Introduction
As companies grow and need to add more capabilities and resiliency, they almost invariably turn to the cloud.
Cloud platforms enable scale at a pace and strength not seen before this digital age, allowing businesses to efficiently add technical infrastructure, storage, and software solutions without investing in physical hardware.
Instead, virtualization allows them to grow as needed via outsourced IT and development environments.
As the value of cloud platforms has grown and adoption has spread, so has the complexity of the technologies, methods, and options available.
Even with strong technical expertise, most growing companies struggle to dedicate the resources necessary to implement and manage cloud solutions effectively.
A common challenge during cloud adoption and expansion is balancing the needs of cloud engineers within a company’s existing software organization.
One solution to this problem is outsourcing the most challenging parts of cloud computing management to a Managed Service Provider (MSP).
These partners offer dedicated resources that manage cloud solutions for you, including network and infrastructure management, creating a solid cloud technology foundation so businesses can focus on other critical and more strategic aspects of growth.
Like insurance policies provide security, MSPs allow companies to leverage the cloud safely and effectively.
This guide to cloud MSPs is for growing businesses interested in gaining more control and sustainability over their cloud operations.
It offers a simple and cohesive guide to what MSPs are, their benefits, and whether or not a cloud MSP is the right fit for your business.
The Building Blocks of Managed Cloud
THE SOLUTIONS
Managed Service Providers help businesses with the three primary cloud solutions: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).
Although they can be used simultaneously, each solution caters to different purposes and needs.
- IaaS supports the management of crucial technology infrastructure in the cloud, enabling businesses to rent virtual servers, storage, and networking infrastructure from a cloud provider. IaaS is ideal for companies that desire a high level of customization and control over their infrastructure.
- PaaS is designed for application development in a secure and isolated cloud environment, providing developers with the necessary tools and resources. PaaS suits developers who want a platform to build and deploy applications quickly without needing to support or manage the underlying infrastructure.
- SaaS offers ready-made solutions that operate entirely on the software providers’ cloud systems. SaaS is a convenient option for organizations that want to use software applications without the hassle of managing infrastructure or application development.
THE MODELS
MSPs also assist organizations based on how they deploy cloud solutions, including Public, Private, Hybrid, and Multi-cloud.
- Public cloud is simply outsourcing and virtualizing data centers, technology infrastructure, and the maintenance involved. MSPs are excellent resources for managing public cloud solutions because of their expertise, experience, and relationships with top cloud solution providers (e.g., AWS).
- As its name suggests, a private cloud entails a closed-off data center created and managed solely for an individual company, often with a much more traditional and limited set of offerings. MSPs in this field sometimes offer additional support for public cloud, but this is not typically a guaranteed offering.
- Hybrid and multi-cloud refers to cloud computing in private and public environments, often because a company is migrating to the cloud or needs different hosting environments to support specific business functions or data types. Strong MSPs should know and understand private cloud management within the broader context of hybrid and multi-cloud computing.
THE OFFERINGS
Cloud MSPs provide expertise and assistance in implementing, managing, and optimizing cloud infrastructure, platforms, and software. They help both cloud-native companies as well as those that still need to migrate to the cloud. Leading MSPs provide dedicated personnel to manage the relationship with their clients so businesses do not feel disconnected from the management of their cloud infrastructure. Strong MSPs offer many of the services below:
- Network management
- Monitoring
- Maintenance
- Security and compliance support
- Back-ups and data restoration
- Technical support
- Migration services
- Billing management
- Flexible incident response
- Alerts and incidents messaging
- Change and service requests
The Drivers of Managed Cloud Services
Outside of operational efficiency and technical expertise related to cloud solutions, MSPs offer tremendous business value in a variety of areas.
SCALABILITY AND FLEXIBILITY
Small organizations often need more experience with cloud technology but find hiring and training personnel with sufficient IaaS and PaaS expertise to be cost-prohibitive.
