Equipment – $377 billion, up 10.8%

Look for more channel news coverage on SearchITChannel.com and follow us on TwitterFollow Heather Clancy directly.


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