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Multi-cloud approach will lead to cloud service providers becoming cloud brokers

(Image credit: Image Credit: Melpomene / Shutterstock)

According to a new report from 451 Research, cloud service providers will soon need to expand their product portfolios to include their competitors services in order to remain relevant, as more businesses adopt hybrid or multi-cloud approaches.

The report - entitled Managed Infrastructure Market Overview 2016 - highlights how cloud service providers that are unable to provide their customers with access to both their own and third-party offerings will surely lose business as a multi-cloud approach becomes necessary for businesses going forward.

451 Research believes that by re-positioning themselves as cloud brokers, cloud service providers will be able to retain their current customers and even aid enterprises in understanding the difficulties associated with multi-cloud management.

Carl Brooks, the author of the report, said: “Almost without exception, service providers of all kinds – including the hyperscalers – are now offering access to third-party services as well as their own. They are becoming brokers of cloud services and must, if they want to win, keep and grow customer relationships without the customer needing to go elsewhere.”

Through 2015 and 2016, this strategy has already begun to pay off for companies such as Rackspace and VMware, which both launched services that help enterprises manage Amazon and Microsoft cloud deployments so that they could be integrated with their existing on-premise IT resources.

The firm also noted that CIOs have begun to adopt the “AWS+1” strategy in order to prevent themselves from being locked in with a provider in the future. As more businesses adopt this strategy, a need for cloud brokers presents itself as they will likely struggle to manage their various cloud services. 

Image Credit: Melpomene / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.