In an increasingly competitive cloud environment, staying ahead requires the use of advanced technologies and architectures that ensure operational efficiency and business growth. A recent IDC study highlights significant benefits for VMware Cloud Service Providers (VCSPs) offering Kubernetes as a Service (KaaS) on VMware Cloud Foundation (VCF). Here’s a look at the compelling statistics from this study and why they matter to cloud providers.
Key statistics revealed by IDC
1. Revenue growth for providers offering KaaS on VCF
- 4.4% Higher sales growth: VCSPs offering KaaS will see nearly three-quarters more revenue growth over five years compared to those that don’t.
- 9.5% share of the organization’s revenues: KaaS contributes almost 10% to the total revenue of the organization.
- 31.9% compounded sales growth over five years: Impressive compound annual growth rate for KaaS providers.
2. Increasing operational efficiency and customer engagement
- 38% more efficient infrastructure and monitoring teams: Increased efficiency of internal operations leads to lower costs and better service delivery.
- 10% increase in the use of self-service features by customers: Empowering customers with self-service capabilities improves their experience and reduces support overhead.
3. Improving service delivery and customer retention
- 15% greater share of services provided through containerization: The increased adoption of container services is in line with modern application development trends.
- 40% increase in customer offer size: Higher business volumes indicate greater customer investment in services offered through an improved architecture capable of handling significant user loads.
Why these statistics matter to VMware cloud service providers
- Improved competitive gameplay – The ability to offer Kubernetes as a service puts VCSP in direct competition with hyperscale Platform as a Service (PaaS) offerings, allowing you to retain clients who might otherwise migrate from your platform due to limited service options.
- Increased revenue streams – With significant revenue growth metrics, including 74.4% growth over five years, integrating KaaS into your service portfolios is not only beneficial, but essential to future business models against market volatility.
- Operational excellence – Achieving 38% more efficient internal infrastructure and monitoring teams means your resources can be reallocated to innovation rather than maintenance, leading to further improvements in service quality and customer satisfaction.
- Customer-focused innovation – A 10% increase in the use of self-service features indicates that customers value autonomy and ease of use, which are critical factors for retention and satisfaction in today’s cloud environments.
- Scalability and performance – The ability to manage significantly higher user loads without compromising performance allows you to scale efficiently while maintaining high quality service delivery standards – directly impacting customer loyalty and lifetime value.
Feedback from partners
Real-world examples underscore these findings:
One partner saw their business double when they went from managing 280,000 sessions per second to processing 700,000 sessions per second after adopting VMware Cloud Director Container Service Extension (CSE – the underlying technology with Cloud Director to leverage Tanzu KaaS).
Another partner retained 20% of clients who would migrate to hyperscalers by offering container services alongside virtual machines on a single platform, a clear testament to the stickiness of diverse yet integrated offerings.
An IDC study shows that adopting Kubernetes-as-a-Service on VMware Cloud Foundation is not just an operational upgrade, but a strategic imperative for cloud providers focused on sustainable growth, competitive differentiation and superior customer engagement.
Next steps
Learn more about these real numbers and experiences from your industry peers by reading the white paper
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