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Massive Rethinking of Service Provider Relationships as Multi-Cloud Complexity Grows and Skills Gap Widens

Massive Rethinking of Service Provider Relationships as Multi-Cloud Complexity Grows and Skills Gap Widens
New Study reveals significant opportunity for providers able to deliver comprehensive multi-cloud expertise and capabilities

CloudBolt Software, the leader in automating, optimizing, and governing hybrid cloud, multi-tool environments for global enterprises, today released its latest research report, Filling The Gap: Service Providers’ Increasingly Important Role in Multi-Cloud/Multi-Tool Success. The report is based on a survey of over 300 senior-level employees at enterprises around the world – conducted on the Pulse research platform, a Gartner-owned research subsidiary.

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The survey aimed to uncover enterprise sentiment regarding cloud-oriented services providers – and identify exactly which services and capabilities enterprises need providers to enable and fulfill in increasingly multi-cloud/hybrid cloud environments. The results were alarming – 80% of enterprises said they are so frustrated with their existing provider, they are actively looking to replace them within the next twelve months.

What is causing such widespread dissatisfaction with CSPs and MSPs? The core issues are growing complexity in multi-cloud environments, and a widening skills gap among both enterprises and service providers.

“With multi-cloud architectures growing more complex and expensive, enterprises lack the in-house personnel and expertise to tame the chaos and runaway costs that arise, so they turn to CSPs and MSPs,” said Jeff Kukowsi, CEO of CloudBolt. “However, service providers are experiencing a skills gap of their own. The personnel issues caused by the pandemic, along with the resulting Great Resignation and decrease in employee loyalty, have created severe challenges in hiring and retaining employees with the skills that are so desperately needed today. This skills gap among providers prevents them from becoming the deep, strategic partner their customers need.”

The dissatisfaction among respondents centered around service providers’ inability to properly optimize cloud spend (60%); limited or non-existent multi-cloud options (58%); inability to better enable cloud automation (50%); inability to provide visibility across cloud spend (41%); and an inability to automatically remediate cloud spend inefficiencies (24%).

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  • 85% believe their MSPs/CSPs can more easily pull together all aspects of digital transformation than the enterprise alone
  • 91% believe their MSPs/CSPs increase agility so the enterprise can better capitalize on cloud-related initiatives
  • 82% believe their MSPs/CSPs reduce time to market for their customers
  • 81% believe their MSPs/CSPs save them money

Most significantly, a whopping 97% said they would be willing to pay a premium to a service provider that delivered on the current shortcomings they identified with their current vendor; 79% said they would pay 5% or more.

“Our latest CII report reveals a golden opportunity for service providers in the current multi-cloud landscape,” said William Norton, Director of CloudBolt’s MSP/CSP Practice. “Customers are telling them exactly what capabilities they need, and that they’re willing to pay a premium to get them. The study aligns with what we hear from our global MSPs/CSPs that leverage CloudBolt to provide essential new capabilities that accelerate their customers’ success. Ultimately, it’s about filling the skills gaps, automating wherever possible, and adding more value at every turn. As the survey revealed, service providers able to offer what customers need most will experience a watershed moment where they significantly increase net-new business while profoundly reducing the risk of churn.”

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[To share your insights with us, please write to sghosh@martechseries.com]

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