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Hosting and Cloud Study 2017

12 Jun 2017

Digital Transformation Opportunity for Service Providers: Beyond Infrastructure

Grand Strategy for Digital Transformation: Partner for Success, is a study Microsoft commissioned through 451 Research. The study is designed to better understand how companies, SMBs, Enterprises etc. are transforming digitally and identify market opportunities for Microsoft’s infrastructure service provider partners to help their customers as they progress along their digital transformation journey. Over 1,700 respondents across 10 geographies participated in this survey study that was fielded between January 30, 2017 to February 22, 2017.

Key findings showed:

The Era of Managed Infrastructure Services: Managed is the New Normal – 62% of Cloud/Hosting Infrastructure Spending Comes Bundled with Value-Added Services

The Next “Beyond Infrastructure” Opportunity: Professional Services for Cloud-Enablement represent 18% of total hosting/cloud spending and 25% of the “Beyond Infrastructure” Opportunity – But Hurry…The Window is Closing Fast!

The Multi-Cloud World Is Real, Tightly Linked to Digital Transformation. 41% of Organizations Are Already On-Board, Driven by Best Execution Venue Considerations, Maximizing On-Premises IT Investments, and Opex-based IT Resource Extension. However, Implementation and Management Challenges Create Service Provider Opportunity --89% of Organizations Are Willing to Pay A Hefty Premium For Assistance

A Majority of Businesses Are Now On-Board the Digital Economy Express, But Skills, Expertise, and Partners Are Lacking, Resulting in A Key Role for Service Providers in Future Digital Transformation Projects. 52% of organizations are on-board with the digital revolution as Market Disruptors, Market Makers or Business Re-inventors (compared to 46% in 2016)

Half of All Organizations Consider Service Providers As Vital For Future Digital Transformation Projects.  60% of These Look to Service Providers for Sourcing, Implementation and Management and Would Be Willing to Pay a 2X Premium for a “One Throat to Choke” Trusted Advisor Solution

Read the full report