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Market Insight


Cloud Computing solutions, including Software, Infrastructure, Platform, Unified Communications, Mobile, and Content as a Service are well-established and growing. The evolution of these markets will be driven by the complex interaction of all participants, beginning with end customers.

Edge Strategies has conducted over 80,000 interviews in behalf of our clients in both mature and emerging markets with decision-makers across the full cloud ecosystem- including Vendors, Service Provider and End Customer organizations.

Typical projects include:

  • Identifying target market segments
  • Designing Service Portfolios
  • Designing Application and Services Features
  • Developing Value Proposition and Messaging for each customer segment
  • Analyzing competitive alternatives and determining best practices
  • Designing Activation Programs
  • Building process to reduce churn, build loyalty and measure Customer Lifetime Value
  • Improving the User Experience

We provide current, actionable insight into business decision processes across market segments, from SMBs to Large Enterprises. Our work leverages a deep understanding of the business models of key Cloud Ecosystem participants including:

  • Cloud Service Providers ( CSPs)
  • Web Hosting Providers
  • Communication Service Providers
  • ISVs and Automation Providers
  • MSPs and IT Channels

Our experience allows us to get up to speed quickly on new projects. We are experts in designing and conducting quantitative and qualitative research. Based on our focused findings, we work with our clients to make the decisions necessary to gain early success in a variety of markets, including SaaS, IaaS, PaaS, UCaaS, and mobile/device services.    

 

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News

  • Why hands-on learning is critical for IT

    Street smarts vs book smarts Recently one of our expert contributors opined that the act of writing helps to make an IT leader stronger, arguing that writing is a leadership superpower. According to CIO.com writing conquers cognitive limits, clarifies complex thoughts and stress-tests ideas for a decisive strategic advantage.   This piqued the interest of readers of CIO, who were keen to ask Smart Answers about other ways in which we can learn and do better. One question in particular resonated around the value of hands-on learning.   It’s been a theme of recent years that learning on the job can be more valuable than academic learning, and Smart Answers suggests that hands-on learning is crucial for IT skills because it allows individuals to demonstrate capabilities, retain knowledge, learn continuously, and build competency.  Find out: Why is hands-on learning crucial for IT skills?   LLMs training LLMs? A big hit this week was Matthew Tyson’s fascinating deep dive into the rise and fall of Stack Overflow.  At one point the internet’s senior engineer, the backstop where developers turned with problems that stymied them, the article argues that Stack Overflow has declined not because AI is able to write code but because it lost the element of human community that drove its initial growth.   We pride ourselves that Smart Answers is useful only because it is trained on an LLM only of the content we create, every piece of which features insights from real humans working in IT. Readers of the Stack Overflow article asked our AI chatbot an important question: where do LLMs go to get such insights if everyone acquires information from LLMs? Google Search is build on referrals to original content from publishers, but if no-one is being referred and publishers stop publishing there will be no content to train LLMs.   Smart Answers agrees that for LLMs to thrive they need to capture information from trusted sources. It cites community platforms, open datasets, and published content. To mitigate the risks of AI feeding on AI, Smart Answers says future LLMs may need to focus on high-quality, structured data, such as textbook-quality data. And yes, we appreciate the irony of our readers asking our own LLM about this issue.  Find out: Where will future LLMs get training data?   SAP stick or twist This week we reported that nearly half of SAP ECC customers may stick with legacy ERP beyond 2027. We said that as the end of support for ECC nears, many customers continue to avoid moving to S/4HANA because of the cost and complexity of migration. And, really, what’s the harm?  Good point. What is the harm?   Readers of CIO.com asked Smart Answers that very question. And continuing to use SAP ECC after 2027 poses several risks, according to our LLM, built on years of reporting. Running legacy ERP systems can expose customers to security and operational risks. Lack of support for third-party products may introduce security vulnerabilities, and maintenance fees may be incurred.  Find out: What are the risks of staying on SAP ECC after 2027?  About Smart Answers  Smart Answers is an AI-based chatbot tool designed to help you discover content, answer questions, and go deep on the topics that matter to you. Each week we send you the three most popular questions asked by our readers, and the answers Smart Answers provides.  

