January 14, 2013, 11:29 AM — Cloud service providers will seek out partnerships to offer a wider breadth of services that customers are increasingly demanding, a new report from research firm Current Analysis predicts.
The market has already seen some partnerships, but researcher Amy Larsen DeCarlo, principal analyst covering security and data center services for Current, expects to see even more alliances as customer use case requests outpace the ability of individual providers.
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Partnerships are fundamentally driven by the adoption of cloud computing services happening more quickly than many people anticipated, DeCarlo says. "There's still a long way to go," she adds, but customers are turning to cloud providers for business solutions that can save them money and provide value-added services.
But customers, particularly higher-end large enterprises, want complete end-to-end services, which individual providers have trouble delivering. Hence, partnerships are created.
Two such examples already seen in the market are alliances between AT&T and IBM, and between CSC and Sprint -- both announced last year and expected to have service offerings announced in the early part of 2013, DeCarlo says. In many cases, partnerships are not being used to plug deficiencies in the providers' service, but rather to create expanded capabilities that the provider would not be able to offer on its own.