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Service Providers

Enabling Service Providers to New Revenue Streams: Introduction to New Enterprise Infrastructure Services

by Doug.Dunbar on ‎07-18-2012 07:41 AM - last edited on ‎10-28-2013 11:18 PM by bcm1 (3,490 Views)

To help service providers and network operators better understand the IaaS market opportunity, Brocade commissioned WaveLength Market Analytics to conduct an online study of large and medium-sized enterprises that outsource at least one IT function. Among the key research questions, Brocade wanted to know developing trends and adoption drivers in the cloud services market. We also wanted to know enterprise IT priorities, storage and data center issues, plans for IPv6, and how enterprises expect to buy new services from service providers. In this first of six blog posts on the study, I am going to talk about enterprise outsourcing and enterprise IT priorities that create new opportunities for service providers.


Let’s first examine outsourcing, which includes both managed services and cloud services. According to our research, it is already pervasive across all infrastructure functions; 70% of large enterprises outsource network management and 70% of medium-sized enterprises outsource storage management. The market is clearly transitioning to cloud services as 60% of large enterprises already deploy some type of cloud service.


Turning to IT management priorities, participating enterprises seek to improve performance, simplify management, and increase agility. Fifty-eight percent of medium-sized and 50% of large enterprise respondents say their top IT priority is to improve user experience, service quality and reliability. The second most common IT management priority with 45% of both medium and large enterprise respondents is accelerate application development time/improve agility, while the next highest response with 44% of large enterprises is mitigate risks of technology change.




So how do enterprises intend to follow their IT management priorities? Within the next year, 42% of large enterprises respondents say they plan to both increase use of infrastructure services and to deploy a two-tier data center network. Meanwhile, 52% of medium-sized enterprises plan security improvements and 48% plan to virtualize more physical servers. In sum, enterprises are deploying virtualization and outsourcing with plans to continue both trends. This is good news for service providers.


In this series of six weekly blog posts, I will share survey results. Come back each week to learn more about how enterprises are willing to buy new infrastructure services that will generate new revenue streams for service providers.