1. Market Research
  2. > IT Services
  3. > Hosting Market Trends

To Win the Cloud Wars, Invest in Marketing, not Technology 

  • January 2016
  • 12 pages
  • Frost & Sullivan
Report ID: 3595967

Summary

Table of Contents

To Win the Cloud Wars, Invest in Marketing, not Technology

Introduction

Back in 2008, when cloud computing was just beginning to grip the industry’s consciousness, Oracle CEO Larry Ellison issued his infamous rant about the hype surrounding the new model: “The computer industry is the only industry that is more fashion-driven than women’s fashion… Orange is the new pink; and Cloud is the new SaaS; Cloud is the new virtualization…It’s really just complete jibberish.”

Regarding his own company’s plans to play in the new field, he said, “I don’t understand what we would do differently in the light of cloud computing, other than change the words in some of our ads.” 2 In terms of technology, Ellison had a point. There was nothing new about cloud; nearly all the technology and architectural components that go into a cloud have been around for decades: e.g., server virtualization, multi-tenancy, distributed computing, utility-based metering and billing, and network-delivered software.

What Ellison grossly underestimated, however, was the extent to which technology must be packaged, priced, and promoted to resonate with potential buyers. That is the domain of marketing. Thanks, in large part, to insightful marketers at Amazon Web Services (AWS) and other early cloud service providers, the “jibberish” surrounding cloud took root with businesses. The market responded positively to the positioning of the cloud as simple, self-service, low-cost, on-demand, nocommitment, and scalable.

Today, cloud service providers are facing a new challenge. As the market matures, and enterprise preferences become clearer, the Infrastructure as a Service (IaaS) market is beginning to consolidate and coalesce.
Cloud providers now offer IaaS services with similar technology, features, and functionality, leading many to characterize IaaS services as a commodity.3 In this context, it is even more important for providers to differentiate their services via characteristics that fall within the domain of marketing, rather than technology (e.g., price, promotion, and product definition).

Yet, in Stratecast’s observation, many technology companies, which are often run by engineers like Ellison, continue to underestimate the importance of marketing; instead, relying on their technology research and development organizations to introduce innovations. In this SPIE, Stratecast examines several service characteristics that shape buyer perceptions of cloud infrastructure services, as revealed in the 2015 Stratecast Cloud User Survey.

These include brand leverage, pricing strategies, service level agreements, interoperability positioning, and customer support. We also offer marketing recommendations for cloud service providers that are looking to improve their competitive positioning.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Ahmad helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Disaster Recovery as a Service Market by Service Type, Service Provider, Deployment Model, Organization Size, Vertical And Region - Global Forecast to 2022

  • $ 7150
  • Industry report
  • September 2017
  • by MarketsandMarkets

Benefits of fast recovery and cost effectiveness are driving the Disaster Recovery as a Service (DRaaS) market The DRaaS market is expected to grow from USD 2.19 billion in 2017 to USD 12.54 billion by ...

Managed Services Market by Service Type, Deployment Type, Organization Size, Vertical, and Region - Global forecast to 2022

  • $ 7150
  • Industry report
  • August 2017
  • by MarketsandMarkets

“Rising IT infrastructure and growing number of compliances are driving the managed services market.” The managed services market size is expected to grow from USD 152.45 billion in 2017 to USD 257.84 ...

Cloud Encryption Market by Component, Service Model, Organization Size, Vertical And Region - Global Forecast to 2022

  • $ 5650
  • Industry report
  • August 2017
  • by MarketsandMarkets

Stringent regulatory compliance and increasing concern for cloud data security are driving the cloud encryption market The cloud encryption market is expected to grow from USD 645.4 million in 2017 to ...


ref:plp2016

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.