Franchise Cloud Businesses: A Disruptive Means of Driving Opportunities for Managed Cloud Services

February 2020 •
12 pages •
Report ID: 5861609 •
Format: PDF

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This IDC Market Perspective discusses franchise cloud businesses as means of driving cloud services opportunities.As enterprises expand their use of cloud services, they are showing increased interest in using new business models from which to procure these capabilities. Based on a U.S. study of enterprises looking at their managed services requirements to support endpoint technologies (e.g., PCs, notebooks/laptops, smartphones, smart tablets, and thin clients), IDC uncovered significant interest by firms in utilizing franchise business models as a means of migrating to and utilizing cloud capabilities."As firms move to the cloud and consume services from cloud service providers (IaaS, PaaS, SaaS), they are showing interest in not only using cloud capabilities to create new business models of their own but also potentially consuming cloud services through new business models such as franchises, for which U.S. enterprises are showing considerable interest," says David Tapper, VP, Outsourcing and Managed Cloud Services at IDC. "IDC believes that service providers competing in cloud services markets need to utilize franchise business models as another means of driving business but will require that service providers treat a franchise model as a 'retail' business, develop a road map of customer adoption starting with a focused area, consider critical factors in establishing initial sites, test market the concept of franchise businesses, and engage an ecosystem of technology partners to participate."

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