The cloud has transformed how organisations operate across the UK. Cloud adoption has moved past just storage, with many businesses implementing numerous cloud-based platforms to unlock maximum benefits. Artificial intelligence is also enabling new capabilities.

“The cloud market is undergoing a pivotal transformation, shaped by evolving market needs, and breakthroughs in artificial intelligence,” explained Jack Michalski, director of channel partnerships, TSI. “If you said cloud to a business in the past, they were likely to think of cloud storage. But it is much more than this these days.

“Hosted voice, chatbots and contact centre functionality – all are hosted in the cloud. Platforms and tools [using] AI are becoming more accessible to businesses of all sizes, meaning even the smallest of businesses can access features which once would only have been available only to enterprises in the past.”

Businesses are looking for wide-reaching benefits when selecting new technologies. Anthony Dobson, regional director, sales for Arrow’s enterprise computing solutions business in the UK and Ireland, explained, “The cloud market is rapidly evolving to meet the need for more complex, value-driven solutions.

“Customers are demanding multi-cloud flexibility, industry-specific compliance, and increasingly, AI-ready platforms. We’re seeing strong growth in areas such as cloud cost management, SaaS security, data analytics, and hybrid workloads. Channel partners are looking to deliver outcomes, not just services.”

Many decision-makers are also increasingly savvy about costs, which could spiral in years gone by. Richard Beeston, chief technology officer, Digital Space, said, “Cloud customers are focusing more on clarity, control, and security.

“Put yourself in the shoes of a CFO – they’re asking whether a cloud deployment offers a predictable and flexible spend model, and what the total cost will look like over time. This kind of cost transparency is non-negotiable, particularly in public cloud environments where spend can quickly spiral without the right controls in place.”

Delivering outcomes was also the central theme for Carl Oliver, head of product and cloud practice at Giacom. He said, “The cloud market is maturing quickly. SMBs are no longer just buying infrastructure or licences. They are looking for solutions that deliver measurable outcomes, improve productivity, and generate a return on investment. Demand is rising for AI-powered tools, especially in cybersecurity where threat detection and managed response services are gaining traction.

Oliver emphasised how MSPs are responding to those market changes. He said, “MSPs are expanding their role to become broader technology partners, offering integrated stacks that include cloud, connectivity, mobile, and voice. Many are also consolidating their supplier base to focus on fewer vendors. This approach simplifies operations, improves integration, and helps unlock better margins. With profit margins under increasing pressure, MSPs are also paying close attention to operational efficiency. Streamlining quoting, provisioning, and billing processes is becoming a key focus to protect profitability and enable scalable growth.”

Looking specifically at cloud communications, businesses have found numerous advantages. Richard James, head of commercial and strategy product management, Gamma, said, “In the UK cloud comms market, we’ve very much gone through the early adopter phase for UCaaS products, and the market is maturing in terms of what customers demand from cloud solutions now. That said, there’s still an incredible growth opportunity for partners.

“It’s worth remembering that the benefits businesses always expect from the cloud remain as relevant as ever. They’re still looking for predictable and transparent pricing with cost-effective solutions. Security and simplicity are non-negotiable, and businesses want reassurance that communications are treated with the criticality that they must be.”

Ritchie Butters, business development director, 8×8, added, “We’re seeing customers move away from siloed point solutions towards integrated platforms that can deliver measurable outcomes. Customers don’t buy products or features, they buy solutions that fix business problems. Demand is high for going a little beyond what you would expect of standard unified communications solutions.

“You’re also seeing AI-enhanced services that improve efficiency and customer experience and even though everyone is still talking about return to office full time, businesses are still exploring options for more flexibility to support hybrid work and global teams.

“Resellers and MSPs who can offer cloud solutions that integrate voice, video, chat and analytics within a single platform will resonate strongly with customers looking to simplify operations and maximise ROI.”

Resellers and MSPs are looking for solutions that can meet specific requirements. “Cloud services have moved beyond infrastructure,” explained Jonathan Walker, UK CEO, Access4. “Today, they’re about experience, agility, and relevance. For UK resellers and MSPs, the opportunity isn’t just to sell cloud; it’s to shape it.

“We’ve seen a shift in how partners approach cloud communications. It’s no longer about offering a one-size-fits-all hosted voice solution. It’s about helping customers navigate a growing landscape of unified communications, contact centre tools, and user experience enhancements. And it’s about doing that with speed, control, and confidence.”

The best fit

So, how can partners help customers decide what cloud solution is best for them? “Clearly one set of clothes doesn’t fit everyone, it all depends on individual business needs,” explained Adam Geldard-Williams, partner account manager, Evolve IP. “Understanding your customers is the first starting point, not just for today but in the mid and even long term.

