INDUSTRY NEWS Newsletter August

26th August 2020, von in Industry News, Uncategorised

HPE strikes potentially massive cloud deal with UK government

The UK government has struck a potentially massive deal with HPE for cloud computing. The two parties have issued a Memorandum of Understanding (MoU) that will enable public sector organisations to buy HPE hybrid cloud services on a pay-per-use basis at special rates. These may well be acquired through third parties i.e. HPE resellers.

HPE presented the deal as one that will help the public sector to shift more workloads to the cloud.

The company’s hybrid GreenLake proposition – which provides a mix of on-premise infrastructure with extra capacity that can be used on a pay-per-use basis and IaaS – will be the focal point for most of the business. Aruba enterprise networking and security products, and HPE’s storage and servers are also covered by the deal though.

This is the fourth MoU set up between the Crown Commercial Service (CCS) and cloud service providers under the One Government Cloud approach. There are already deals in place with Google Cloud, UKCloud, and IBM.

Public cloud heading towards $300 billion worldwide this year

The sheer size of the IT market is mind-boggling at times – and as more customers move more workloads to the cloud, the figures for public cloud services growth seem more astounding every time.

The latest pronouncement from IDC puts the total public cloud services market (including IaaS, PaaS, and SaaS) at $233.4 billion for 2019 – a rise of 26% year-on-year. If that rate of growth continues, the market in 2020 will be approaching $300 billion globally this year – and it may well have accelerated even more due to the Coronavirus pandemic. IDC said that where enterprises had talked about cloud journeys taking up to ten years, they are now looking to complete the shift in less than half that time.

The firm said in its Worldwide Semiannual Public Cloud Services Tracker that the combined revenue of the top five public cloud service providers (AWS, Microsoft,, Google, and Oracle) took more than one-third of the worldwide total – and at 35%, their growth is higher than the rest, so it looks like they will continue to dominate.

The public cloud services market has more than doubled since 2016. During this same period, the combined spending on IaaS and PaaS has nearly tripled. This highlights the increasing reliance on cloud infrastructure and platforms for application deployment for enterprise IT internal applications as well as SaaS and digital application delivery. IDC expects spending on IaaS and PaaS to continue growing at a higher rate than the overall cloud market for several years.

Study identifies key trends for MSPs

A global study of MSPs suggests that most businesses have been able to carry on pretty much as normal during the pandemic, have adapted well to clients switching to home working, and have gone out of their way to meet the needs of their customers.

The report, COVID-19: Impact and Response, wascompiled by SolarWinds and aimed to measure the impact of the Coronavirus pandemic on MSPs and how it had affected future growth prospects. The firm collected views from 500 MSPs across Europe, North America, Australia, and New Zealand

Key findings include:

  • 59% of MSPs have applied for government financial relief programs, with 74% receiving the help they needed
  • Over 80% of respondents have continued operating at their pre-pandemic staffing levels
  • The majority of MSPs declared they have adapted their security services for work-from-home clients, with 59% of managed-services-centric businesses offering more security bundles than any other business model
  •  Two-thirds (66%) reported ‘going the extra mile’ to support their customers and adapting their security services for WFH clients.
  • 65% of MSPs do not expect to make any pricing changes
  • 24% have offered delayed payments
  • 23% have offered temporary discounts
  • 19% have reduced their services to fit shrinking customer budgets
  • 13% intend to increase their prices following the pandemic

In terms of challenges, MSPs believe the biggest barriers they will face over the next year are:

  • Securing new customers
  • Social distancing requirements in the office and at customer sites
  • Lower IT budgets and spending due to recession
  • Adapting to having staff and clients work-from-home

The report suggests that over the next 12 months:

  • 51% expect to increase their security services
  • 47% plan to increase cloud services
  • 42% predict growth will come from additional project work
  • 39% expect an increase in managed services contracts
  • 40% of ‘large’ MSPs anticipate they will engage in a merger or acquisition
  • Nearly half estimate that more than 20% of their clients will implement work-from-home policies post-pandemic

 Cybersecurity funding up almost 1000% this year 

Growing concern over cyber threats since the lockdown came could be the key driver behind a massive 940% year-on-year increase in funding for cybersecurity start-ups in the UK, according to a report from recruitment agency Robert Walters and data provider VacancySoft.

While there has been an overall 44% increase in the number of cybersecurity firms being set-up during the last two years, there has been a real acceleration in 2020 with funding up 940% to £496 million in the first six months of the year. This is 95% of the amount invested over the whole of 2019. According to a report by cybersecurity firm Malwarebytes, WFH has already led to more breaches. It claims that 20% of businesses have been hit in some way due to the actions of a remote worker since the start of the lockdown. Apparently, 61% of businesses have not been compelling their staff to use antivirus solutions on personal devices they might use for work at home. Phishing emails are cited by the firm as one of the major problems, with attacks often using a Coronavirus-related theme.

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