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Cost Efficiency

Here is how Cloud Managed Services supports cost-efficiency

Enterprises deploy new and existing applications on the cloud to optimize application delivery and support strategic business objectives for cost rationalization, innovation, and agility. As the cloud becomes integral to an enterprise’s digital transformation journey, they are increasingly adopting a managed cloud services model to manage the environment.

What are Managed Cloud Services? 

Managed cloud services refer to complete or partial outsourcing of an enterprise cloud resource to an external service provider. Cloud services management can include migration, optimization, system security, and maintenance. Managed cloud services encompass tasks across the complete cloud stack, including business services, network, storage, backup, mobility, communication, and collaboration services. Managed cloud services span three deployment models; public, private, and cloud. Managed cloud services help enterprises to optimize cost, improve productivity and performance.

What are the factors driving managed cloud services adoption by enterprises?

Cost optimization, along with a host of other factors, governs an enterprise-managed cloud services strategy. According to research by Pepperdata, 64% of respondents have cited cost management and containment as the topmost priority for running workload on the cloud.

  • Cost savings

By outsourcing cloud management, your business doesn’t need to maintain an internal team for cloud management. The reduced staffing and capital expenditure on IT systems help you realize upfront cost savings.

  • Predictable monthly expenses

Managed cloud services give you the flexibility to choose the services and pricing model that best fits your business requirements. Many services providers offer a tiered subscription model to meet your business range of needs, ensuring that your monthly expenses are within the estimated range. This will ensure that you have a consistent monthly bill even as your business need for cloud resources may fluctuate depending on the external business environment.

  • Resource and performance optimization

Managed cloud service providers can help enterprises determine the services that best fit their workloads and security specification. They can help you understand and select the pricing models that are most cost-efficient for your business needs and guide you on how to configure services to optimize performance while minimizing costs.

  • Integration support

Integration support is one of the key advantages of a managed cloud services model, especially if your organization wants to create a hybrid or multi-cloud environment. Hybrid cloud refers to a combination of on-premises, private cloud, and third-party, public cloud. Multi-cloud is considered a subset of hybrid and usually refers to using multiple public infrastructures as a service (IaaS) environment from different vendors. These environments require more complex configurations, and managed cloud services enable you to get the best-in-class integration support to help you smoothly connect any cloud resource to your system.

  • Disaster recovery support

Managed cloud services help keep your data safe and secure across all cloud services and applications. In the event of a disaster or cyber-attack, your managed cloud service provider will help you minimize the damage and restore data and applications from offsite managed backups with minimal downtime.

  • Innovation and Agility

With managed cloud services providers, you can focus on high-value core work, and your ability to respond to external market environments improves. The strategic business advantage of faster innovation and speed to market helps you become more competitive.

  • Improve Compliance

In a managed cloud services model, your provider is responsible for ensuring regulatory compliance and adherence to data privacy rules. This ensures that your business does not breach any regulations and enables you to focus your efforts on high-priority areas.

How do managed cloud services support cost efficiency?

Businesses have realized technology benefits such as workload performance optimization, faster application delivery, improved security and compliance, and many more. They have achieved strategic business benefits such as enhanced customer service, improved speed to market, and cost advantages.


Source: Frost and Sullivan

It is difficult to do an accurate cloud solution cost-benefit analysis because there are intangible benefits that are difficult to quantify. To assess the cost-efficiency of managed cloud services, both the tangible and intangible benefits derived from the model need to be evaluated.

  • Reduced spending on unutilized resources and cloud storage capacity.

In managed cloud services, businesses need to pay only for the resources that have been used. With customizable plans, you can optimize the amount that you pay for IT support by only bearing the cost of setup that is needed for your business. You have the flexibility to add or reduce servers or storage capabilities as per business requirements. Your business doesn’t suffer losses due to underprovisioning when demand spikes.

  • Reduced IT downtime costs

System downtime can be caused by various factors, and your business’s ability to quickly restore the system is critical to minimizing losses. Managed cloud services ensure high availability, with service-level agreements specifying the uptime or availability failing which provider is liable for penalty.

  • Access to best in class resources with no capital outlay

You get access to best-in-class services and top-quality resources trained in the latest technologies. Managed cloud service providers constantly update their capabilities to provide you with the latest tools and technologies.

  • Reduced cost of risk due to non-compliance

As compliance responsibility is with your provider, the risk and associated cost due to non-compliance are mitigated.

  • Reallocate in-house IT personnel on high-value business projects

An enterprise saves upfront on human resources as an internal IT team cannot manage the cloud environment. The ongoing cost of training resources on the latest technologies is also saved. You can allocate free resources to high-value business projects, thereby deriving more value.

  • Speedy disaster recovery

A managed cloud service ensures faster disaster recovery and business continuity through offsite data storage, thereby limiting the losses due to downtime.

Cloud-managed services to drive business transformation and innovation.

Cloud-managed services help enterprises maximize cost savings and productivity, even driving business transformation. Our consultative approach combined with the technical expertise of more than two decades enables you to augment your internal capabilities to manage the cloud environment effectively. Our cloud specialist can help you drive innovation and business transformation. Get in touch with us to know how we can enable you.