“What is their vision, where do they want to get to and then highlight how certain technology can help them get there. Ask questions and be transparent based on a consultative approach, as part of a productive journey. It’s much easier to scale up and down with cloud-based solutions.

Putting people first is also a good starting place. James, from Gamma, said, “Everyone should keep in mind that cloud solutions must empower the people at the heart of good business – and everything that they do, together with the challenges that businesses face. The key thing for partners to keep in mind when delivering cloud solutions is balance and bringing it to organisations.

“Cloud comms solutions need to enable people. They need to replicate formal and informal conversations, enhancing relationships regardless of the medium or who we are talking to. These solutions must improve employee wellbeing, business processes and embed the technology for the future – all to drive business success. There is no one size fits all approach to business communications. Business culture and people make sure of that!”

That struck a chord with Beeston, from Digital Space, who also highlighted people before technology. He said, “The key is to stop thinking technology-first and instead adopt a customer-first mindset. More and more MSPs are helping customers develop tailored strategies that use a mix of technologies and environments – from public hyperscalers to hybrid and private cloud – to ensure alignment with outcomes, not just platforms.

“The best partners lead with curiosity – seeking to understand a customer’s business goals, the regulatory environment, and growth plans before proposing any kind of solution. This means putting the vendor catalogue to one side and listening, so that the final recommendation is built around the business case, not a commercial incentive.”

Ryan Martin, head of indirect at ANS, discussed how his company helps partners to assess customer needs. He said, “Helping customers choose the right cloud solution starts with understanding their unique technical requirements, commercial objectives, and long-term goals. We take a consultative approach. This allows us to assess where the customer is on their cloud journey, what outcomes they’re aiming to achieve, and the financial context they’re operating within.

“From there, we co-develop a tailored cloud strategy that blends the best of public and private cloud technologies. Customers can [then] avoid the complexity and cost of maintaining physical infrastructure, eliminating the need to manage data centres, hardware, or specialist skills in platforms like VMware or Microsoft Azure. Our goal is to simplify decision-making, reduce risk, and deliver a clear technical and commercial roadmap, supported by a board-ready report and total cost of ownership analysis.”

Overcoming challenges

Businesses can encounter various challenges when progressing cloud deployments, but MSPs are helping to address those challenges. “Cloud deployments come with challenges,” explained Walker, from Access4. “Data migration, user adoption, legacy system integration, and security concerns are all part of the journey. But these are also areas where MSPs and resellers can add real value. By wrapping managed services around their cloud offerings, they can guide customers through complexity and build long-term relationships.”

Oliver, from Giacom, added, “Businesses often worry about disruption, licensing complexity, and security risks. There is also growing uncertainty about AI. Many SMBs are unsure how to prepare their data or where to begin with AI adoption. Data sprawl and poor governance are also common issues. Without clear oversight, it becomes harder to manage access, ensure compliance, or protect sensitive information. These gaps can expose businesses to unnecessary risk and slow down progress.

“MSPs are well positioned to address these challenges. By offering structured services that cover discovery, advice, deployment, and support, they can remove much of the complexity. This helps customers move forward with confidence and ensures the right foundations are in place.” Oliver explained that, in doing so, MSPs move beyond transactional delivery and become long-term strategic advisors. 

That perspective on how MSPs can guide businesses through these challenges chimed with Martin, from ANS. He said, “Businesses in the UK often encounter a range of hurdles when advancing their cloud strategies. A key challenge is the lack of in-house expertise. Many organisations struggle to keep pace with the rapid evolution of cloud technologies, architectures, and deployment models.

“MSPs play a pivotal role in overcoming these challenges by providing expert-led migration and architecture. MSPs bring deep technical expertise to design, implement, and optimise cloud environments. MSPs also support with futureproofing and vendor management, as well as helping businesses adapt to market shifts, such as the recent VMware changes.”

Businesses are also increasingly looking for long-term value from cloud deployments. “One of the biggest challenges is turning short-term cloud projects into long-term value,” said Beeston, from Digital Space. “Too often, deployments are scoped narrowly around migration and miss the chance to build an enduring strategic relationship. The MSPs who retain and grow their customer base are those that position managed services not just as a one-off project, but as a multi-year optimisation journey. That includes not only cost efficiency but also performance, security, and agility.”

The competitive nature of the cloud market can also present vendor management challenges. “The move to the cloud can be a challenging one, especially as there are so many vendors selling cloud services,” commented Ben Merrills, CTO, Jola. “A common consideration we see from partners is being able to centralise services into one platform, especially when it comes to things like connectivity.

“They value a single centralised platform, where all services can be consumed and managed. Delegation of control is also a fundamental aspect of cloud migration and management. We help partners give their customers the access they require to self-manage and provision.”

It is also critical that the people who will be using the cloud solution are onboard with the transition. “Change management is often underestimated and very often time isn’t considered properly because everyone wants things done – and done yesterday, so there can be a rush,” said Butters, from 8×8. “That’s the wrong way to approach this. Users can be resistant, data migration can be complex and integrations with legacy systems can cause headaches.

