Expanding The Public Cloud Opportunity: How To Grow Your XaaS Portfolio

The Public Cloud is a segment of the IT industry that we keep under close surveillance. Within our three research themes – Elastic Enterprise, Connected Worker and Partner Ecosystems – the Public Cloud is a major area of focus because it accelerates enterprise elasticity and worker connectivity and disrupts traditional partner ecosystems. When we look at the potential growth trajectory of SaaS, PaaS, and IaaS suppliers, one of the tools we use is our XaaS Portfolio model. This model describes the portfolio growth paths available to XaaS vendors. Through building out these paths, XaaS vendors can increase their presence and play more effectively across user segments and cloud ecosystems. We distinguish three growth trajectories in our model:

  • Core expansion: relating to growth within product domains and features
  • Horizontal and vertical expansion:  relating to growth through packaging and segmentation
  • Ecosystem expansion: relating to growth through the partner ecosystem

These three growth trajectories should mesh and synchronise for maximum effect. See the slide below for a graphical representation of this model.

Core expansion

The core expansion growth trajectory is product specific and relates to growth opportunities that are core to the XaaS vendor product portfolio. The four main product portfolio segments we identify within core are domain, features & functions, API, and mobility. Here is how we define these:

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About Pim Bilderbeek