Infrastructure service suppliers must stop fixating on how they can compete with the likes of Amazon Web Services and instead focus where they can add value.
That is the opinion of Kate Hanaghan, analyst for TechMarketView. In a report entitled Infrastructure Services Supplier Landscape 2014, Hanaghan suggests that established providers of traditional infrastructure need to be ‘shoring up their defences’.
“That means being clear about where you want to compete with AWS et al, and ascertaining how you will be different from them,” Hanaghan explains.
“Players that are able to ‘remould’ their legacy businesses around growth areas, who can develop compelling cloud propositions, and who can perform supremely well commercially, will be the ones that survive.”
While cloud continues to dominate the minds of many a decision maker, the analyst points out that with so much red tape holding companies back, there are still plenty of miles left in traditional infrastructure.
The challenge for suppliers, Hanaghan says, is striking a balance between serving both leading edge customers and lagging customers.
“Complex times lay ahead, and the longer term winners will be those that can manage change the best, by tapping into new opportunities while addressing the very significant opportunity that remains in the form of legacy infrastructure services,” she concludes.