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Channel crucial to cloud infrastructure players achieving enteprise growth

Canalys has highlighted growth in the cloud infrastructure market but concluded that further growth is going to involve more channel involvement

The public cloud giants are going to have to work with the channel if they want to achieve their growth ambitions in the enterprise market.

An analysis of the state of the cloud infrastructure market from Canalys has revealed not only very strong growth in the area but a growing realisation that partners are they way to gain more market share.

The analyst house revealed that in Q1 the worldwide cloud infrastructure market was up 42% year-on-year with AWS out in front as the market leader, followed by Microsoft, Google and IBM.

Microsoft might be lagging behind Amazon AWS but its growth year-on-year was better than its rivals and indicated that Azure is growing in popularity.

“Competition for enterprise customers is intensifying among leading cloud service providers, which are investing heavily to secure key national and global accounts,” said Canalys research analyst Daniel Liu.

With the hype surrounding digital transformation in full flow the ability of channel partners to have conversations with customers that involve cloud is also something that gives them an upper hand.

“Timing is crucial, as many large accounts are assessing, formulating and executing strategies to move existing workloads and infrastructure to the cloud, and develop new types of workloads as part of digital transformation initiatives," added Liu.

Not surprisingly the competition between the big infrastructure players was now turning on building channel numbers.

“The channel has become integral to winning in the enterprise, with top cloud players focusing on channel expansion plans,” said Canalys senior analyst Jordan De Leon.

AWS is expanding its channel numbers but Microsoft has an advantage because of its existing reseller base.

De Leon noted that Google had been making efforts to catch up and had revamped its partner programme, "But to rival the others, it needs to demonstrate its enterprise readiness and enhance its credibility. To achieve this, it needs to sustain investment in both technology and go-to-market, and continue to highlight key customer wins". 

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