• Fujitsu releases predictions for 2019’s channel industry

        • Fujitsu has shared its predictions for the channel industry for 2019. From service providers becoming increasingly important to digital transformation, to hyper-scale cloud vs service provider clouds and pay-for-what-you-use trend, here, the company covers the top seven trends that will mark the year.

          1. Service providers are increasingly key to digital transformation…

          91 per cent of end-user organisations plan to use a service provider to engage on at least one key digital or IT initiative in the next five years. This also supports why many of these organisations expect that over a third (37%) of IT infrastructure will be owned by service providers in the future. However, while being in hot demand, the role of the service provider will change. The vast majority (92%) of end-user organisations want their future partners to be service integrators – bringing together their own and third-party services, utilising an ecosystem of micro-alliances, in a way that will deliver improved business outcomes.

          1. …but the expectations of service providers will shift…

          Whilst on-premises infrastructure managed services are the most used service today (59%), only one in four (26%) plan to use a service provider for this in five years’ time. Instead, a mix of pure Infrastructure-as-a-Service (36%), private, hosted infrastructure managed services (33%), public cloud orchestration and managed services (35%) paint the picture of a hybrid service deployment model.

          1. And competition is fierce, with regional service providers are on the rise.

          With more global players entering regional markets, new competitors are starting to appear from places previously unseen. On average, 29.69 per cent of IT estates in respondents’ organisations are supported by a regional service provider currently – this is set to rise to 54.70 per cent in five years’ time. End users are increasingly looking to work with a combination of both regional service providers and global systems integrators (83%), so as to feel the benefits of both a local approach and global expertise. But where possible, nine in ten (87%) would rather limit the number of partners that their organisation has, having fewer, more strategic ones instead. 

          1. Hyper-scale cloud vs service provider clouds?

          Typically thought of as competition for service providers, hyper-scalers could be an important part of a service integrators ecosystem. 80 per cent of end-user organisations plan to use a combination of offerings from hyper-scalers and service providers and will turn to service providers where Knowledge of the business (44%) flexibility (36%) and bespoke solutions (33%) are key, vs a hyper-scaler offering prevailing for reputation (41%), lower chance of downtime (40%) and greater perceived security (40%).

          1. Despite this, there is an opportunity for resellers to shift their business models.

          Resellers must focus on expanding their existing end user relationships. Our research found that 87 per cent of respondents would use their existing VAR partners if they could offer managed services alongside reselling products. In fact, 19 per cent are already working with a VAR partner in this way.

          1. And what will they need to be offering? While we’re seeing the rise of DaaS…

          Desktop-as-a-Service, as a service provider offering, is set to rise substantially in the future, from 15 per cent of users utilising this model today to an estimated 41 per cent in five years’ time. The upward trend is consistent across all surveyed organisation sizes, but DaaS looks particularly likely in smaller organisations (from 22% now to 46% in five years).

          1. …pay for what you use is a growing trend, but the demand for flexibility isn’t there. Yet!

          Pay for what you use is a growing trend within procuring cloud services, with 55 per cent expecting this on a fixed term contract. However, the more traditional fixed price, fixed term agreements are still expected by 39 per cent. What’s more, true flexibility is not yet a real demand, with only 26 per cent expected pay for what you use with no fixed contract.

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