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Most enterprises unhappy with their cloud, managed services providers

Kirsten Doyle
By Kirsten Doyle, ITWeb contributor.
Johannesburg, 06 Jun 2022

As many as 80% of enterprises are so frustrated with their existing cloud service providers (CSPs) and managed service providers (MSPs), they are actively looking to replace them within the next twelve months.

This was revealed by hybrid cloud management platform provider, CloudBolt Software, in its new report, dubbed “Filling The Gap: Service Providers’ Increasingly Important Role in Multi-Cloud/Multi-Tool Success”.

The report was based on a survey of over 300 senior-level employees at enterprises around the world – conducted on the Pulse research platform, a Gartner-owned research subsidiary.

The dissatisfaction among respondents centred around service providers’ inability to properly optimise cloud spend (60%); limited or non-existent multi-cloud options (58%); inability to better enable cloud automation (50%); inability to provide visibility across cloud spend (41%); and an inability to automatically remediate cloud spend inefficiencies (24%).

The issues causing such widespread dissatisfaction with these providers are the growing complexity of multi-cloud environments and a widening skills gap among both enterprises and service providers, said the authors of the report. 

Jeff Kukowsi, CEO of CloudBolt, said with multi-cloud architectures becoming more costly and complex each day, enterprises don’t have the in-house skills and resources to bring order to the chaos. This results in runaway costs, which is why many turn to CSPs and MSPs.

Unfortunately, it is not only enterprises who are suffering from a lack of skills. The human resources issues caused by the pandemic, along with the resulting “great resignation” and drop in employee loyalty, are causing major challenges when it comes to hiring and retaining employees with the skills that are in such desperate need today.

“This skills gap among providers prevents them from becoming the deep, strategic partner their customers need,” he added.

However, respondents still overwhelmingly believe that MSPs and CSPs can enhance and improve their multi-cloud and multi-tool infrastructure and fill the gaps they have internally.

In particular, 85% believe their providers can more easily pull together all aspects of digital transformation than the enterprise alone, and 91% believe they can increase agility so the enterprise can better capitalise on cloud-related initiatives.

Also, 82% said they believe their providers can quicken time to market for their customers, and 81% said they think their MSPs and CSPs can save them money.

Most notably, a staggering 97% said they would be willing to pay a premium to a service provider that delivered on the current shortcomings they identified with their current vendor, and 79% said they would pay 5% or more.

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