Threatening Skies: Cloud Computing And The Managed Service Provider

Threatening Skies: Cloud Computing And The Managed Service Provider

Threatening Skies: Cloud Computing And The Managed Service Provider

Business is not easy. Just when you think you have the market figured out, and your business is growing nicely, another new threat comes onto the horizon.

Many VARs and MSPs who built successful businesses implementing or hosting computing infrastructure are dealing with that threat today: the rapid growth of cloud computing. A recent Gartner analysis estimated that global spending on public cloud services will almost double in size from 2012 to 2016, reaching $210B in 2016 – with Infrastructure as a Service (IaaS) projected to grow the fastest at over 40% CAGR.

To add even more fuel to the fire, much of that growth is coming from small and medium enterprises (SMEs), companies that most VARS and MSPs consider their most significant customers. Recent remarks from a McKinsey & Company analyst at UBM’s Cloud Connect conference were a dire warning to SMB focused service providers: accelerate your transition to the cloud or your business will die.

So, is the cloud something VARs and MSPs can’t weather?

Managed service providers, VARs and distributors around the globe are starting to get the message. Most small to midsized service providers realize they won’t be able to beat the big public cloud guys on price (due to the economies of scale advantage that large providers have). As a result, they are focusing on reliability, ease of use, service levels, support services and customer responsiveness to differentiate themselves.

While strong relationships and the trust of their customers are necessary assets, it is critical not to depend on them alone for continued success. If your customer can reduce their costs by more than 50% by moving to a new technology from a new provider – they will. That is what is happening in the cloud – and your only option is to get into the game with your own differentiated offering.

To build a managed cloud service that meets the needs of SME customers starts with choosing the right cloud provisioning and management software. There are more options every day, but here are some of the key points to consider as you evaluate the different cloud management software products:

Security for multi-tenancySecurity will always be the top concern for customers. Because of these providers can differentiate on the protection their cloud services are able to offer. This includes not only secures isolation of services but also how they are able to protect customer data and applications. With public cloud services using shared infrastructure to support multiple clients, companies should always inquire about the security of the software’s partitions and resources.

Ease of use – A high priority consideration for any user moving to the cloud is time-to-deployment of computing resources and any service chosen should come with the flexibility for users to adapt to their specific needs. MSPs will need to take into consideration the need for intuitiveness, and ensuring users can create, easily design, deploy, manage and pay for a customized solution as they are built and consumed.

Support for all their applications – Not all applications are easily virtualized, especially the more mission critical or performance-intensive applications like databases. Providers will want to consider a cloud management software that provides a mix of virtual and physical servers or support a cloud with a mix of hypervisors.

High availability and business continuity – MSPs can differentiate on reliability as users want a cloud that provides high availability and disaster recovery services. As such, MSPs should look for a cloud management software that can provide automated n+1 continuity services. This is particularly critical if the MSP wants to make money in the cloud. Without n+1 and automation, continuity features are expensive as they double the infrastructure needed or add a lot of manual processes to the burden of cloud operators.

Cost reduction – Let’s be honest, a major driver for moving to the cloud is the reduction in CapEx and OpEx. This is table stakes. As such, to keep the costs down, any cloud management software must optimize existing hardware and consolidate as many physical components. The way to do that is with a converged infrastructure. Converged infrastructure and cloud management software can speed your transition to the cloud, all while keeping your costs in line and you competitive.

The advent of cloud computing is similar to other market transitions that have occurred over the decades, and in every case there are those that adapt and those that get left behind. The winners and losers are distinguished by how quickly they can evolve their business models and strategy to implement services that provide more value to their customers than alternatives. If you haven’t already started down the path toward offering cloud services, today is the day. Hopefully the guidelines above will help you succeed and grow while those firms who don’t adapt to the reality of the cloud will certainly suffer as a consequence.

By John Humphreys, VP of Marketing at Egenera

humphreysPrior to joining Egenera, Humphreys was senior director, Data Center and Cloud Marketing at Citrix Systems. There he drove efforts around virtualization and cloud and had responsibility for developing marketing strategy, defining packaging and pricing, leading program execution, driving customer engagements and pre-sales activity, and acting as a primary spokesperson. Prior to Citrix, Humphreys founded and was vice president of the virtualization practice at IDC, a global information technology research firm.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

One Response to Threatening Skies: Cloud Computing And The Managed Service Provider

  1. Internet security has always been a matter of concern for everybody and therefore computer savvy people try and test different ways out to make Internet environment safe and secure. With this thought in mind cloud service providers also work out ways to safeguard their clouds they have been managing for their clients from thefts like spamming and hacking.
    Moreover, security threats are important to deal with because it would interrupt other organizations to choose for cloud services further.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery  Business downtime can be detrimental without a proper disaster recovery plan in place. Only 6% of businesses that experience downtime without a plan will survive long term. Less than half of all businesses that experience a disaster are likely to reopen their doors. There are many causes of data loss and…

Cloud Infographic – Big Data Survey: What Are The Trends?

Cloud Infographic – Big Data Survey: What Are The Trends?

Jaspersoft Big Data Survey Shows Rise in Commitment to Projects and Decline in Confusion Nearly 1,600 Jaspersoft Community Members Participate in Second Jaspersoft Big Data Survey San Francisco, February 4, 2014 – Jaspersoft, the Intelligence Inside applications and business processes, today shared results from its Big Data Survey. Nearly 1,600 Jaspersoft community members responded to…

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats Each week on CloudTweaks we provide a few shoutouts to companies who provide engaging and interesting infographics that reflect our readers interests.  In this case, we have an excellent infographic provided by the team at arellia.com which takes a closer look at cyber-security and some of the biggest malware threats…

Cloud Infographic: Most Used Cloud Apps

Cloud Infographic: Most Used Cloud Apps

Cloud app and analytics company, Netskope released its quarterly Cloud Report. The new report reveals that enterprise employees are using an average of 397 different cloud apps (most of which are unsanctioned), when IT estimated they have 40-50 — that’s a tenfold underestimation. Below is an infographic provided courtesy of the group at Netskope which goes into further detail.…

Cloud Infographic – Cyber Security And The New Frontier

Cloud Infographic – Cyber Security And The New Frontier

Cyber Security: The New Frontier The security environment of the 21st century is constantly evolving, and it’s difficult to predict where the next threats and dangers will come from. But one thing is clear: the ever-expanding frontier of digital space will continue to present firms and governments with security challenges. From politically-motivated Denial-of-Service attacks to…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

2015 Advertising Opportunities - Find Out More!

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter