5 ways Infrastructure as a Service providers can differentiate themselves in a crowded market

Hannah Mellow
Published in
2 min readAug 20, 2021


“The worldwide Infrastructure as a Service (IaaS) market grew 40.7% in 2020 to total $64.3 billion, up from $45.7 billion in 2019, according to Gartner, Inc. In 2020, the top five IaaS providers accounted for 80% of the market, and nearly 90% of all IaaS providers exhibited growth.”* The vast majority of IaaS providers are competing for a little under 20% of the market share. When faced with intense competition, you need to differentiate your offering to grow revenue.

Here are 5 ways you can do this:

  1. Efficiency
    Improving the efficiency of your infrastructure will allow you to offer more with less. An efficient hyperconverged infrastructure (HCI) stack can reduce the size of your memory and CPU footprint requirements. This means that you can, for example, deploy 30% more virtual machines on the same hardware.
  2. Performance
    Offer your customers 10x the performance of AWS without adding costs. A high-performing HCI can provide super fast networking and storage, so you can get bare metal performance from your NVMe flash storage.
  3. Customer Service
    Having a simple way to install and manage all of the infrastructure services for your customers means that you can provide a superior level of service — without the need for a team of engineers to configure and manage all of your products. Remote management is key to ensuring issues are identified and dealt with quickly.
  4. Valued-added services
    Why not offer your customers additional capabilities to increase the stickiness of your service? Consider adding single-click deployment of applications, infrastructure monitoring and backup services to your IaaS offer, without incurring additional costs.
  5. Price
    The IaaS market is price sensitive and margins are tight. The right HCI partner can allow you to offer your customers a better hosting service for less. So you can reduce your prices and still grow your bottom line.

IaaS provider, InfraSpace were able to cut the cost of supporting remote developers by 60% with Sunlight. InfraSpace’s CEO, Uma Umathurappan said, “With Sunlight we can deliver high performance desktops at a level of performance that Citrix isn’t capable of. Developers demand high performance desktops and with Sunlight — they get that performance.”

Sunlight’s NexVisor HCI and Infrastructure Manager (SIM) can help IaaS providers to:

  • Efficiently deliver more Virtual Machines (VMs) on less hardware infrastructure
  • Offer high-performance services (high IOPS) at a fraction of the cost of AWS PIOPS
  • Deploy complex applications with a single click from the Sunlight Marketplace
  • Simplify infrastructure management with fully integrated storage and networking

Want to differentiate your IaaS offering? Find out more.

* Gartner® Press Release (2021) Gartner Says Worldwide IaaS Public Cloud Services Market Grew 40.7% in 2020, June 2021: https://www.gartner.com/en/newsroom/press-releases/2021-06-28-gartner-says-worldwide-iaas-public-cloud-services-market-grew-40-7-percent-in-2020



Hannah Mellow