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Workspace as a service market poised for growth

The demand for workspace as a service is heating up, according to Transparency Market Research; more IT channel news from the week.

A study from Transparency Market Research (TMR) Pvt. Ltd. has revealed an increase in the adoption of workspace as a service technology, a category that includes desktop as a service (DaaS) and desktop applications as service.

The research, which was highlighted this week in a press release by DaaS provider IndependenceIT, stated that the global market for workspace as a service technology was valued in 2014 at $7.47 billion and is expected to grow at a CAGR of 12.1% from 2015 to 2022. Small and medium-sized businesses (SMBs) have largely contributed to the market growth, as many SMBs have looked to move from on-premises systems and traditional desktop virtualization products to cloud-based offerings, according to TMR.

JD Helms, president of hosted workspaces vendor nGenx, said TMR's findings aligned with the growth he has observed in the workspace as a service market over the past year or so.

"Our sales for the last three months exceeded our sales of the first six months of this calendar year," he said. "We're seeing dramatic growth in this space."

He added that nGenx's biggest challenge right now is managing its backlog of leads and hiring more qualified sales people.

In Helm's opinion, the growing demand for workspace as a service relates to the consumer mindset at the moment: Many business owners are focused on advancing their strategic business objectives, not on amassing hardware.

"Businesses are looking for a more efficient way to use capital, which is not necessarily involving the buying of lots of new hardware to implement a strategic objective," Helms said. "Workspace as a service allows businesses to get that agility and deploy those things and actually spend that money on business objectives, as opposed to having to set aside part of their IT budget just to buy hardware."

JD Helms, president, nGenxJD Helms

NGenx isn't only seeing demand for its workspace as a service offerings from the SMB segment, he said. The company is now selling to enterprises, as well.

"The enterprises that went through that round of virtualization and trying to do desktop virtualization the first time on their own are now reevaluating where they're at," he said. They're turning to hosted offerings as a result.

For channel partners that haven't yet entered the workspace as a service market, Helms said the time to do so is now. "This space has been around for a while, but we're finally seeing that adoption rate. The folks that get in it and start to push [workspace as a service products] will keep relationships with their customers and generate very nice business for themselves. The ones that don't are going to lose the customers.

"If a provider is not having the workspace as a service conversation with their customer, they can be guaranteed that somebody else is," he said.

IT channel news roundup for the week of Oct. 5

Here's a look at this week's channel highlights:

  • Accenture and Amazon Web Services (AWS) launched a business group that combines personnel from both companies and targets enterprise customers. The Accenture AWS Business Group will offer integrated consulting and technology offerings that the companies said will help clients leverage the "as a service" operating model. The companies plan to invest in offerings including application migration and development, cloud-based enterprise applications, and analytics and big data systems. Accenture's move follows the integrator's announcement last month of its plan to acquire Cloud Sherpas, a consulting firm that provides services around the Google, Salesforce and ServiceNow cloud platforms.
  • Distributor Avnet Inc. signed an agreement with Alert Logic, a managed cloud security and compliance vendor, allowing Avnet to offer Alert Logic's security services to its North American channel. The services will be provided through Avnet Cloud Solutions and in conjunction with AWS.
  • IT industry trade association CompTIA updated the CompTIA Server+ certification exam for IT professionals. CompTIA said the latest Server+ exam emphasizes security, storage, virtualization and related skills.

Additional reporting by John Moore.

Next Steps

Also this week:

HP revealed Partner First and Partner Ready, the two partner programs it will launch following the company split next month;

CompTIA highlighted an uptick in marketing investments among channel partners in its latest State of the Channel study;

Microsoft introduced the Surface Book, opening up opportunities in the "detachables" product class;

Symantec unveiled the long-awaited Secure One partner program;

And OpenText introduced new partner incentives with the debut of its global channel program.

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