Data Center Infrastructure is Dead, Long Live the Cloud Managed Service Provider (MSP)

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Data Center Infrastructure is Dead, Long Live the Cloud Managed Service Provider (MSP)

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Whether an enterprise is ready, whether there is buy-in from the executive leadership and LoBs, and whether the IT team is on board– moving a whole data center (or parts of it) to the cloud is a challenge. Being able to commit to this path and quickly adjust to the resulting changed environment isn’t as simple as making a decision; it requires strategic planning, investment, and perhaps most importantly, commitment. The Managed Service Provider (MSP) business is booming. According to CRN, the market hit $145.3 billion in 2016 and “will grow at a rate of 10.8 percent to $242.5 billion by 2021.”  

Enterprises such as GE  and Capital One were early to recognize the Amazon cloud value, and have managed to keep up with the pace of rebuilding their whole IT infrastructure. More enterprises have followed and will continue to. In order to support such enterprises on their cloud journey, traditional IT managed service providers need to realize the significant business opportunity that awaits. If they do – by adapting their approach to accommodate cloud-focused IT systems rather than continue being integrators and resellers of physical infrastructure – they will surely benefit rather than be left behind.

However, Gartner reported earlier this month that “through 2018, the cloud managed service market will remain relatively immature, and more than 75% of fully successful implementations will be delivered by highly skilled, forward-thinking, boutique managed service providers with a cloud-native, DevOps-centric service delivery approach.” Gartner’s statement is actually good news for traditional MSPs because there is a growth opportunity that most MSPs will not take advantage of. However, you can; if you haven’t already. And, in this article, we’ll show you how. If you’re an MSP already making the transition to cloud, this article will allow you to consider whether or not you’re optimizing the opportunity.

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March 22, 2017

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