They may have one or two individuals covering various DevOps functions, but these contributors are likely stretched too thin or need more comprehensive cloud mastery.
Even with capable cloud and DevOps experts, managing complex and expensive processes while expanding IT infrastructure in other areas can be challenging.
MSPs provide expertise and scale for managing cloud infrastructure, benefiting businesses lacking in-house resources and bridging knowledge and execution gaps in cloud management.
MSPs enable companies to grow without constant personnel expansion by serving as dedicated resources and subject matter experts.
They provide flexible scaling, industry expertise, knowledge transfer, and continuity planning and can ease the growth process by serving as a support system during seasonal or temporary capacity strains.
COST REDUCTION AND CONTROL
MSPs play a crucial role in cost reduction within cloud environments because they bring transparency and centralization to financial management.
They give businesses a clearer understanding of their cloud costs and provide strategies to optimize and control them effectively.
MSPs use their experience and acumen to uncover and manage hidden and unforeseen costs for their clients while streamlining the main financial processes with cloud service providers (including billing, invoicing, and contract negotiations).
They optimize the setup of a business’s cloud infrastructure from the beginning to ensure it is cost-effective, continually analyze the cloud environment, and recommend and implement improvements to resource allocation, scaling, and usage.
In all, MSPs help businesses gain better visibility and control over their cloud-related expenses.
FOCUS ON CORE BUSINESS COMPETENCIES
While time-consuming and less strategic, technology infrastructure is foundational and necessary for the reliability and integrity of all other parts of the organization.
MSPs manage the mundane but critically important aspects of the modern cloud, taking ownership of some of the most tedious features of cloud management, including compliance, security, and observability.
MSPs allow the business to focus on the most strategic parts of their organization, knowing that their crucial cloud systems are expertly managed.
RISK MANAGEMENT AND DATA SECURITY
One of the best things about outsourcing cloud management is offloading security, compliance, and risk management–and their accompanying stress.
Leading MSPs conduct comprehensive risk assessments, provide 24/7 security monitoring, and assist in vulnerability management.
MSPs conduct security audits, establish data backup and disaster recovery systems, and offer security training while managing security infrastructure and developing tailored security policies.
By leveraging their expertise and resources, MSPs help organizations reduce risks, detect and mitigate threats, and ensure critical data confidentiality, integrity, and availability.
SPEED AND AGILITY IN DEPLOYING IT SOLUTIONS
Companies may have a specific objective that can be solved using cloud infrastructure, but they may lack the knowledge or personnel to solve the problem within their industry.
With their experience, MSPs have encountered similar challenges before and can provide valuable guidance.
They bring tools – such as DevOps, automation, and other tested methodologies – with successful deployments across multiple clients, allowing efficient and streamlined solutions.
MSPs also leverage economies of scale that may not be accessible to their clients, particularly smaller companies.
Real-World Benefits of Outsourcing Cloud Management
Knowing the general bells and whistles of MSPs is one thing, but businesses should also understand how cloud MSPs work in a specific, cohesive way to improve business performance.
Consider these illustrative case studies based on real-world scenarios that demonstrate successful cloud management outsourcing.
CASE STUDY 1 – TO HIRE OR NOT TO HIRE
Challenge
A small financial services company needed help managing its AWS cloud solution in line with its technology products.
The company grew fast and needed to focus more on DevOps to scale safely.
They were contracting outside part-time personnel to assist, but this approach was not comprehensive or sustainable.
They considered hiring an expert but feared the risks of turnover and scalability.
Solution & Result
They partnered with an MSP, choosing to outsource their confusing and stressful DevOps process and reduce the time and risks of onboarding a dedicated employee.
The MSP assigned a full-time cloud engineer to manage the infrastructure, who was proactive and communicative with the client and brought a Full-Time Employees (FTE) dedication without the complications of direct employment.
Since the MSP started, the FS company could reduce contracted headcount, reduce and normalize their costs, and maintain a functioning DevOps process.
Their volume tripled in a year, and they could scale and survive demand surges without hiring.
