How will cloud computing affect IT managed service providers?

April 04, 2022

Tags: Managed Teams

managed teams


When a company needs specialized staff to keep its processes computerized, it turns to an IT managed service provider. These are external teams hired to take care of the company's technology, make sure all computerized processes run smoothly, and stay on top of the latest updates.


An IT managed service provider, as defined by the TechTarget portal, “is a third-party company that remotely manages a customer's information technology (IT) infrastructure and end-user systems. Small and medium-sized businesses (SMBs), non-profit organizations, and government agencies contract with these providers to perform a defined set of day-to-day management services. These services may include network and infrastructure management, security, and monitoring.


What is cloud computing?


Cloud computing is expected to greatly affect IT managed services, but before proceeding, we must clarify what is cloud computing? On the official Azure page, they define it as “the delivery of computing services, including servers, storage, databases, networks, software, analysis, and intelligence, through the Internet ("the cloud") to offer faster innovation, flexible resources, and economies of scale. You typically only pay for the cloud services you use, helping you lower your operating costs, run your infrastructure more efficiently, and scale as your business needs change.”


Among the different benefits of cloud computing is its low cost, the speed with which it manages its processes, it has a global scale, a fast and effective execution, it offers maximum productivity to its users and it is quite safe, the latter of great importance. attractive for companies that handle confidential customer and employee data.


How will cloud computing affect IT managed service providers?


Now many people are asking the question, will managed service providers be affected by cloud computing? Both offer similar options for small and medium-sized businesses when it comes to managing their computerized systems, but let's see what the experts have to say.


In IT Pro Portal they say “Apart from the scope of eligible work in cloud computing and managed services, there is hardly any difference between the two. Both operate through the Internet and virtual infrastructure; the only thing that is different is how much they offer on the table.”


managed teams


Should IT Managed Service Providers Use Cloud Computing?


It's already been established: that cloud computing can offer companies benefits similar to those of an IT managed services team, but now the question on everyone's mind is, should managed service providers move their processes to compute in the cloud? 


These are the benefits that cloud computing can bring to IT managed service providers:


  • Greater number of services to offer: Using cloud computing allows a provider to have a greater number of managed IT services to offer to their clients.
  • Low cost: Having a number of cloud-anchored services can mean a significant reduction in operating costs for an IT managed service provider.
  • Increased reliability: Public cloud providers have a pretty good track record of delivering high availability and performance. MSPs trying to provide services based on their own infrastructure may struggle to achieve the same levels of reliability.


At Rootstack, some of our services have moved to cloud computing so we can offer our customers the latest in technology trends. Trust us to manage the computerized processes of your company.


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