Monday Morning Impact – December 9
Canalys: Global cloud spending surged 21% in Q3 2024
Global Q3 spending on cloud infrastructure services increased by 21% year on year, reaching US$82.0 billion, according to recent data by Canalys. Customer investment in the hyperscalers’ AI offerings is believed to have fueled growth, prompting leading cloud vendors to escalate their investments in AI.
The rankings of the top three cloud vendors – AWS, Microsoft Azure and Google Cloud – remained stable from the previous quarter, with these providers together accounting for 64% of total expenditure. Total combined spending with these three providers grew by 26% year on year, and all three reported sequential growth. Market leader AWS maintained a year-on-year growth rate of 19%, consistent with the previous quarter. But it was outpaced by both Microsoft, with 33% growth, and Google Cloud, with 36% growth. In actual dollar terms, however, AWS outgrew both Microsoft and Google Cloud, increasing sales by almost US$4.4 billion on the previous year.
With the increasing adoption of AI technologies, demand for high-performance computing and storage continues to rise, putting pressure on cloud providers to expand their infrastructure. In response, Canalys says leading cloud providers are prioritizing large-scale investments in next-generation AI infrastructure. To mitigate the risks associated with under-investment – such as being unprepared for future demand or missing key opportunities – they have adopted over-investment strategies, ensuring their ability to scale offerings in line with the growing needs of AI customers.
“Continued substantial expenditure will present new challenges, requiring cloud vendors to carefully balance their investments in AI with the cost discipline needed to fund these initiatives,” said Rachel Brindley, Senior Director at Canalys. “While companies should invest sufficiently in AI to capitalize on technological growth, they must also exercise caution to avoid overspending or inefficient resource allocation. Ensuring the sustainability of these investments over time will be vital to maintaining long-term financial health and competitive advantage.”
Channel Impact®
Channel partners should anticipate similar growth trajectories continuing on this path well into 2025.
Intelisys Introduces Revamped SaaS Marketplace
Intelisys, a ScanSource division based in Greenville, SC, is bolstering its software as a service (SaaS) marketplace. Formerly intY US, the re-flagged “Channel Exchange” promises a comprehensive platform for partners to streamline sales processes and access a curated catalog of SaaS technology solutions.
“We understand the need for our partners to invest in new and emerging technologies, while also accessing tools and support that can help them diversify and build their capabilities,” said Katherine White, Vice President, Channel Exchange. “In support of that, we are offering a modern platform experience to streamline sales processes and provide a comprehensive ecosystem of SaaS technology solutions.”
In addition to the curated line card of SaaS offerings, features include automated quoting and invoicing, click-to-purchase licensing and provisioning, real time reporting, subscription and license management, end user segmentation, and white-label storefronts and custom domains.
“As the ecosystem continues to evolve, we are excited about the comprehensive opportunities that Channel Exchange offers our sales partners to accelerate their growth strategies with routes to market that best align with their business needs,” said Ken Mills, President of Intelisys.
Channel Exchange is schedule to launch on December 9, 2024.
Channel Impact®
The platform also provides access to software specialists, sales expertise and support, in addition to a curated portfolio of SaaS solutions.
Nucleus Security Expands Channel Program
Nucleus Security, a Sarasota, Florida-based vulnerability management vendor, has announced the expansion of its partner program, adding a tiered structure designed to incentivize partners with more favorable terms and benefits for partners with higher levels of commitment. The company has also added new sales and technical resources to better support its fast growing program, including a new certification program and partner portal that offers a dedicated platform for field demos and customer training. Additionally, Nucleus has more than doubled its internal channel team including the hire of a channel enablement engineer tasked with ensuring resellers’ solution architects are fully trained and adept at deploying the product.
“From day one, we’ve been a channel-first organization, and now we’re doubling down on that,” said Jeff Beavin, vice president of channel, Nucleus Security. “We’ve expanded our expertise, our reach, and our ability to provide trusted resources to empower partners to sell and successfully implement the Nucleus Security platform to grow their business and revenues.”
In March, Nucleus Security announced its FedRAMP authorization at impact level Moderate on the FedRAMP marketplace. This status opens doors for Nucleus partners to more easily build their government business with support for unique federal controls and requirements for continuous monitoring, compliance reporting, and vulnerability status tracking.
Channel Impact®
The program is intended to help partners to benefit from the growing market for vulnerability and risk management (VRM). In addition to generating additional income, the company claims that its platform complements existing vulnerability management solutions, allowing partners to continue to grow sales of their current solutions and services.
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