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Home>Blog>Managed Cloud Services: Your Key to Cloud Mastery and Cost Savings

Managed Cloud Services: Your Key to Cloud Mastery and Cost Savings

February 2, 2024 | 5 min read

In this article

  • What are Managed Cloud Services and Why Do Businesses Need Them?

  • Managed Services Offered by Cloud Providers

  • Types of Managed Cloud Services

  • Benefits of Managed Cloud Services

  • Selecting the Right Managed Cloud Service Provider

  • The Future of Managed Cloud: A Glimpse Ahead

  • Summing Up

  • FAQ

Modern businesses increasingly rely on complex cloud computing services because they offer flexibility, scalability, and cost-effectiveness. However, the complexity of managing these environments has grown exponentially. Managing cloud infrastructure in-house requires specialized expertise and resources. That is why many leaders are turning to managed cloud services (MCS).

By outsourcing cloud management to managed cloud service providers, companies free up internal IT teams to focus on strategic initiatives. This approach not only simplifies cloud management but also unlocks a range of benefits that can significantly impact business outcomes.

Managed Cloud Services: Your Key to Cloud Mastery and Cost Savings

What are Managed Cloud Services and Why Do Businesses Need Them?

MCSs are outsourced cloud management solutions provided by specialized companies called Managed Cloud Service Providers (MCSPs). They handle tasks like provisioning, monitoring, optimizing, and securing your cloud environment, freeing you to focus on your core business goals.

The rising need for this kind of service is emphasized in The Flexera 2023 State of the Cloud Report. Based on a survey of 750 global technology leaders, the report highlights trends and challenges faced by cloud users in 2023. Besides cost and security challenges, the lack of resources remains a persistent challenge. Finding skilled personnel with cloud expertise continues to be a significant hurdle for organizations and that is why they opt for hiring a managed cloud service provider.

top cloud challenges

Cloud challenges faced by enterprise and small and midsized businesses (SMB)

Another report conducted by Mordor Intelligence paints a compelling picture of the managed cloud services market, predicting substantial growth over the next decade.

Basic Findings:

  • Managed cloud services will see explosive growth in the coming years, with a global CAGR exceeding 7%.

  • Small and midsized businesses (SMBs) are expected to be the main drivers of this growth, increasingly outsourcing non-core tasks.

  • Implementing managed services effectively can significantly reduce IT costs (25-45%) and improve operational efficiency (45-65%).

Market Size of Managed Services Industry

Managed Services Offered by Cloud Providers

MCSPs provide a variety of services tailored to meet the specific needs of businesses, ranging from basic infrastructure management to comprehensive cloud governance and optimization. They can handle a wide range of tasks, including:

  • Onboarding and migration: Assisting with the migration of workloads and applications to the cloud

  • Configuration management: Maintaining and optimizing cloud infrastructure settings

  • Performance monitoring and optimization: Identifying and resolving performance bottlenecks

  • Security and compliance: Implementing and enforcing security best practices and ensuring compliance with regulations

  • Patch management: Keeping cloud infrastructure up-to-date with the latest security patches and software updates

  • Problem resolution and support: Providing 24/7 support for cloud-related issues

In essence, a managed cloud service provider acts as a trusted advisor and expert, taking on the complexities of managing the cloud while enabling businesses to focus on their core competencies and strategic initiatives.

Types of Managed Cloud Services

Software as a Service (SaaS)

Not all businesses have the same cloud needs. Managed cloud services cater to this diversity by offering a menu of service types, each specializing in different areas of your cloud environment. Let's explore the main options:

1. Infrastructure as a Service (IaaS)

Think of your servers, storage, and network as the building blocks of your cloud. IaaS management is like having a dedicated architect and construction crew for these foundations. Managed service providers take care of provisioning, configuring, and maintaining these resources, ensuring smooth operation, optimal performance, and robust security.

Example: A healthcare provider with sensitive patient data utilizes IaaS management to ensure their servers are secure, reliable, and compliant with HIPAA regulations. The service provider handles provisioning, configuration, and maintenance, freeing the healthcare team to focus on patient care.

2. Platform as a Service (PaaS)

For businesses building applications on platforms like AWS Elastic Beanstalk, PaaS management acts as a skilled conductor. A managed service provider handles the deployment, configuration, and scaling of your apps, ensuring they run smoothly and adapt to changing demands. Whether your app is a small startup project or a complex enterprise solution, PaaS management keeps it humming.

