Making the cloud leap

There are a lot of similarities between cloud computing and managed services, but views coming from potential clients are more about business transformation than savings they stand to gain if they switch to either model.

Tags: Brocade (www.brocade.com)Systems integrator
  • E-Mail
Making the cloud leap ((ITP Images))
By  Manda Banda Published  January 27, 2014

There are a lot of similarities between cloud computing and managed services, but views coming from potential clients are more about business transformation than savings they stand to gain if they switch to either model.

If you’re a managed services provider (MSP), do you already have the skills and competencies needed to make the jump to cloud computing?

Depending on your take and understanding of the sector, it is clear that there’s a lot of overlap between cloud and managed services.

With analyst firms predicting a 25% annual growth of cloud computing services between 2013 and 2017, there is every indication that it is the bandwagon the Middle East’s channel should be jumping on.

The big picture for MSPs and solution providers moving into cloud services could hardly be more appealing. But it’s also deceptively simple. The reality of the potential cloud market, while full of possibilities, is complex, and channel partners need to decide which elements in the supply chain play to their strengths.

In this region, there is also concerns about cloud security and the readiness of some regional infrastructures to provide the levels of latency and resilience that are necessary for the quality of service expected by application-hungry customers.

Although cloud computing adoption is still in the early stages in the Middle East, two different reseller types that will play a huge role in the adoption and growth of cloud-based offerings are emerging. The first reseller type is focusing on cloud service providing, a partner that wishes to build its own cloud infrastructure and offer cloud solutions to multi-tenancy platforms.

The second type is interested in cloud service brokering with the aim of deploying an already packaged and hosted solution with little capital expenditure.

While MSPs, solution providers or cloud service providers are still managing the business processes whether in a managed services or cloud environment, one of the biggest challenges for partners entering the cloud arena face is adapting to new revenue models. Out go traditional margin measurements and in comes a greater reliance on regular, recurring service billing, and proactive software bundling.

So what’s the real difference between cloud platforms and managed services? While MSPs, solution providers or cloud service providers still manage the applications, the cloud eliminates the need for customers to purchase their own enterprise software licence agreements. That’s an expensive model and that’s why easily-deployed office solutions have started to take off in a big way. The question is how are you transforming your business to make the leap to the cloud?

1749 days ago
Vinod Mehra

There is thin line between the Cloud computing and Managed service other than in cloud 99% you get standard terms whereas in MSP you have the choice to tailor your terms.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code