  • Tech layoffs surge even as US unemployment remains stable

    Although the US unemployment rate held steady at 4.2% in May with 139,000 jobs added to the US workforce, nearly 100,000 layoffs were also announced — up 47% from last year, according to new data from the US Bureau of Labor Statistics and others. Tech and federal cuts led the way in layoffs, driven by economic pressure, programmatic firings and AI-driven shifts in workforce needs, according to outplacement firm Challenger, Gray & Christmas. Technology remains a top sector for cuts amid ongoing disruptions, according to the firm’s data. In May, tech companies announced 10,598 layoffs, bringing the 2025 total to 74,716; that’s up 35% from 55,207 at the same time last year. “Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement. Uneasiness continues to weigh on tech hiring, according to CompTIA, a provider of IT training and certification products. The unemployment rate for tech jobs in May was 3.4%, roughly in line with April’s 3.5%, CompTIA data showed. The tech unemployment rate continues to sit below the national rate. CompTIA Tech sector companies added a modest 1,571 net new employees in May, analysis of the BLS jobs report by CompTIA showed. Job growth in cloud infrastructure and tech services was offset by reductions in the telecommunications sector. Tech employment across the broader economy declined by an estimated 131,000 positions. “With prior month employment gains, tech occupation employment remains in the positive for the year,” CompTIA said. “It is undoubtedly a challenging time for employers and job seekers facing uncertainty on multiple fronts,” said Tim Herbert, CompTIA’s chief research officer. “At the same time, it requires taking a measured approach given the data continues to hold up reasonably well.” One bright spot for tech hires in May was the finance and insurance industry, which collectively saw a 21% increase in new tech job postings; new tech job openings also rose by 16% in the retail sector, according to CompTIA. Even so, tech layoffs have continued as AI adoption soars and economic pressures drive a major shift toward new roles and skills in the workforce. “AI isn’t replacing jobs,” said Kye Mitchell, president of tech workforce staffing firm Experis US. “It’s fundamentally redefining how work gets done. We’re seeing AI augment skillsets and make professionals more capable, faster, and able to focus on higher-value work.” Technology only displaces jobs when about 80% of tasks can be automated — and AI isn’t close to doing that, said Mitchell. Right now, AI is enhancing skills, boosting productivity, and freeing up time for higher-value work. Hiring for AI positions and those requiring AI skills continues to grow rapidly, according to a CompTIA analysis of data from Lightcast and Stanford University study. CompTIA found that employer job postings related to AI are up 117% year-to-date year-over-year. Challenger, Gray & Christmas Skills-based hiring remains core to many employers’ recruiting strategies. About half of all tech job postings did not specify a need for a four-year academic degree, seeking instead a combination of work experience, training and industry-recognized certification, according to CompTIA’s and other data. Even so, employers are hesitant to hire. “Economic uncertainty is absolutely creating a cautious hiring environment, but it’s more complex than tariffs alone,” Mitchell said. “Our data shows employers adopting a ‘wait and watch’ stance as they monitor economic signals, with job openings down 11% year-over-year.” Still, the tech job market is adjusting as AI adoption grows. AI skill mentions in job postings fell 10% in May but are still up 10% for the year, showing steady demand, Mitchell said. The tech industry had been nearly bullet-proof from mass layoffs prior to 2022. After a hiring surge between 2020 and 2022 to meet digitization efforts as more people worked from home, the market shifted and began slashing jobs to readjust to the new reality. Tech companies such Google, Amazon, Meta (Facebook) and others laid off tens of thousands of workers  as an adjustment to over-hiring during the COVID-19 pandemic. In 2023 alone, 1,186 tech companies laid off about 262,682 staff, compared to 164,969 layoffs in 2022. In January 2024, job cuts leaped 136% over December and hit a 10-month high, according to Challenger, Gray & Christmas. While the labor market remained steady, there are signs that hiring across the board is softening. Open job postings fell 7% this year and new postings dropped 16% in the past month — the first full contraction of 2025. Year-to-date, new postings are flat compared to last year, according to Ger Doyle, ManpowerGroup’s regional president for North America. Doyle, however, was optimistic. “This is a chill, not a freeze,” he said. “Workers and employers are holding steady, awaiting clarity.” For example, he said, project management roles are up 483% year-over-year, and as the broader outlook improves, a rebound could follow, he added.  Demand for data roles is surging as companies shift from AI experiments to execution. Database architect postings are up 2,140% year-over-year, with data scientist postings up 280% — clear signs of companies building the backbone for an AI-driven future, Experis’s data showed. “This shift is also reshaping how talent enters the industry. Entry-level opportunities are becoming more limited, making it harder for recent graduates to gain a foothold,” Mitchell said. “For those looking to break in, deep analytical and technical skills are no longer optional.”

