Cloud Revenue of Hosting Service Providers to Pick Up Steam
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Hosting Provider Strategies to Leverage the Cloud
64%: offer cloud infrastructure, 64%: provide service excellence, 53%: global expansion, 48%: better position reseller channel, 47%: cut prices -
Hosting Providers Garner Healthy ROI
75% of hosting service providers are positive about the impact of the cloud on their revenue. -
Market Growth
29% of hosting providers say the cloud accounts for at least three-fifths of their revenue, but it is expected to increase to 58% by 2015. -
Continental Divide: Part I
56% of customers in Europe seek traditional hosting models, as opposed to just 16% in the U.S. -
Continental Divide: Part II
52% of customers in the U.S. seek SaaS models, compared with 40% in Europe. -
Global Alliance
IaaS demand remains steady, at 36%, for both U.S. and European customers. -
Data Centers of Choice
43%: carrier-neutral, 30%: self-owned, 20%: on customer premise, 13%: telco -
Regional Rivalry
76% of service providers say their key competitors are local, rather than international.
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Why Metrics Matter to the Channel Although the cloud isn't yet a dominant contributor to hosting service providers' revenue, it will be by 2015, according to a new survey from Interxion, a provider of cloud and carrier-neutral co-location data center services. Reports of the death of the traditional hosting model have apparently been greatly exaggerated—at least on an international scale. The study, based on data from more than 400 hosting service providers in the United States and Europe, shows that demand for traditional hosting is holding firm in Europe, though not so much in the United States. Demand for software-as-a-service (SaaS) offerings also remains strong for both the United States and Europe. However, infrastructure-as-a-service (IaaS) is gaining momentum, especially given that the vast majority of hosting providers are reporting positive ROI gains through this model. The survey also provides insight into how hosting providers plan to boost sales. U.S. service providers' top strategies for leveraging the cloud include focusing on service excellence and better positioning their reseller channel to help handle the influx of business. Channel Insider examines key takeaways from the Interxion study.