Digital Transformation to help drive Cloud Service Providers Revenue Growth In 2018

Digital Transformation to help drive Cloud Service Providers Revenue Growth In 2018

A strong demand for cloud services to enable digital transformation is driving cloud service providers business outlook according to International Data Corporation (IDC) survey.

Key outcomes of IDC Service Provider Pulse 1Q18 Quarterly survey are :

Security is the most important consideration for 
  • 38% of cloud service providers consider security is most important to achieve their business goals in the next two years.
  • Security Services will account for the largest increase (23%) in new cloud service investment.
  • Digital Transformation is driving cloud services demand but the trend is outpacing supply.
  • Cloud service providers understand this trend and directed their investments in the new cloud offerings to cater new requirements in infrastructure, application, managed and professional services in the cloud.
  • Software specialists will transform into Services Specialist in next two years. 
  • New offerings will be associated with managed service providers, cloud service providers, hosting firms, telco providers, and outsourcers/systems integrators.

Cloud service providers will increase investments in software, device, and IP development to compete in the highly competitive environment. Overall 64 percent of cloud service providers agreeing to this trend.

Research vice president, Cloud Service Providers at IDC, Rory Duncan said, "Cloud service providers around the world are rapidly changing their business models in response to unprecedented customer demand, offering a mix of new cloud infrastructure, application, and managed services as part of an agile investment strategy. What is striking is not only the pace of transformation, but also the variety of offerings coming to market as a result. From managed cybersecurity to performance optimization, the hosting of complex business applications and hybrid cloud are offering the potential for service integration at point of delivery."

IDC observes that Digital Transformation will help 85% of Cloud Service providers achieve a 19% increase in revenue in 2018.


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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

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