The Channel Futures 2Q23 Quarterly Market Outlook survey of over 150 MSPs and technology advisors revealed that despite macroeconomic conditions, MSPs are projecting an uptrend in sales and profit, with 71% projecting to increase full-year sales and 69% projecting to increase full-year profits in 2023. Technology Agents continue to invest in their businesses, with 33% stating they increased their full-time employee headcount in 2Q23. MSPs and TAs prioritize lead generation for GTM success and are increasingly leveraging generative AI to optimize their processes and tailor their offerings.
A survey of 500 UK companies employing fewer than 250 people found that almost two-thirds of SMEs that use cloud computing services will take steps to combat their rising costs by the end of 2023, with a third planning to reduce the amount of data they store in the cloud and 24% reducing the number of cloud services they used. The report suggests that increased cloud costs are causing some SMEs to move some of their data onto on-premises storage systems to mitigate the increases.
Per two studies by Synergy and Forrester, some customers are questioning the move to these services and have started to bring workloads back in-house. Operating applications and services in the cloud can be just as costly as owning and managing your infrastructure for this purpose, and sometimes more. Cost pressures are forcing organizations to look more closely at their cloud investments, and 67% of enterprises surveyed say they are not seeing the expected value from the cloud.
It can be entirely reasonable to use on-premises to combat cloud costs. What can also be true is using the cloud to combat cloud costs. Because it’s dynamic, a business can scale up and down.
Let’s not lose sight of the fact that providers expect to gain ground, too. That means growth, which will come from multiple levers, including existing customers… who we’re observing are looking to save cloud costs. Do I see a match made in heaven for cost management? Of course, I do, and so do you.