They also gained something they were sorely lacking– peace of mind and the ability to grow while uninhibited by the challenges of managing technology infrastructure.
CASE STUDY 2 – A SHIP IN THE STORM
Challenge
A real estate and vacation rental company in the hospitality industry faced a critical issue as its on-premise IT needs rapidly expanded.
Not only were they scaling quickly, but their technology infrastructure was located close to the beach, and one intense hurricane could severely damage their hardware and bring catastrophe to business operations.
When two business-critical apps went down, the company needed to make technology changes quickly, but with less than ten employees, there was no one with relevant experience in infrastructure.
Solution & Result
The real estate company hired an MSP to help migrate its infrastructure from its perilous coastal position to a virtual and scalable cloud environment and to become its official infrastructure manager.
While a change of location was a relief to the company, the ongoing relationship with the MSP became a huge advantage.
The MSP collaborated with them as their tech needs evolved, allowing them to be agile and competitive in ever-changing markets.
CASE STUDY 3 – THE HELPING HAND
Challenge
A small SaaS product specializing in HR software was nimble and cloud-native, but as it grew, its expertise and ability to manage its cloud in-house changed from an asset to a significant time cost.
The company built its cloud computing on a solid, low-complexity foundation, but its small, valuable tech team needed to focus on more strategic things.
Still, the company resisted outsourcing because of its dedication to internal technology ownership.
That is until they started to compare the cost of adding a full-time cloud engineer to their staff with leveraging an MSP.
Solution & Result
Begrudgingly, the company explored MSP vendors but was pleasantly surprised to find a provider that could offer them an incredibly personalized experience.
After only a few weeks of working with their assigned cloud specialist, the company found they had lowered their stress, not their sense of control over their infrastructure.
The MSP’s cloud engineer took the time to understand their systems and took proactive charge of monitoring, offering improvements, and implementing best practices.
The SaaS company realized that outsourcing did not mean letting go, and continued to grow with a feeling of safety and confidence that its technology was well-supported.
Trade-offs and Considerations of Managed Cloud
Despite the very real benefits of MSPs, it is also true that working with one has drawbacks and risks. An MSP partnership might not be appropriate for every business. Understanding the ins and outs of working with an MSP and asking the right questions is critical. Below are some trade-offs and considerations of working with an MSP.
LOSS OF CONTROL
With an MSP, you may inherently give up control over the basics of your infrastructure.
While this is precisely the draw for many businesses, some operate in industries with very stringent regulations and security controls or manage very complex systems, making the total handover of cloud computing unfeasible.
If this is a concern, a business can explore incrementally working with an MSP, signing up for assistance rather than comprehensive management.
DEPENDENCY ON THE SERVICE PROVIDER
One trade-off of working with a Managed Service Provider is that organizations often become reliant on the expertise and support provided by the MSP.
The client’s cloud computing future is tied to the reliability and evolution of the MSP’s technology.
For example, a single MSP for critical services introduces the risk of a single point of failure. If the MSP experiences an outage or disruption, it will impact the organization’s operations, data access, and overall business continuity.
In addition, if the MSP does not offer a competitive set of services that evolve with market innovation, the client may outgrow the provider they rely on.
Organizations can carefully select reputable and reliable MSPs to mitigate the dependency on service providers. They can also implement contingency plans and redundancy measures to minimize risks associated with a single MSP dependency.
COST COMPLICATIONS
Understanding the cost structure of managed cloud services, including setup, ongoing/operational, and hidden costs, is critical.
For example, cloud providers will charge based on different services, such as users, storage usage, data transfer, and the level of support required, and their service charges may not align well with a company’s anticipated usage patterns.
Some services, like data backups or disaster recovery services, may also be not included in the SLA but are charged later as additional costs.
In addition, the MSP should be transparent about billing practices and provide usage reports so your company can track spending accurately.