“MSPs add real value by managing the entire transition, from planning through deployment to ongoing support. Providing training, minimising downtime and offering proactive monitoring helps customers realise the full benefits of cloud solutions faster and with less disruption.”

James, from Gamma, pointed to several key challenges the company has seen over the years, such as bill shock, skills, security and compliance, and integrating cloud services with legacy equipment.

He added, “Ultimately, if the solution isn’t right for the business, and if people can’t communicate, it’s going to lead to workplace toxicity and declining sales. Partnering with an MSP allows businesses to offload a lot of their worries and turn these concerns around into a predictable enabler of growth.”

Safeguarding data

It is also increasingly critical that providers work with businesses to ensure data security and privacy. Arrow’s Dobson said, “Cloud security must be part of every conversation from the outset. In today’s risky cyber environment, the stakes are high, so channel partners should look to implement zero-trust models, deploy multi-layered security architectures, and ensure that data sovereignty and regulatory compliance are addressed from day one.”

Dobson explained that Arrow helps channel partners by offering multiple security vendors in one platform, enabling partners to “package and deliver security-as-a-service” alongside infrastructure and applications.

Oliver, from Giacom, added, “Security is foundational, and should be embedded into every cloud deployment from the outset. Giacom supports partners in building end-to-end solutions with security integrated at every level. This includes identity-based access, endpoint protection, real-time threat detection, and reliable backup and disaster recovery.

“It is important that security is built in, not bolted on. We are seeing strong results from partners who adopt opt-out security and backup models. This approach positions protection as the default rather than the exception, while helping SMBs better understand their risk exposure.”

Michalski, from TSI, pointed out several options. He said, “Providers have a huge responsibility to ensure their systems are safe and secure. If the data was infiltrated, this can harm not only the end-user business but also damage the provider’s reputation. It is important to safeguard data to retain customers, ensure they trust their provider as well as maintaining their brand reputation and competitive advantage. Products offered must also meet regulatory requirements such as GDPR, MiFID II and PCI Compliance, where necessary.

“Multi-factor authentication and biometric verification helps limit data access to only those who should be authorised to view it. This reduces the likelihood of hackers being able to obtain data. Whilst AI-driven threat detection systems operate in real-time to detect potential threats. Having automated alerting and incident response systems potentially reduces damage as well because providers can act to mitigate threats before they cause harm.”

Geldard-Williams, from Evolve IP, discussed how his company approaches this issue. He said, “Data security and privacy remain at the forefront of our service offering. It’s a given. Too many businesses think it will never happen to them, but businesses need to be prepared. Employee education is key. We constantly train and test our staff as it’s human error that is a huge cause of letting through a threat into the business. People working together is how we can reduce the risk to a business’s security.”

Looking ahead

When asked what to expect in the future of the cloud, AI was the phrase on everyone’s lips. Merrills, CTO, Jola, also highlighted the importance of making the most of data. He said, “Big drivers for the cloud market over the next 12-24 months will be AI and operational efficiency, and how it integrates with existing technologies like data management, observability and analytics.”

He said that Jola supports a wide range of APIs that help partners integrate systems. This helps increase operational efficiency for partners. Merrills added, “Customers hold a wealth of information, often they don’t know how useful or valuable that information is to them, or the success of their business. I think we will start to see new cloud services tap into that data and help drive growth within segments and verticals.”

Michalski, from TSI, added, “The cloud of tomorrow will be deeply intertwined with AI. Businesses will increasingly rely on AI to reduce operational costs, such as through intuitive user interfaces that reduce training needs or auto-generated content such as support documentation and knowledgebase videos. The future of the cloud lies in its ability to simplify complexity, enhance innovation, and deliver value that’s measurable and secure.”

Looking specifically at cloud communications, Walker, from Access4, said, “We expect cloud communications to become even more integrated. AI will play a bigger role in customer experience, and industry-specific solutions will gain traction. Consumption-based models will continue to reshape how services are delivered and billed. For the channel, this means opportunity, but only for those who are ready to lead with insight.”

8×8’s Butters emphasised the digital switchover as a key driver of continued adoption of cloud communications platforms. He said, “Once we get past the PSTN switch-off in January 2027, things will get really interesting. I think you’ll see the cloud will continue to evolve towards more intelligent, outcome-focused solutions.

“In part that means AI will definitely become even more embedded, enabling predictive analytics and automating more workflows. I think you’ll also potentially see more focus on sustainability, with customers seeking providers who can demonstrate energy-efficient operations. Hybrid and multi-cloud models will gain traction as businesses look for flexibility and resilience.”

This market report was included in our September 2025 print issue. You can read the magazine in full here.