Growing complexity leads enterprises to look for new service providers

A new study from CloudBolt Software reveals that 80 percent of enterprises are so frustrated with their existing cloud-oriented provider they are actively looking for a replacement within the next twelve months.

At the core of this dissatisfaction with CSPs and MSPs is the growing complexity of multi-cloud environments, and a widening skills gap among both enterprises and service providers.

"With multi-cloud architectures growing more complex and expensive, enterprises lack the in-house personnel and expertise to tame the chaos and runaway costs that arise, so they turn to CSPs and MSPs," says Jeff Kukowsi, CEO of CloudBolt. "However, service providers are experiencing a skills gap of their own. The personnel issues caused by the pandemic, along with the resulting Great Resignation and decrease in employee loyalty, have created severe challenges in hiring and retaining employees with the skills that are so desperately needed today. This skills gap among providers prevents them from becoming the deep, strategic partner their customers need."

Causes of dissatisfaction include an inability to properly optimize cloud spend (60 percent); limited or non-existent multi-cloud options (58 percent); inability to better enable cloud automation (50 percent); inability to provide visibility across cloud spend (41 percent); and an inability to automatically correct cloud spend inefficiencies (24 percent).

Despite this there's still confidence that MSPs and CSPs can be part of the solution. 85 percent believe they can more easily pull together all aspects of digital transformation than the enterprise alone, while 91 percent believe their MSPs/CSPs increase agility so the enterprise can better capitalize on cloud-related initiatives.

In addition 82 percent believe their MSPs/CSPs reduce time to market for their customers and 81 percent believe that they save them money.

Interestingly almost all (97 percent) say they would be willing to pay a premium to a service provider that could deliver on the current shortcomings they identified with their current vendor. 79 percent say they would happily pay five percent or more.

The full report is available on the CloudBolt site.

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