According to Gartner, Infrastructure as a Service (IaaS) is forecast to grow 24% year over year — the highest growth rate across all cloud computing segments. The IaaS industry will grow by $10 billion this year along, reaching a total of $50 billion by the end of 2020.
This growth represents a massive opportunity for service providers to maximize IaaS revenue. As enterprises continue to wind down their on-premise IT deployments to do more in the cloud, many of them look to managed service providers for IaaS. By helping clients meet the demands of modern applications and workloads — which require infrastructure that traditional data centers cannot meet — service providers can maximize IaaS revenue opportunities.
The IaaS Landscape for Service Providers
The cloud managed service landscape is becoming increasingly sophisticated and competitive. By 2022, up to 60% of organizations will use an external service provider’s cloud managed service offering. This is double the number of organizations that did so in 2018.
According to Sid Nag, research vice president at Gartner, “Cloud-native capabilities, application services, multi-cloud, and hybrid cloud comprise a diverse cloud ecosystem that will be important differentiators for technology product managers. Demand for strategic cloud service outcomes signals an organizational shift toward digital business outcomes.”
Better Performance to Maximize IaaS Revenue
Over the past few years, Infrastructure as a Service (IaaS) providers have worked to dramatically speed up the process of deploying and provisioning new compute and storage resources to respond quickly to changing corporate requirements.
However, according to Philbert Shih, Managing Director of Structure Research, IaaS provider offerings “don’t include anything pertaining to end-user connectivity. And when they do, they don’t ensure that the connectivity is secure and reliable or deals with performance issues.”
IaaS providers are generally not incorporating Software-Defined Wide-Area Networking (SD-WAN) into their end-to-end solutions as much as expected. SD-WAN has proven to help enterprises adapt to changing business requirements and take advantage of cloud services without sacrificing performance.
Plus, it’s another growing market for service providers to capitalize on — according to IDC, the SD-WAN market is expected to hit $4.5B by 2022, growing at 40.4% compound annual growth rate.
“The problem I have seen with many Infrastructure as a Service provider is that their offerings often don’t include anything pertaining to end-user connectivity. And when they do, they don’t ensure that the connectivity is secure and reliable or deals with performance issues.”
— Philbert Shih, Managing Director
Maximize IaaS Revenue with White-Label SD-WAN
Integrating Multapplied SD-WAN into your IaaS offerings is a game-changing endeavor with limitless potential for financial growth. According to Gartner’s Magic Quadrant for Cloud Infrastructure as a Service Report, customers expect IaaS providers to offer a broad array of services including hardware infrastructure, software infrastructure, management and governance capabilities, and pre-integrated value-added solutions.
Integrating Multapplied’s SD-WAN into your IaaS product and service portfolio gives your customers a way to connect to your cloud easily from any of their branches with always on-connectivity and gives you a branded, value-added, differentiated service — and helps you maximize IaaS revenue and increase margins.
Unlike Managed SD-WAN offers, Multapplied does not force you to use our network, or our data centers. As an IaaS provider, you deploy Multapplied’s SD-WAN in your data centers and use it to “groom” or manage customer connectivity, whether Internet, fiber or a hybrid network.
Own and Control the Infrastructure
Multapplied gives IaaS providers ownership and control of a white-label SD-WAN platform. You can sell Multapplied’s white-label SD-WAN under your own brand name and increase your core product sales (e.g. servers, rack space, IaaS) for both your colocation and cloud service provider customers.
Drive high monthly recurring revenue streams and margin for your IaaS business by keeping your customers happy. Extend your cloud right to the customers’ network edge and reap the following benefits:
- Meet SLAs by gaining full control and visibility of customer connectivity
- Build and control a virtual network that connects your customers to your infrastructure
- Gain support for simple, fast deployments and optimize professional services utilization
- Enhance your brand, differentiate your IaaS offering, and maximize IaaS revenue