Example: A fintech startup building a mobile banking app leverages PaaS management. The provider handles deployment, configuration, and scaling, allowing the startup to focus on development and innovation without worrying about infrastructure complexities.

3. Software as a Service (SaaS)

Imagine having a personal assistant for all your SaaS subscriptions. SaaS management does just that, taking over subscription management, licensing, usage tracking, and performance monitoring. Managed service providers become experts in your SaaS landscape, optimizing resources, ensuring compliance, and freeing you to focus on core business functions.

Example: A large retail chain uses SaaS management to optimize their numerous SaaS subscriptions, ensuring they're using the right tools efficiently and securely. The service provider takes over the mundane tasks, freeing the IT team to focus on strategic initiatives.

4. Hybrid Cloud Management

For businesses operating in a hybrid cloud world, with workloads spread across diverse environments, hybrid cloud management acts as a bridge-builder. MCSPs weave together your public, private, and hybrid cloud environments, ensuring seamless integration, centralized orchestration, and unified visibility.

Example: A manufacturing company with a mix of on-premises data and cloud-based applications uses hybrid cloud management. The provider connects everything, ensuring smooth data flow, consistent security policies, and centralized management, streamlining operations and improving efficiency.

These are just some of the service types available. Remember, the beauty of managed cloud services lies in their flexibility. You can choose partial or complete management, or tailor a custom solution to perfectly match your specific cloud needs.

Benefits of Managed Cloud Services

Benefits of managed cloud services

Outsourcing your cloud management to an experienced managed cloud service provider unlocks a treasure chest of benefits that can transform the way your business operates. Let's delve into some of the key advantages:

1. Cost Optimization

Imagine shedding the burden of hiring in-house cloud experts, acquiring expensive management tools, and maintaining your own infrastructure. Managed cloud services deliver cost savings in multiple ways:

  • Reduced IT overhead: No need for dedicated cloud staff, leading to lower personnel costs and increased IT resource flexibility.

  • Pay-as-you-go scalability: Scale your cloud resources up or down as needed, avoiding overspending on unused infrastructure.

  • Optimized performance: The expertise of cloud service providers maximizes resource utilization, minimizing wasted resources and associated costs.

2. Boosting Efficiency and Productivity

Freeing your IT team from the shackles of cloud management unlocks their potential to focus on strategic initiatives. This translates to:

  • Enhanced innovation: IT staff can devote their skills to developing and implementing cutting-edge solutions.

  • Improved business agility: Respond quickly to changing market demands by scaling cloud resources seamlessly.

3. Enhanced Security and Compliance

Cloud security can be a daunting aspect, but with cloud managed services, you rest assured knowing your data and applications are in expert hands. Benefits include:

  • Advanced security expertise: Your managed cloud service provider stays ahead of evolving threats, implementing robust security protocols and best practices.

  • Simplified compliance: Navigate complex compliance regulations with ease through MCSPs' proactive compliance management.

  • Reduced risk of data breaches: Benefit from multi-layered security measures and comprehensive disaster recovery plans.

4. Access to Specialized Expertise

Gaining access to a seasoned team of cloud professionals is one of the most valuable benefits of managed cloud services. This includes:

  • Deep knowledge of cloud technologies: Leverage the expertise of MCSPs who navigate the complexities of different cloud platforms.

  • Proactive problem-solving: Managed cloud service providers anticipate and address potential issues before they disrupt your operations.

  • Continuous optimization: Benefit from ongoing recommendations for improving your cloud environment's performance and efficiency.

By choosing managed cloud services, you're not just outsourcing tasks; you're partnering with a team of cloud experts who become an extension of your own. These are just a few of the myriad benefits that await you on your journey to a seamless and optimized cloud experience.

Selecting the Right Managed Cloud Service Provider

managed cloud service providers

Choosing the right MCSP is a crucial decision, as they become entrusted guardians of your cloud environment. So, how do you navigate the maze of options and find the perfect fit? Here's a compass to guide you:

1. Defining Your Needs

Before setting sail, take stock of your specific cloud needs. Ask yourself:

  • What type of cloud services do I require (IaaS, PaaS, SaaS, hybrid)?

  • What level of support and expertise do I need?

  • What security and compliance requirements must be met?

  • What is my budget for managed cloud services?

Once you have a clear picture, you can start exploring potential partners.

2. Evaluating MCSPs

Don't just choose the flashiest ship. Look for an MCSP with:

  • Proven experience and track record: Check for successful client stories, industry certifications, and awards.

