Ian McClarty, President, PhoenixNAP, sits with Dave Vellante & Peter Burris at VeeamON 2019 in Miami Beach, FL.
#VeeamON #PhoenixNAP #theCUBE @SiliconANGLE theCUBE @Veeam
https://siliconangle.com/2019/07/16/msps-make-unlikely-friends-with-public-cloud-fat-cats-veeamon2019-startupoftheweek/
MSPs make unlikely friends with public-cloud fat cats
Today’s information-technology market is turning out to be an unlikely friend to smaller, managed service providers. Not only did public cloud not kill them as some foresaw, it actually paved the way for expansion. And mid-sized enterprises may even prefer them over hyperscalers.
The twists in the service-provider market during recent years are reflected in phoenixNAP LLC’s history. “We’re hosting guys that went into the data-center business and became infrastructure people,” said Ian McClarty (pictured), president of global IT services company phoenixNAP.
The business started with a focus on connectivity and telecommunications. It now operates 15 collocations services globally and offers a full suite of infrastructure services. These range from collocation to bare-metal dedicated cloud systems. In the middle are virtualized cloud platforms, standard VMware Inc. deployments, etc.
The company began offering hosting services when it was still considered “boutique,” according to McClarty. Then public cloud came along and offered a similar service — scalable, easy-to-absorb infrastructure — to a broad market base. Thanks to cloud providers like Amazon Web Services Inc. and Microsoft Corp. Azure, infrastructure as a service is mainstream now. Yet, hyperscalers have not razed companies like phoenixNAP to the ground. In fact, the runoff from those companies’ broad successes has nourished them.
“They did a lot of market development that we ourselves cannot do because we’re smaller companies,” he said.
Today, smaller service providers are playing nice with hyperscalers in ways few would have predicted several years ago. They may partner with large cloud providers, build their own services on top of public clouds, or provide managed cloud services for customers of all sizes.
McClarty spoke with Dave Vellante (@dvellante) and Peter Burris (@plburris), co-hosts of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, during the VeeamON event in Miami Beach, Florida. They discussed the evolution of service providers and why mid-sized enterprises are choosing them (see the full interview with transcript here). (* Disclosure below.)
This week, theCUBE spotlights phoenixNAP in our Startup of the Week feature.
Strange service-provider bedfellows
“A lot of MSPs are afraid they will lose business to the cloud,” said Alexandria Huber, director of alliances at Cloudtrek Pty. Ltd., a provider of private cloud, hybrid cloud, and colocation services, as quoted by CRN. “But we cloud providers need MSPs. We just can’t offer the services MSPs can,” she said.
Examples of these services are cropping up all over the MSP sphere. For CenturyLink Inc. customers, public cloud provides a homebase for applications, while CenturyLink does the dusting and polishing.
“Once workloads have been transitioned to AWS [a CenturyLink partner], we’re able to manage those as a managed service provider for the organizations,” Dominic Deacon, sales director of cloud services and alliances, EMEA, at CenturyLink, recently told theCUBE.
Other MSPs may help customers choose public cloud services and combine them with their offerings to build business solutions. “Those services are not easy to roll out,” said Michael Gray, chief technology Thrive Operations LLC. “You still need someone to understand what the business needs are and then translate those into technology solutions,” he told theCUBE in May.
The managed services market will grow from $180.5 billion in 2018 to $282 billion by 2023 at a compound annual growth (CAGR) rate of 9.3%, according to a MarketsandMarkets Research Private Ltd. report. Major growth drivers include increasing reliance on IT to enhance business productivity and growing demand for cloud-based managed services, according to the report.
The mid-sized enterprise play
Mid-sized enterprises are in a somewhat awkward position. They’re bigger than small-to-medium-sized businesses but smaller than large Fortune 500 enterprises. They might take in about $50 million to $500 million in revenue, according to McClarty. They have some skilled IT people in-house — though they’re usually generalists — and some budget to work with. So they don��t want to outsource everything to a hyperscaler cloud, but they need what McClarty calls “supplemental IT.” They also tend to be a bit fussy; their IT needs are nuanced, and they want a tight relationship with providers.
...
(* Disclosure: Veeam Software Inc. and phoenixNAP LLC sponsored this segment of theCUBE. Neither Veeam, phoenixNAP nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)
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Ian McClarty, PhoenixNAP | VeeamON 2019
Ian McClarty, President, PhoenixNAP, sits with Dave Vellante & Peter Burris at VeeamON 2019 in Miami Beach, FL.
