Transition to cloud-based data systems is the business makeover that’s sweeping the marketplace and inspiring investors to pull out their checkbooks. With some amalgamation of cloud and legacy networks existing as an IT baseline for modern organizations, the new gold standard of dedicated cloud-computing keeps affiliated service companies in high demand. However, providers and vendors alike must convince lenders to bankroll the prospective proliferation of innovative cloud transformation technologies by demonstrating the streamlined business model made possible with them.
Though seemingly inevitable, cloud adoption has been sped up exponentially by COVID-19 remote work mandates. This interminable period motivated companies to take stock of any inefficiencies in IT systems, many of which were spread thin by the sudden jump to a digital workplace. In what is currently a sort of feedback loop, spikes in fundraising give providers the resources to put their money where their mouth is for outsourced business transformation while staying at the forefront of their own ever-evolving industry.
Preeminent third-party vendors, examples being ConnectWise and ScienceLogic, may sometimes prove to be inflexible in comparison to smaller, specialized MSP platforms. The SolarWinds hack, which compromised the data of over 100 companies, hasn’t done any favors to the draw of these bigger players. Integrated solutions platform provider Atera scored a $25 million investment through K1 Investment Management that’ll in turn increase desirability; the funds will afford wider variance in the offerings of data analytics. Platforms with remote management and monitoring (RMM) and professional services automation (PSA), such as Atera, are essential to the agency of MSPs and boost market value.
Oracle has also stepped into the fray with its public cloud effort Oracle Cloud Infrastructure, throwing a hat into the ring with Microsoft and Amazon. The cloud-dedicated editions of its Autonomous Database and enterprise applications, specifically Fusion ERP, have been successful steps toward modernization. Credit Suisse Analyst Brad Zelnick said, “The applications business appears poised for acceleration and Autonomous Database is likely to drive meaningful upside in fiscal 2022 and beyond... continued capacity constraints reflect strong underlying [Oracle Cloud] demand and the need for incremental capital investment.” Still saddled with on-premises networking, Oracle’s cloud efforts have to eclipse the handicap of legacy IT systems to justify their existence. Though Oracle will ultimately benefit from its unique rollout of cloud adoption, smaller-scale providers are the more encouraging investment, as a cloud-native model comes with significantly less baggage.
A steady rise in interest rates for the U.S. and Europe has made cloud service capital investment a more momentous decision. This market is notorious for running through hefty lines of financing quickly, as cloud technology research, IoT deployment, and overall business expansion can run up quite a bill. Regardless, IT industry leaders have a clear conscience when hedging bets on the bright future of cloud accessibility services.