It is essential to review SLAs and contracts thoroughly beforehand to avoid unforeseen financial burdens and to select a trustworthy, transparent provider.
KNOWING WHETHER TO ADOPT
Not every growing company is a great candidate for MSPs, but how do you determine for your own business?
The table below shows some current states of growing businesses and how well they align with using an MSP.
Some of the main factors that impact the value of hiring an MSP are the complexity of a business’s tech requirements around cloud computing and the amount they spend maintaining their technology.
For example, for a company with high spending and low complexity, an MSP is a perfect fit because the provider’s cost is often lower than doing it internally.
On the other hand, a company with low complexity and low spending can gain peace of mind from outsourcing their cloud to an MSP, but they may be able to manage it in-house without too much effort.
Using the examples in the grid as a starting point, you can examine your technical requirements and business needs to decide whether or not you truly need an MSP.
High Complexity / Low Spend
This process brings you lots of headaches but a relatively low financial burden. It’s an excellent fit for an affordable MSP.
High Complexity / High Spend
Due to potential risk and the need for control, this cloud management often requires full-time hires, traditional consulting, and/or an MSP. You’ll want to pick an MSP carefully.
Low Complexity / Low Spend
MSPs bring peace of mind and lower internal overhead, but a relatively simple cloud setup can be managed with a small team as well. You could pass on an MSP.
High Spend / Low Complexity
This is a perfect scenario for outsourcing the cloud as it relieves you of a non-strategic tech function at a cost that is more financially feasible. MSPs were made for this!
WHAT TO ASK WHEN EVALUATING MSPS
To ensure you select the best MSP for your business, you should understand an MSP’s complete set of offerings and how they engage with their customers regularly. Below are 8 essential questions to explore with a potential MSP.
1) Does this provider have experience in my industry?
2) Does this provider offer a holistic set of services or only specialize in one part of cloud computing (e.g., data storage)?
3) What is their relationship with my company’s cloud provider? Do they have a partnership with my company’s cloud provider?
4) Do they have the right credentials to interact with our systems?
5) How will this provider interact with my business? Is it only through tickets or do they have a dedicated team member?
6) What is their average response time? Are they available 24/7/365? Are they available in our local time zone?
7) What is the expected output of the agreement (e.g., assigned engineers, a centralized platform, etc.)
8) What constraints and exclusions are present in the provider’s SLA? What are the boundaries of what the MSP offers?
MAKING THE DECISION
Hiring an MSP is similar to hiring an accountant to do your personal taxes.
While you could take the time to learn and do your taxes, without the expertise of an accountant’s degree, you will risk making mistakes, missing tax break opportunities, or paying more money than necessary.
An accountant’s skill and experience make them a trustworthy partner and bring you peace of mind.
Similarly, many companies can reasonably conduct their cloud management.
However, before they are of a size that can effectively support a dedicated cloud services team, they will be exerting more effort, spending more money, and exposing themselves to more risk than if they were to outsource the job to a qualified MSP.
It is often in the best interest of a scaling company to align with an expert partner to set them up for success in the future.
Still, while cloud computing is part of a journey that almost every modern business must go on, it is for each company to decide if they want an MSP by their side.
About [Defiance]
Founded in 2020 out of Defiance Ventures, Defiance Digital is an AWS managed services provider offering pay-as-you-grow cloud services and consulting for small and medium businesses. We focus on delivering personalized support and exceptional results through direct access to elite cloud engineers who embrace our ‘customers as co-workers’ ethos. Our mission is to maximize cloud benefits while minimizing complexity and costs, allowing our clients to focus on their core business.
Our team of cloud experts offers end-to-end support, from strategy to execution, providing our clients with reliable, secure, and scalable solutions tailored to their unique needs. We foster strong relationships with AWS, Datadog, Lacework, Clumio, and other strategic partners to provide the best-of-breed security, observability, automation, and public cloud solutions. We operate with transparency, thoughtfulness, proactivity, and agility and constantly evolve to remain valuable partners for our scaling customers.