#VeeamON #PhoenixNAP #theCUBE @SiliconANGLE theCUBE @Veeam
https://siliconangle.com/2019/07/16/msps-make-unlikely-friends-with-public-cloud-fat-cats-veeamon2019-startupoftheweek/
MSPs make unlikely friends with public-cloud fat cats
Today’s information-technology market is turning out to be an unlikely friend to smaller, managed service providers. Not only did public cloud not kill them as some foresaw, it actually paved the way for expansion. And mid-sized enterprises may even prefer them over hyperscalers.
The twists in the service-provider market during recent years are reflected in phoenixNAP LLC’s history. “We’re hosting guys that went into the data-center business and became infrastructure people,” said Ian McClarty (pictured), president of global IT services company phoenixNAP.
The business started with a focus on connectivity and telecommunications. It now operates 15 collocations services globally and offers a full suite of infrastructure services. These range from collocation to bare-metal dedicated cloud systems. In the middle are virtualized cloud platforms, standard VMware Inc. deployments, etc.
The company began offering hosting services when it was still considered “boutique,” according to McClarty. Then public cloud came along and offered a similar service — scalable, easy-to-absorb infrastructure — to a broad market base. Thanks to cloud providers like Amazon Web Services Inc. and Microsoft Corp. Azure, infrastructure as a service is mainstream now. Yet, hyperscalers have not razed companies like phoenixNAP to the ground. In fact, the runoff from those companies’ broad successes has nourished them.
“They did a lot of market development that we ourselves cannot do because we’re smaller companies,” he said.
Today, smaller service providers are playing nice with hyperscalers in ways few would have predicted several years ago. They may partner with large cloud providers, build their own services on top of public clouds, or provide managed cloud services for customers of all sizes.
McClarty spoke with Dave Vellante (@dvellante) and Peter Burris (@plburris), co-hosts of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, during the VeeamON event in Miami Beach, Florida. They discussed the evolution of service providers and why mid-sized enterprises are choosing them (see the full interview with transcript here). (* Disclosure below.)
This week, theCUBE spotlights phoenixNAP in our Startup of the Week feature.
Strange service-provider bedfellows
“A lot of MSPs are afraid they will lose business to the cloud,” said Alexandria Huber, director of alliances at Cloudtrek Pty. Ltd., a provider of private cloud, hybrid cloud, and colocation services, as quoted by CRN. “But we cloud providers need MSPs. We just can’t offer the services MSPs can,” she said.
Examples of these services are cropping up all over the MSP sphere. For CenturyLink Inc. customers, public cloud provides a homebase for applications, while CenturyLink does the dusting and polishing.
“Once workloads have been transitioned to AWS [a CenturyLink partner], we’re able to manage those as a managed service provider for the organizations,” Dominic Deacon, sales director of cloud services and alliances, EMEA, at CenturyLink, recently told theCUBE.
Other MSPs may help customers choose public cloud services and combine them with their offerings to build business solutions. “Those services are not easy to roll out,” said Michael Gray, chief technology Thrive Operations LLC. “You still need someone to understand what the business needs are and then translate those into technology solutions,” he told theCUBE in May.
The managed services market will grow from $180.5 billion in 2018 to $282 billion by 2023 at a compound annual growth (CAGR) rate of 9.3%, according to a MarketsandMarkets Research Private Ltd. report. Major growth drivers include increasing reliance on IT to enhance business productivity and growing demand for cloud-based managed services, according to the report.
The mid-sized enterprise play
Mid-sized enterprises are in a somewhat awkward position. They’re bigger than small-to-medium-sized businesses but smaller than large Fortune 500 enterprises. They might take in about $50 million to $500 million in revenue, according to McClarty. They have some skilled IT people in-house — though they’re usually generalists — and some budget to work with. So they don’t want to outsource everything to a hyperscaler cloud, but they need what McClarty calls “supplemental IT.” They also tend to be a bit fussy; their IT needs are nuanced, and they want a tight relationship with providers.
...
(* Disclosure: Veeam Software Inc. and phoenixNAP LLC sponsored this segment of theCUBE. Neither Veeam, phoenixNAP nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)
