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We're Going to See a Shift Away From MSPs: Here's Why

People who study up on cloud computing frequently read about the influence of managed service providers (MSPs) on the industry at large.

Indeed, MSPs offer numerous advantages to their clients, such as ongoing off-site maintenance subscription plans that facilitate scalability. However, factors indicate a future shift away from MSPs as more customers opt for hybrid services.

Dropbox Already Made Such a Move

Dropbox once solely depended on Amazon Web Services (AWS) for its cloud-related needs. However, it decided to build its own infrastructure and network.

While Dropbox has been clear that its time spent working with AWS was very rewarding, the company is now looking to develop its own infrastructure. Dropbox will continue to use AWS for some workloads. For example, Dropbox doesn't have any European data centers and uses AWS to serve its Europe-based clients.

However, the file storage company's representatives say the move away from primarily depending on AWS and building its own network has been a good business decision overall. Besides the increased control it provides, the private infrastructure the company created saved Dropbox nearly $75 million over two years.

Of course, not just any company can move away from their service providers. MSPs offer much-needed services to smaller businesses, including network security, data backups and regular network maintenance and clean-up services. However, for a huge company with expendable finances to devote to further product and IT development, we're likely to see a shift away from MSP in the future.

Significant Cost Savings Are Alluring

Dropbox's shift away from AWS is a strong example of how it's possible for a company to take a hybridized approach to meet their cloud needs and save a substantial amount of money in the process. Analysts have also weighed in to say that Snapchat is another major brand that could potentially cut their costs by building a private cloud.

Brands could particularly benefit from making that move if they cater to huge numbers of people and know MSPs likely cannot handle sudden increases in scalability - as could happen if Snapchat moves into a new market or offers a feature that's in demand more than others. However, when building an infrastructure internally isn't an option, a hybrid could be the next best bet.

The Hybrid Model Offers More Services and Flexibility

The desire for continual innovation is one factor that pushes companies to a hybrid model. Cathay Pacific Airways flies cargo and passenger jets to 52 global destinations. It wanted to evolve from its traditional, on-premises model and was interested in the extent to which the hybrid cloud approach could go beyond the offerings of a single provider.

Now, the airline's infrastructure is highly scalable, and representatives report the ability to deploy applications faster than before. As a result, the value the company provides to customers has gone up, making Cathay Pacific Airways increasingly competitive in a challenging sector.

Cloud technology is not a one-size-fits-all market, and that's one of the reasons why some larger companies have found the hybrid model appealing. MSPs could potentially attend to some of the challenges companies have by offering them the services that are not cost-effective for them to do on their own. Then, the clients still enjoy cost savings, and the MSPs are still necessary because they offer services that are difficult to get elsewhere.

More Than Just Using Multiple Clouds

Research shows when businesses decide to move their assets to the cloud, they often do so by relying on multiple clouds. That's because some cloud providers meet their needs better than others. MSPs could consider adjusting their business models by focusing on the outstanding requirements their customers have.

Even if those entities build their own infrastructures as Dropbox did, it's rare for businesses to figure out how to link the assets contained in their multiple clouds, as well as their on-premise assets. If MSPs think creatively and realize the roles they could play to reduce those disconnects, they could help companies maximize their IT investments.

MSPs Must Make a Critical Shift

Numerous examples indicate that a growing number of large companies are interested in making a shift away from MSPs.

MSPs must stay competitive by gravitating over to the hybrid cloud model and emphasizing that they can still assist customers - but in different ways than before.

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About the Author

Kayla Matthews is a tech-loving blogger who writes and edits ProductivityBytes.com. Follow her on Twitter @productibytes to read all of her latest posts!
Published Monday, September 17, 2018 9:16 AM by David Marshall
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