Software MSP

Published on February 15th, 2017 | by Keira Rose

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Cloud Services and Managed IT: How Do The Two Co-Exist?

The IT landscape has undergone a sea change in the past two decades, and what was once the norm is all but obsolete. For example, the size of a company no longer matters – whether you employ a handful of staff or a veritable army, the skillset and knowledge necessary to establish and maintain an IT company remains the same. So, it makes sense that managed IT services would lose their position of power in the industry. In fact, many were quick to dismiss it when cloud started gaining traction in the market and encroaching on its market share.  Things were not looking good for managed services providers (MSP), and it seemed like only a matter of time before they were replaced by public cloud and SaaS (Software as a Service). Proving the naysayers wrong, however, managed IT services not only managed to regain lost ground in Tampa and other US cities but emerged better and stronger than before. What helped MSPs reinforce their positions in the era of cloud computing? Find out below.

Cloud Services

1. MSPs Reinvented Themselves

Managed IT services were originally intended to assist companies with hosted application and infrastructure management. They were also to be used as a point-of-presence (POP) onto the Internet. However, the looming threat of affordable public cloud and SaaS did not bode well for some MSPs. The reliability and effectiveness of cloud computing for enterprise usage were something that stopped them from breathing easy.   However, the pragmatic service providers were far from feeling insecure, as they knew that a switch to a new technology cannot happen overnight. Plenty of important business apps and core business processes were still incompatible with a cloud environment. They were in need for a planned and phased transition. Compliance issues also persisted, making a move to the cloud an elaborate affair. Far-sighted MSP firms took full advantage of this situation. They utilized this period for ramping up their capabilities to be able to provide more streamlined services to new-age businesses. The result? MSPs in their new avatars continued to expand their footprints across major IT markets.

2. E-Commerce Opened up New Opportunities for New-Age MSPs

The e-commerce sector is characterized by the significant use of traditional business-critical elements and applications that demand customizations as per the needs of the enterprise. Implementing changes to such critical processes is expected to give rise to a multi-platform scenario combining in-house, SaaS, hosted, and numerous cloud platforms.

The management of such a convoluted environment isn’t something most enterprises would be willing to invest their time and money. This is the job of a specialist, someone who is skilled at managing combined environment, someone like an MSP.

Managed IT services offer a lot more value than plain management services. The right MSP is capable of providing sound advice. For example, they can say whether on-premises, the cloud, or a hosted environment is the ideal location for individual workloads, after considering compliance constraints, security policies, and cost.

3. Role Expanded for MSPs

In the modern environment, the role of MSPs isn’t just limited to management; they even help their clients with policy making and process management. They also facilitate the outsourcing of complete business processes on behalf of the enterprise.

Thus, managed IT services have outgrown their past role to evolve into a cloud-based provider of business processes. This is good news for the enterprise as they’ll reap the benefits. Some forward-thinking MSPs have begun offering services to support steady-state business activities and help enterprises become more agile.

Whether in established IT hubs like Silicon Valley or the emerging ones like Tampa, managed IT services companies have come a long way since the early days of cloud computing . Today’s MSPs know how to add value to their offering by blending cloud and traditional managed services using practical help and advice. Thus, it is evident that, despite the widespread use of cloud services, managed IT isn’t going anywhere just yet.


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