IDC: Cloud IT Infrastructure Revenues Continue to Expand Despite Slow Down in Spending
Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, grew 11.4 percent year over year in the first quarter of 2019. That’s according to IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker, which pegged the corresponding dollar amount to $14.5 billion. The Framingham Massachusetts-based market researcher also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $66.9 billion – down 4.5 percent from last quarter’s forecast – with slower year-over-year growth of 1.6 percent.
Vendor revenue from hardware infrastructure sales to public cloud environments in 1Q19 was down 13.4 percent compared to the previous quarter (4Q18) but increased 8.9 percent year over year to $9.8 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings. After a strong performance in 2018, IDC expects the public cloud IT infrastructure segment to cool down in 2019 with vendor revenue dropping to $44.5 billion, a 2.2 percent decrease from 2018.
Overall, IDC says the IT infrastructure industry is at a crossroads in terms of product sales to cloud vs. traditional IT environments. In 3Q18, vendor revenues from cloud IT environments climbed over the 50 percent mark for the first time but has since fallen below this important threshold. In 1Q19, cloud IT environments accounted for 48.8 percent of vendor revenues. For the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.4 percent. Over the long-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.
“As the overall IT infrastructure goes through a period of slowdown after an outstanding 2018, the important trends might look somewhat distorted in the short term,” said Natalya Yezhkova, research vice president, Infrastructure Systems, Platforms and Technologies at IDC. “IDC’s long-term expectations strongly back continuous growth of cloud IT infrastructure environments. With vendors and service providers finding new ways of delivering cloud services, including from IT infrastructure deployed at customer premises, end users have fewer obstacles and pain points in adopting cloud/services-based IT.”
Most regions grew their cloud IT Infrastructure revenues in 1Q19. Middle East & Africa was fastest growing at 35.3 percent year over year, followed by Western Europe at 25.4 percent year-over-year growth. The U.S. was measured at 10.7 percent.
The data provide a guide by which channel partners can compare their own sales performance against the findings of the tracker report.
Bitdefender Adds New Support for MSPs
Bitdefender has rolled out an updated MSP program with revamped incentives expected to promote increased profitability, and accelerated return on investment. The new enhancements will be added to the company’s existing Partner Advantage Network Program as part of the security vendor’s overall global go-to-market strategy.
“The introduction of the MSP Program, and updates to the PAN, will ensure that our valued partners continue to benefit by being able to add new services and technologies to their portfolios,” said Cristian Corabu, senior director of worldwide enterprise marketing. “This expanded channel portfolio will scale rapidly and enable both Bitdefender and its partners to excel.”
The program features a multi-level architecture, which will give MSPs varying levels of access to marketing development funds, dedicated operational and business support and access to Bitdefender’s expert team of technical account managers.
Bronze partners are entry-level participants who will receive tier-based pricing, usage breakdown visibility per customer, Level 2 Support and NFR license keys for internal use. Silver-level partners receive access to marketing development resources, a dedicated partner manager, and a locator listing. Gold partners additionally receive a dedicated Technical Account Manager and potential entry to the Partner Advisory Board and Reference Program.
This new partnership structure is designed to provide allied MSPs with a competitive advantage through access to the vendor’s technology plus a variety of other benefits on the marketing and business development side.
8×8 Rolls Out New Elev8 Partner Program
8×8, Inc., a San Jose-based cloud provider of voice, video, chat and contact center solutions, has announced the launch of its Elev8 Partner Program.
The new program offers tiered levels of dedicated funds for lead generation and conversion, as well as customizable marketing campaigns. In addition, the program includes activities such as Elev8 blitz days (8×8’s channel pipeline generation initiative), account planning, product demos and custom co-branded prospect events. The Elev8 Partner Program has three designated tiers: X Partner, X Plus Partner and Infinity Partner.
“8×8 is a Channel first company, therefore the success of our channel program is critical,” “Cloud communications and contact center have undergone massive shifts, and partner programs need to be designed in a way that reflects how these industries are changing,” said John DeLozier, Channel Chief at 8×8. “The Elev8 Partner Program exceeds industry standards and demonstrates to our channel partners that we’re in the trenches assisting them as they convert customers from legacy, on-premises to cloud solutions.”
8×8 reports fourth quarter channel bookings grew 91 percent year-over-year.
The Elev8 Partner Program follows the launch of the 8×8 PartnerXchange platform, which enables channel partners to more easily manage their 8×8-related business.
All current and future contracted partners will be immediately enrolled in the tiered program, with benefits targeting both master agents and sub agents.
The renewed emphasis on marketing assistance is likely to play well with channel partners, many of whom tend to struggle with their own home-grown marketing initiatives.