Every year technology professionals anticipate the release of Gartner’s 2018 Magic Quadrant for Public Cloud Infrastructure Managed Service Providers. As the premier analyst report in the marketplace, IT teams often base many of their yearly initiatives on Gartner’s advice and analysis. Set to be released on March 2nd (according to the company’s release schedule), the new Magic Quadrant will address the critical role managed service providers play in the implementation of cloud solutions. At Solutions Review, we’re just as excited as you are. As we near the eve of Gartner’s newest release, the editorial staff at Solutions Review have been discussing and debating some of our own bold predictions for this year’s report.
Below we have compiled this list of the three things we expect to see once the report becomes available.
Significant Market Consolidation in the Coming Years
Take a look at the market and you’ll notice that most of the space’s veteran providers have only been around for roughly six years tops. It only makes sense that in a market so young, there’s still a healthy amount of competition. The vast majority of providers in the market place are very small.
Gartner mention last year that even if the overall vendor is very large, their hyperscale cloud MSP business is usually under $100 million in revenue. While you may expect otherwise, the large traditional outsourcing providers often have very small hyperscale MSPs, even if they have significant cloud consulting practices.
Noting the small size of many of the MSPs, we’re predicting that there will be significant market consolidation over the next couple of years. We can see some of the more promising small managed service providers being acquired by some of the recent leaders in the industry including Accenture and CloudReach.
A Major Jump from Private Cloud to Public
While private cloud environments deliver a type of cloud computing all that different than in public clouds, they often require more complex virtualization, technical automation, resource monitoring, and many other expensive resources. Because of this massive migration, we can expect that managed service providers with public, private, and hybrid cloud offerings will see their position in this year’s edition of the Gartner Magic Quadrant improve significantly.
Security Will Establish Itself as a Significant Selling Point for MSPs
I think we can all agree that the last couple of years haven’t been a golden age in terms of cybersecurity. Between Equifax, Yahoo, and Spectre, it makes sense that security will be at the forefront of everyone’s minds as they look for a Managed Service Provider for their public cloud.
Last year we saw MSPs such as 2nd Watch, Cloudnexa, and CSC highlighted in Gartner’s Magic Quadrant for their dedication to helping organizations meet public cloud security requirements. We can expect these vendors that have displayed impressive dedication to security to stand apart from the pack.
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