Worldwide spending on public services is set to reach USD 122.5 billion in 2017. An increase of 24.4 per cent over 2016.
In fact, the compound annual growth rate (CAGR) of spending on public cloud services is almost seven times that of overall IT spending growth. Moreover, IDC predicts that by 2020, it will top USD 203.4 billion worldwide.
The size of the opportunity for CSPs is huge but fierce competition, accelerating innovation. The need to keep prices low continue to create enormous pressure.
With more CSPs launching every month, enterprises and consumers have a wealth of choice from large, generalist public cloud providers to niche players specializing in particular services, markets or regions. This is great news for customers but CSPs can find that these combined stresses can seriously impact profitability. Even in a growing market, increasing profitability and sustaining market share are no easy feat for today’s businesses.
Technology Snapshot__The term Cloud Media Services covers various types of media delivery over the public cloud, including video and audio streaming and gaming services. Anticipated market value USD 61.41 billion by 2019.
Opportunities and Next Steps for Cloud Services Innovation
The size of the opportunity for CSPs is huge but fierce competition. Accelerating innovation and the need to keep prices low continue to create enormous pressure.
The willingness to change providers underlines another issue that CSPs face: stickiness. In a crowded market where differentiating from the competition is difficult, CSPs must find ways to retain customers over the long term.
This Whitepaper outlines some of the primary challenges faced by CSPs in making and keeping their business profitable. Furthermore, suggests strategies and innovations that can help cloud businesses to take a greater share of the market opportunity.