Simon Waller, regional director, EMEA and US at Epsilon, highlights how service providers can gain sustainable growth opportunities by reselling high-performance network services.
The rapidly growing cloud market is driving the need for network connectivity across the globe. In fact, the worldwide public cloud services market was estimated to have grown 6.3 per cent in 2020 to total $257.9 billion, up from $242.7 billion in 2019, according to Gartner. With a growing number of businesses starting to make digitalisation the top priority, the demand for cloud is only set to accelerate.
In the technology industry, 64 per cent of all dollars flow indirectly, with the channel model contributing to $2.26 trillion according to Forrester. The growth of cloud presents a huge opportunity for service providers to expand their offerings and serve growing enterprise demands globally.
Partnering can remove barriers to success and deliver new and powerful solutions that support growth across the value chain. Service providers can gain sustainable growth opportunities by reselling high-performance network services, with partner models focused on profitability and mutual, long-term growth.
The networking opportunity
With a growing number of businesses accelerating their digital transformation and utilising the cloud, the underlying network is becoming increasingly important. Networking is the key to transformation. Without solid networking, service providers would struggle to keep up in a rapidly changing market. They must be able to keep up with the pace of change and build new capabilities that can help them scale and meet the changing needs of customers across verticals.
According to IDC, the spending on the technologies and services that enable digital transformation worldwide is expected to amount to $2.3 trillion by 2023. On top of this, Forrester predicts global public cloud infrastructure market to grow 35 per cent to $120 billion in 2021.
The ‘last mile’ is an important aspect for any business selling connectivity services, as it can guarantee high-performance connectivity between every branch office for enterprise customers. However, the connectivity market has pivoted, and done so at pace. Driven by increased staff mobility and prevalence of mission critical, cloud-based applications, network demand has changed drastically.
When the limitations of traditional network procurement, delivery and assurance are considered in parallel to this, such as 90-working day lead times, laborious order processes and slow revenue generation, it becomes clear that some aspects of the network need to be revisited.
Leveraging the right expertise enables businesses to create a differentiated experience and grow their margins in a competitive market. They need to highlight not just the connectivity of the network but the customer experience of using the network. This is the key to transforming the value of the offering.
Service providers can easily ramp up their offerings by adding new services to their portfolio with the right technology partner. By utilising a channel model, it is simple to gain the edge in a competitive market and provide new experiences to customers across the globe.
The ‘middle mile’ is the network segment between local access and destination network – the stage just before the ‘last mile’ of the supply chain. A software-defined networking (SDN) or network as a service (NaaS) platform can work as an enablement layer, linking local access technologies with cloud-based applications and Internet Exchanges. This can complement and enhance a channel partner’s portfolio, providing the means for applications and technology to interoperate efficiently in line with changing and often short notice demands.
The right solution will provide configurable toolsets that enable partners and their clients to enjoy end-to-end management and control, whilst the provider achieves swifter book to bill and improved operational efficiency.
NaaS platforms also enable service providers to deliver on-demand connectivity for their enterprise customers, white-labelled under their own brand. Many platforms offer a variety of solutions as a one-stop-shop, enabling service providers to offer all kinds of networking services to customers such as data centre interconnect (DCI), cloud connectivity and remote peering. With on-demand cloud interconnect, partners and customers have an array of new opportunities at their fingertips.
The next level
Service providers can simplify their networking needs with a channel model built for profitability and long-term growth. With the right partner, it can be simple to expand service capabilities, reach new global and local markets, and offer guaranteed quality of service and experience to boost customer loyalty.
With business models changing quickly to support cloud-based applications and services, it is important for service providers to get the networking expertise they need from a partner, as well as an automated approach for connecting hybrid cloud scenarios.
To remain competitive in the rapidly growing connectivity market, service providers need to go beyond traditional network services and expand their portfolio with connectivity services that can meet growing demands from enterprises.
To future-proof and take their business to the next level, service providers need to bring flexibility, scalability and adaptability into their operations, with high-performance connectivity services to connect cloud-based platforms and services on a global scale for enterprises. With the right partner model, it can be simple to expand into new markets, serve new customer needs and gain a solid foundation for long-term success.