Key Insights from Gartner’s Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services
Gartner notes that the capability gap between IaaS providers is beginning to shrink, and has combined evaluation of cloud infrastructure vendors with their cloud platform and platform-as-a-service (PaaS) offerings.
Gartner defines cloud infrastructure and platform services (CIPS) as: “standardized, highly automated offerings, in which infrastructure resources (e.g., compute, networking and storage) are complemented by integrated platform services.
Here are eight key takeaways from this year’s Magic Quadrant:
AWS and Azure are critical areas for MSP customers
In the report, Gartner analysed their support for the six major cloud platforms — Alibaba Cloud, Amazon Web Services (AWS), Google Cloud Platform, IBM Cloud, Microsoft Azure, and Oracle Cloud. Gartner’s research found that customers heavily concentrate on AWS and Azure above all other platforms.
Hybrid cloud and multicloud capabilities are essential
According to Gartner’s researchers, more than 80 percent of public cloud managed and professional services deals will require the provider to handle both hybrid cloud and multicloud capabilities by 2025. Hybrid cloud and multicloud deployments are quickly becoming the most common type of cloud infrastructure among enterprises.
Customers look to MSPs with strong service expertise
Gartner found that customers prefer strong service expertise as a key factor in evaluating and choosing managed service providers. MSPs who aren’t able to address complex compliance requirements and offer differentiated support for complex workloads risk being trivialized compared to other providers.
The MSP industry is amidst a M&A wave
Although the total number of MSPs has been increasing, it is being observed that the growth is slowing, as almost every significant MSP that will enter has entered. There has been MSP M&A activity particularly from 2019 and is still continuing along 2020, despite the COVID-19 pandemic. Year 2019 saw two major M&A’s of Onica by Rackspace and 2nd Watch (a Top 100 Public Cloud MSP that’s best known for its AWS business practices) by ST Telemedia.
The best MSPs are increasing their investment in employees.
MSPs have been heavily investing in employee recruiting, training and retention. This trend has further intensified as competition for these scarce resources becomes even fiercer. MSPs have even gone to the lengths of trademarking their recruitment, training, and talent assessment tools and processes to use as market differentiators with customers and potential employees alike.
Hybrid IT capability is the New Norm.
Gartner defines hybrid IT “as the blending of traditional services, public cloud services and private cloud services into a singular IT environment. Clients are not preferring public cloud, especially without some degree of transformation. Hybrid IT use-case requirements have become more common among Gartner clients.
Knowledge transfer is becoming a key requirement for MSPs.
Clients are demanding more training and knowledge transfer as part of the engagement. This may signal that the end-user population is willing and ready to learn, having successfully navigated their initial migrations and finding it difficult to procure talent through new hires.
MSPs are working hard to explain their value proposition for managed PaaS
MSPs have been improving their marketing narratives explaining how they add value to PaaS. This is being done through managed application development environments or through application design and development services.