So the world of Cloud Computing continues to evolve on a almost daily basis, but what specific event has forced pen to paper… or virtual pen to paper at least.  Well the exit of RackSpace from the IaaS market to me was a major event in the evolution of the cloud and the commoditization of what I call the first wave of cloud, namely Simple IT-aaS.

If one of the hiperscale darlings of the IaaS space can no longer make sufficient margin from this sector then what hope have tier 2 and 3 player got for local markets or specific industry verticals.  In the scribes humble opinion MSP/CSP’s looking to survive and yes I do mean survive beyond the next 3-years then they need to find a niche and develop their tailored offering quickly.

No longer can an MSP throw some x86 based VMWare guests up on the web and hope to build a sustainable business, the MSP/CSP needs to be offering a specific software solution to a vertical, a unique slant on how to offer quality of service, availability or security.  As this evolution to what I call the 2nd wave of cloud workloads or Mission Critical IT-aaS becomes the new battle ground for MSP’s then the focus will be on innovation and daring to be different.  Following the crowd and hoping to be lucky will lead to some of the 35,000 MSP’s currently operating globally going to the wall.  This is to be expected as any marketplace matures new entrants get consolidated out and the successful survive, call it the Darwinian survival of the fittest.

So to all those MSP’s out there not wanting to become the next Dodo, I suggest you take a long hard look at the building blocks of your business, namely your infrastructure and ask you yourself one hard question: Have we dared to be different? Or have we followed the accepted practice and built a derivation of what everyone else in the industry is offering.

You may not like the answer, but better to know now rather than let the market find you out…