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Service Providers and The Stack Wars: Trust and Competence

By Kong Yang

Service providers, especially managed and cloud service providers, are under tremendous pressure to increase both their top and bottom line. For some, it will become an existential crisis of Stack Wars: squeezing from above are cloud giants like AWS, Azure, and GCP and from below are the increasing costs and complexities of keeping the lights on with traditional platforms, portfolios, and service provider programs. And yet the service provider market continues to grow. Multiple analyst firms have evaluated the cloud service provider market with spending in the tens of billions of dollars and growing at a double-digit Compound Annual Growth Rate (CAGR).

The Cloud Paradox

In a recent a16z blog post, Martin Casado and Sarah Wang of Andreessen Horowitz discuss the cloud paradox: “You’re crazy if you don’t start in the cloud; you’re crazy if you stay on it” because “If you’re operating at scale, the cost of cloud can at least double your infrastructure bill.” They share data across a16z portfolio of companies as well as other public companies. It’s another set of data in the Stack Wars; but it underscores the fact that enterprises are focusing on where they run their apps and where they store their data because there are both financial and cost benefits to getting the solution right.

Public cloud providers stake their claim as the Galactic Empire with their legions of clones extending their mind share, market share, advocacy share, and sheer size. Unfortunately, landing and expanding in the cloud just to get there can lead to costly consequences for organizations. Instead, organizations need to focus on what successful business outcomes look like. Enterprises are looking for help to cross the gaps of trust, talent, and competency. Service providers can serve as that bridge to successful outcomes on an enterprise’s digital journey leveraging hybrid and multicloud.

May the Platform, Portfolio, and Program Be With You

Service providers and their ability to meet customer needs are influenced by the platform, portfolio of services, and program that they choose to use. To start with, the platform and portfolio technology that a service provider uses to build their cloud services marketplace play a key role in the end customer’s experience. That platform and portfolio need to be well architected with the freedom to choose key building blocks like hardware and hypervisor. Next, the service provider program that they agree to be a part of influences the economics of their services depending on the complexities in the program’s terms and conditions.

Nutanix Elevate Service Provider Starter Pack

Nutanix Elevate Service Provider Starter Pack

In keeping with our history of simplification, Nutanix launched the Nutanix Elevate™ Service Provider Program. This allows for a quick start for new service provider partners. Nutanix is running a Service Provider Starter Pack promotional offer for new partners joining the Elevate Service Provider Program. This promotional offer includes training, certification, and the right Nutanix software to help our partners bring their differentiated services to production and start generating revenue. This offer is available immediately. Terms and conditions apply.

The Nutanix Elevate Service Provider program is available now to service providers worldwide. More information on how to sign up, accompanying benefits, and the program guide are available at https://www.nutanix.com/partners/become-a-partner. Partners can also learn more about the program by signing up for the upcoming webinar on June 30, here.

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