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Parallels splits company to target US$100 billion Cloud service provider market

Brian Karlovsky | May 25, 2015
New business named Odin, in a nod to Norwegian chief executive, Birger Steen.

"We don't see that at all," he said.

"We see a market that today is worth $US100 billion and if you look just on the Amazon side of things that's $5.2 billion (Amazon's 2014 annual revenue figure).

"Even though they are spectacularly successful, they still only have a small piece of the market and if they continue to grow at 50 per cent there's going to be so much more for providers that are local and targeted and focused, to do business and we have found a number of those in Australia," he said.

He said there had been an early move in Australia, both entrepreneurs and service providers, towards the Cloud paradigm.

"We are very optimistic on behalf of our partners, which what we like to call our customers," he said.

"We think there's going to be a market that's big and growing, there's going to be more than a trillion dollars worldwide from those moving from the old paradigm to the new in the next 10 years and we want to help the service provider focus on being a service provider, so they don't have to spend investment developing software. That's our mission in life."

Steen said there were four pillars Cloud service providers needed to follow to gain success in the shifting market.

"The first aspect is as a service provider you are typically local, sometimes vertical and you need to take that knowledge and turn it into targeted offers," he said.

"You need to not put up an app store and hope people will show up, they don't!

"You need to not sell something that everybody else sells.

"You need to not give an unintegrated bundle of services - you need to target a well integrated set of services at customers who you have the skills and capabilities to serve well.

Secondly, he said to be a value added intermediary you needed to be someone who added value in the value chain, as opposed to just reselling somebody elses' stuff.

"That value will be different for different players," he said.

"For some it will be support for some it will be faster delivery. There are a number of different models out there that work very well today."

The third pillar was alsways to serve your customers in context.

"That's the new expectation that very few deliver today," he said. "When you're customer is running out of space, that's when they buy more disk, when the customer has a security problem that's when they want to buy antivirus... that ability to allow your customer to self serve and sometimes assist them."

The last pillar is around partnership.

"Don't try and partner with someone who doesn't want to partner with you," he said. "The entire IP and telecom market is worth four trillion and there's a few hundred billion of that which is endpoints, and everything else gets impacted by the Cloud shift.

 

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