This content is part of the Essential Guide: Consumption-based, pay-for-what-you-use IT as a service

Cloud consumption models, services to see uptick in 2022

Cloud computing skills shortages are changing the way businesses think about in-house IT and making them more likely to tap external service providers; other IT channel news.

Enterprises this year will be turning to cloud consumption models and external service providers to deal with resource constraints and skills shortages.

Senior IT managers most frequently cited cloud/IT architecture and cybersecurity as areas where their IT organizations face a "problematic shortage of existing skills," according to an Enterprise Strategy Group (ESG) survey. More than half of the respondents cited cloud/IT architecture, while 48% identified cybersecurity. ESG, a division of TechTarget, polled 706 managers in North America, Western Europe and the Asia-Pacific region.

For managed cloud and security partners, the dearth of in-house skills should generate demand for their service offerings. The resource crunch could also open opportunities for partners to introduce cloud consumption models within clients' on-premises data centers. IT services executives expect to see the cloud-as-an-operating-model approach as one of the key technology trends of 2022.

Cloud orientation

ESG's "2022 Technology Spending Intentions Survey" reinforces their views. "The most common priorities for significant data center modernization investments over the next 12 to 18 months involve initiatives that are oriented to the cloud," the report stated. Nearly a third of the IT managers polled cited plans to deploy a software-defined data center strategy and use AIOps technology. And 30% said they would increase their use of hyperscale cloud technologies in their data centers.

Bill LundellBill Lundell

Bill Lundell, director of syndicated research at ESG, said the move toward in-house cloud consumption models stems from resource constraints in IT organizations. "They cannot use DevOps, Agile and other methodologies in the cloud and then develop on premises in another manner," he said. "So, the infrastructure must evolve to be more cloud-like. This is the whole concept of infrastructure-as-code through the entire application lifecycle."

Cost also plays a role in the cloud-oriented data center approach: "It is still cheaper in real dollars, in many cases, to build on premises than deploy to the cloud."

Coping with skills shortages

They cannot use DevOps, Agile and other methodologies in the cloud and then develop on premises in another manner.
Bill LundellDirector of syndicated research, Enterprise Strategy Group

Building on-premises infrastructure along cloud lines is one way IT departments can cope with skill shortages. Tech managers will also look to improve their use of public cloud infrastructure services such as AWS and Microsoft Azure, Lundell said. Organizations are expected to tap service providers, regardless of their cloud methods.

"They'll use more services, whether it's assessment services for public cloud infrastructure or outsourcing these functions and responsibilities to MSPs," Lundell said.

The same pattern will hold true for cybersecurity, where IT organizations will be looking to add more services. Other measures will include providing more training for existing security personnel, adopting AI and machine learning to supplement human analysts and automating security processes to boost productivity, Lundell added.

2nd Watch acquires Aptitive

2nd Watch, a cloud services company headquartered in Seattle, has acquired Aptitive, a cloud data and analytics company with a specialization in Snowflake.

Aptitive, based in Chicago, offers a mix of advisory, consulting and implementation services across data engineering, data analytics and data science, noted Doug Schneider, CEO at 2nd Watch. Aptitive will combine with 2nd Watch's data engineering practice to create a data insights practice group. The acquired company will provide the core of the new practice, Schneider said.

Aptitive will also contribute its focus on Snowflake's cloud data technology. Schneider said Snowflake is one of around two dozen elite-level Snowflake partners worldwide. "That's an added element they bring to the table," he said, noting more 2nd Watch clients are requesting assistance with the Snowflake platform.

2nd Watch and Aptitive are both multi-cloud service providers, working in the AWS, Azure and Google Cloud Platform environments. As for vertical markets, the Aptitive deal lets 2nd Watch expand in the media and entertainment, healthcare and retail sectors.

M&A updates

  • Pax8, a cloud distributor, will gain access to the Baltic states with its acquisition of TVG, a cloud services and software distributor in Riga, Latvia. TVG works with vendors including Microsoft, Adobe, Corel, Altaro, TeamViewer and ManageEngine. In previous international moves, Denver-based Pax8 last year acquired Resello, a cloud services distributor with headquarters in the Netherlands, and Wirehive, a cloud hosting and consulting firm in the United Kingdom.
  • NTT DATA Services, an IT services company based in Plano, Texas, has acquired Chainalytics, a supply chain consulting and analytics firm. The transaction expands NTT DATA's supply chain consulting capabilities, according to the company.
  • Investment firm Carlyle has acquired Involta, a data center company and MSP in Cedar Rapids, Iowa.

Other news

  • Pax8 is providing Axcient's x360Recover Direct-to-Cloud under the companies' cloud distribution partnership. Pax8 said it is the first distributor to offer x360Recover, a business continuity/disaster recovery offering, to the IT channel.
  • Zoom Communications launched a marketing automation platform for its partners. Zoom Partner Demand Center aims to help partners reach prospects through email campaigns, web content syndication, social media marketing, events marketing, video marketing and digital ads and banners.
  • Carahsoft Technology Corp., a government IT solutions provider in Reston, Va., will distribute CyCognito's cybersecurity offerings in the public sector. CyCognito specializes in external attack surface management and protection.
  • High Wire Networks Inc., a managed security services provider (MSSP), rolled out a cybersecurity offering built on Ericom Software's zero-trust cloud security platform. High Wire, based in Batavia, Ill., is collaborating with its Overwatch Managed Security business unit on the offering, which the MSSP plans to deliver through a network of more than 500 managed services partners.
  • NWN Carousel, a Waltham, Mass., cloud communications service provider, promoted Dan Tassone to chief revenue officer and Erin Jordan to vice president of HR. Tassone, prior to NWN's 2021 acquisition of Carousel Industries, led the latter company's sales organization. Jordan was previously director of HR at NWN Carousel.

Market Share is a news roundup published every Friday.

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