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Public Cloud in 2013: Good Stride Forward

Radhika Nallayam | Feb. 7, 2013
Although it isn't as popular as the private cloud model, the public cloud is set for big growth.

Although it isn't as popular as the private cloud model, the public cloud is set for big growth.

Public cloud has always been approached with nervousness and skepticism mostly owing to the never-ending issues around security, data protection and tricky SLAs. Even after years of discussions, testing and implementation, this model elicits some degree of brooding.

Solution providers, however, seem to have spotted clear opportunities. More than 25 percent of the respondents of ChannelWorld's State of the Mart 2013 survey wouldn't otherwise reveal their intent to get into this market. While private cloud is considered to be the market where the actual money lies, public cloud seems to be equally promising, especially for tier-2 solution providers.

The reason isn't vague: Public cloud adoption in the country is driven largely by the SMB segment, which has always been a sweetspot for such solution providers. Though the large enterprises are inclined towards private cloud implementations, they do fall back on the public model for certain specific requirements. This makes the public cloud market an interesting space to bet on.

Charting the Right Course

Analysts believe that the market will certainly grow, though the growth rate would remain unchanged as compared to 2012. Biswajeet Mahapatra, Research Director, Gartner, says, "The public cloud market is not going to witness any great change, and the growth rate will remain almost the same. The SMB sector will continue to be the largest driver for this market, especially services industries like education, hospitality, etc." He believes that 2013 will see a lot of custom-made and vertical specific solutions being offered on a public cloud model, which will further propel adoption.

The solution providers on the hand are ready to play their cards right this year. And for serious players, the options are plenty. One can choose to be a cloud broker/consultant, or a cloud service provider or resell a vendor's cloud offerings.

Hyderabad-based Choice Solutions for instance has found multiple profitable models. The SI offers consulting services to its customers who want to migrate to any type of cloud. This required very significant investments to develop the right consulting capabilities and experienced manpower.

At the same time, the company recently decided to try its hand at offering cloud services. To begin with, Choice Solutions will be offering DR and back-up as a service to its existing SMB customers. "We are planning to offer these services only to SMBs initially, because the enterprises have totally different service level expectations. Besides, they are more interested in working with large solution providers. And if we take it to the existing customers, we don't have to rebuild the trust factor. So our idea is to build a sizeable customer base among SMBs, before we move to enterprise class customers," says Jagannath Kallakurchi, CEO and MD, Choice Solutions. In his experience, both consulting and services are far more profitable than product or solution selling, and that's where he sees the future.


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