  • Expertise in your chosen cloud platform(s): Ensure they have deep knowledge of the specific platform you use.

  • Robust security practices and compliance certifications: Look for industry-standard security protocols and relevant compliance certifications.

  • Clear communication and transparent pricing: Open communication and transparent pricing models are essential for a smooth partnership.

3. Exploring Trial Offers and References

Before signing on the dotted line, take advantage of trial offers or demos to experience the managed cloud service provider firsthand. Additionally, reach out to existing clients for honest references.

4. Aligning Values and Culture

Beyond technical qualifications, consider the cultural fit. Choose an MCSP whose values and communication style align with your own. A strong, collaborative partnership will ensure long-term success.

Remember, choosing the right cloud managed service provider is an investment in your cloud journey. By carefully navigating the selection process, you can find the perfect partner to guide you toward a smooth, secure, and cost-effective cloud experience.

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The Future of Managed Cloud: A Glimpse Ahead

The future of managed cloud services shines brightly, driven by the driven by advancements in technology and the ever-changing needs of businesses. Here's a glimpse into what the future holds:

  • Hyper-personalization: Specialized solutions catering to your industry's unique needs.

  • AI-powered management: Automation and intelligence optimize everything from resource allocation to threat detection.

  • Multi-cloud mastery: Seamless orchestration across diverse environments for ultimate flexibility.

  • Unwavering security: Advanced solutions and continuous monitoring safeguard your cloud journey.

  • Sustainable innovation: Eco-friendly options and cost optimization empower responsible growth.

  • Continuous evolution: Agile providers adapt to emerging technologies and your evolving needs.

By staying ahead of these trends, managed cloud services will continue to be a vital tool for businesses navigating the complexities of the cloud. Choosing the right provider who can adapt and innovate alongside you will be key to unlocking the full potential of this transformative technology and ensuring your success in the ever-changing digital landscape.

Summing Up

As we navigate the ever-shifting cloud landscape, the Flexera report paints a clear picture: managing your cloud effectively is no longer an option, it's a necessity. Optimizing cost, navigating diverse environments, and maximizing security require specialized expertise and resources that many businesses simply lack. This is where managed cloud services (MCS) emerge as a powerful ally.

By partnering with a vendor that offers managed cloud services, you gain access to a team of cloud veterans who take the reins of your infrastructure, freeing you to focus on your core business.

In the hyper-competitive digital environment, embracing MCS isn't just about optimizing cloud operations, it's about gaining a crucial advantage. Your competitors are already leveraging the power of cloud expertise; can you afford to fall behind?

FAQ

1. What are managed cloud services (MCS)?

MCS encompasses a wide range of outsourced cloud management solutions that help businesses optimize their cloud infrastructure and maximize its benefits. These services are typically provided by managed cloud service providers (MCSPs), specialized companies with in-depth expertise in cloud technologies and management practices.

2. Who should consider using cloud infrastructure services?

Any business using the cloud can benefit from MCS, especially those who:

  • Lack in-house cloud expertise: Don't have the necessary experience or resources to manage their cloud infrastructure effectively.

  • Struggle with cloud cost optimization: Need help controlling and optimizing their cloud spend.

  • Face complex compliance requirements: Need assistance navigating industry-specific regulations and ensuring compliance.

  • Want to focus on core business functions: Desire to free up their internal IT team for strategic initiatives and innovation.

3. How much do managed cloud services cost?

The cost of MCS can vary depending on the specific services you require and the size of your infrastructure. Typically, MCSPs offer flexible pricing models, such as pay-as-you-go or tiered plans.

4. Can I manage some of my cloud resources myself and use MCS for others?

Absolutely! Instead of using fully managed cloud service, many businesses adopt a hybrid approach, using MCS for complex or critical tasks while managing simpler aspects in-house. This allows you to leverage the expertise of MCSPs while maintaining control over specific parts of your cloud environment.

5. What are the risks of using cloud managed services?

While MCS offers advantages, consider potential risks:

  • Vendor lock-in: Research exit strategy to avoid future limitations.

  • Security & compliance: Verify robust security practices and compliance alignment.

  • Transparency & control: Opt for vendors offering clear communication and some decision-making power.

  • Service Level Agreements: Ensure SLAs meet your expectations and outline penalties for non-compliance.

  • Hidden costs: Understand the cost structure and potential additional fees.

  • Vendor reputation: Choose a provider with a strong track record and positive client feedback.

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