  • Apple details which governments make the most data requests

    To get some sense of the speed with which we’re hurtling into dystopia, it’s always worth taking a look at Apple’s latest Transparency Report; it shows the extent to which governments are requesting information about people, the ways in which they seek it, and the scale at which the requests are made. The report itself is a little inexact — this particular edition has been updated with information covering January-June 2024, meaning we have no insight into data requests across the last 12 months.  There are also limits to what Apple can say. The company isn’t always permitted to be completely transparent in the information it shares about these requests, and in some territories it might no longer be permitted to decline some data requests. The report has some concerning insights about the UK, where the government has decided people shouldn’t even be made aware of the extent to which it uses digital devices for state surveillance.  Which nation makes the most requests per head? Ignorance is bliss, I suppose — but US politicians are not at all happy with the UK approach. That’s not surprising when you consider that on first glance, at least, the UK as a nation makes far more requests per head of population than most other countries. This indicates the extent to which the nation, already insisting on deeply unsafe backdoors into personal data, is using technology to monitor people. Returning to the Transparency Report, Apple shares information concerning several categories of data request: Device Requests Financial Identifiers Account Account Preservation Account Restriction/Deletion Push Token Emergency US National Security US Private Party Digital Content Provider Requests App Removal The US continues to lead the world in the sheer number of such requests made.  No other nation, not even China, makes anything like as many. You can see for yourself, but China (population 1.4 billion) made 1,212 device requests, 465 financial identifier requests and 398 account requests (and one emergency request) in the reporting period, while the US (with 340 million residents) made 12,043 device requests, 1,341 financial identifier requests, 12,812 account, and 793 emergency requests. The UK (population 68 million) made 2,925 device requests, 138 financial identifier requests, 2,550 account, and 726 emergency requests. By those numbers, the UK makes more requests per head.  Fun with numbers Except, that isn’t quite true; while China made just 1,212 device requests, it specified 365,980 devices within those requests — and Apple complied with 96% of the requests. In the UK, those 2,925 device requests specified 8,211 devices, and Apple complied 78% of the time. In the US, 42,747 devices were specified and 86% of those requests were met.  Fun with numbers aside, it’s pretty clear that all three nations are united by their zeal to access this kind of information, more so than anyone else, except possibly Brazil. (Brazil, with a population of 211 million, made 8,776 device requests and specified 42,276 devices in those requests, to which Apple complied 78% of the time.) Looking through the data, on the basis of the number of requests made per unit of population, the UK has the dubious distinction of being the most invasive government in the world. Though it is important to note that Apple exists under different legislation in each nation, which means it may not be able to report some of the information it has — we just don’t know whether that is the case. Top of the spooks There are other highlights. The data shows a surge in US (and global) requests for Push Token data. This is data that can identify which device receives a specific notification from an app and can sometimes help access message content. The report reveals that requests for this kind of data have surged, but indicates Apple is approving fewer of them. Another trend seems to be an increase in requests for financial identifiers, which generally seek information concerning fraudulent transactions. Taiwan is the world champion in making such requests and Apple complies with 97% of those. The US, Japan, and Germany are also high in the list.  Account requests are also increasing fast and in this category the UK is up there with Germany, Japan, China, and Brazil, with the US accounting for over half of all such requests worldwide. Data requests made in the cause of US national security have also increased.  Transparency, where possible Finally, while all this information is interesting, it really has to be read with a pinch of salt, since in at least some of these cases the information Apple is permitted to report may, or may not, enable it to be completely transparent with the information it shares.  All the same, the implication is that data privacy continues to be something that must be fought for. “This is surveillance,” as Apple CEO Tim Cook told European privacy commissioners in 2018. Seven years later, of course, Europe is insisting Apple make your data more easily available to third-party firms. George Orwell’s book 1984 was, it seems, an instruction manual after all. You can follow me on social media! Join me on BlueSky,  LinkedIn, and Mastodon.

  • Atlassian moves toward bundling on collaboration tools

    Atlassian this week said it is starting to focus more on pushing out bundles of its collaboration tools, including Confluence, JIRA, and Loom, in an apparent move away from selling those apps as standalone products. The company’s bundling strategy will revolve around the recently announced Teamwork Collection, which was unveiled in April at its Team ’25 conference. “When we look at Teamwork Collection, that is our strategy moving forward,” Brian Duffy, the newly appointed chief revenue officer at Atlassian, said during an interview  at the William Blair 45th Annual Growth Stock Conference. “We will lead with Teamwork Collection and collections in general — that will be our de facto approach for our high-touch customers or our enterprise customers.” The Teamwork Collection includes JIRA, which helps teams plan and track work; the Confluence platform for information exchange; and Loom for video communications. In April, Atlassian bundled the products into Teamwork Collection as AI breaks down barriers to enable better collaboration across the platform. The company offers customers its Rovo generative AI tool for free. “That means if customers currently have JIRA, they’re also moving forward going to have Confluence, and then there will be the opportunity for them to have Loom,” Duffy said. Atlassian is making a larger push across the board in how it ships products. The company is also introducing other software collections that target different business and management processes. For example, the “Strategy” collection helps leadership teams analyze and execute strategies and manage talent and assignments. The company has a strong footprint among IT buyers, especially in the software development productivity space, with 330,000 customers; it’s used by some 85% of Fortune 500 companies. Atlassian sees bundling as a way to broaden its reach among existing customers. The current IT customer base can provide a springboard to reach new buyers that might include business leaders,such as human resources officers, chief strategy officers, and CFOs directly, Duffy said. “It’s not going to be particularly easy. It will require hiring some new sellers to be able to have those conversations,” Duffy said.

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