With record-breaking advancements in technology and the adoption of the cloud, businesses are taking the chance to strategize the management aspects within the organization. However, to manage the cloud optimally, these businesses would require additional help from industry experts. And that’s where cloud-managed service providers bring into play. 

A cloud-managed service provider partially or entirely manages the cloud platforms of associated customers, covering major aspects like migration, maintenance, and optimization of those platforms. 

Nevertheless, choosing the right cloud-managed service providers for effective management of your IT infrastructure and data storage is a demanding process. 

So, to ease your task, we have curated a guide for you to know about the concepts, benefits of hiring CMSPs, common challenges that business owners face while hiring, and key considerations with a few essential practices to help you find the right partner for your business.

What Is Managed Cloud Service?

Managed cloud services involve outsourcing the routine IT management tasks for cloud-based services to automate and streamline business operations. Internal IT teams often lack the expertise needed to effectively monitor and manage cloud environments, prompting companies to enlist third-party cloud-managed service providers. These providers handle various tasks like cloud security, computing, storage, network operations, and application stacks. Additionally, they may offer services such as monitoring, performance testing, backup, and recovery. With a fixed monthly cost, hiring a cloud MSP is usually more cost-effective than maintaining an internal staff dedicated to cloud management.

Also read: A Comprehensive Guide To Salesforce Cloud Types.

What does a Cloud-managed Service Provider do?

A Cloud Service Provider (CSP) is an IT company offering cloud services, typically Infrastructure as a Service (IaaS), Software as a Service (SaaS), or Platform as a Service (PaaS). Utilizing their data centers and compute resources, CSPs host cloud-based infrastructure and platform services for clients. These services are often priced using pay-as-you-go subscription models, where customers are billed only for resources consumed, such as service or platform usage time and storage capacity. 

Today, leading CSPs like Amazon, Microsoft, Google, and Alibaba offer comprehensive cloud service portfolios. Amazon Web Services (AWS) and Microsoft Azure are prominent leaders in cloud computing, known for their extensive offerings and global presence, while Google Cloud Platform (GCP) and Alibaba Cloud follow closely, providing competitive solutions to meet diverse business needs.

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Benefits of Hiring a Managed Cloud Service Provider for Your Business 

1. On-demand Access to Expertise

A Cloud-Managed Services Provider offers access to skilled professionals with specialized expertise, enabling businesses to leverage tailored strategies aligned with broader objectives. These experts provide ongoing guidance, implementing efficient processes to optimize the IT ecosystem, ensuring organizations leverage their full potential for sustained growth and success.

2. Exceptional Cost-savings

Outsourcing cloud-managed services can significantly reduce costly network maintenance expenses. Small to medium-sized businesses with simple networks often find full-time IT staffing unnecessary and expensive. By partnering with a cloud-first managed services provider like Agile IT, you can avoid spending thousands annually on an internal IT department while ensuring efficient network management.

3. Business Agility and Resilience

Partnering with a Cloud-Managed Services Provider enhances business agility and resilience by leveraging their robust network infrastructure and round-the-clock management. They monitor and maintain underlying technology, ensuring compliance with industry standards and regulations. Additionally, they optimize IT systems to align with current trends, enhancing reliability and functionality, thereby enabling businesses to adapt swiftly to changing demands and challenges.

4. Automatic Upgrades and Updates

A Cloud-Managed Services Provider keeps your IT infrastructure current by continuously applying the latest security patches, updates, and system upgrades. This proactive approach ensures your systems are always up to date, minimizing downtime and bolstering server and network security. By investing in your company, the partner ensures ongoing optimization and protection of your IT environment.

5. Disaster recovery and business continuity

The pandemic highlighted the vulnerability of businesses to unexpected disruptions. A Cloud-Managed Services Provider offers resilience against outages, hacking attempts, or server crashes, ensuring uninterrupted operations. Regular cloud data backups safeguard valuable information, sustaining seamless service for employees and customers even during unforeseen events.

6. Regular and recurring monthly expenses

Cloud-managed services offer flexibility in IT spending, allowing you to customize your service level and receive a predictable monthly bill. For instance, a tax preparation firm may require more support during tax season, while a private adult learning school may need peak assistance during evening hours. Tailored monthly service plans help manage IT costs according to your specific needs or budgetary limitations.

7. Integrative and customised services

Managed cloud service providers offer adaptable payment options like pay-per-service or flexible payment plans, enabling businesses to allocate capital towards growth initiatives. Some providers offer convergent solutions, bundling services like network monitoring and security protection, resulting in even more significant cost savings. These comprehensive solutions streamline operations and drive efficiency, maximizing the value of your investment.

8. Strengthened infrastructure

Some cloud MSPs offer robust network infrastructure with 24/7 administration. Through service agreements, providers monitor networks for security vulnerabilities and patch requirements. They also integrate corporate policies into network management to align with company objectives, ensuring a seamless and secure operational environment.

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9. Availability across all service levels

Cloud service providers ensure consistent availability across all service levels, offering enhanced control over performance and maintenance. Through comprehensive service-level agreements, businesses gain service continuity. These MSPs develop deep familiarity with your network over time, leading to faster issue response times and improved operational efficiency.

10. Seamless vendor relations

Modern Cloud MSPs maintain strong relationships with IT vendors, ensuring swift resolution of vendor-specific service issues. Your provider acts as a liaison, communicating with third-party vendors, addressing technical queries, and facilitating timely resolutions. Additionally, they assist in implementing changes, allowing you to concentrate on business growth while ensuring seamless IT operations.

Things To Consider When Hiring a Cloud-Managed Service Provider

1. Security and Compliance

Ensuring robust data security in the public cloud involves vetting managed service providers (MSPs) for strong security protocols and privacy policies. Essential measures include encryption, access control, and proactive threat monitoring. Compliance with standards such as ISO 27018, ISO 27001, GDPR, HIPAA, and industry-specific regulations is vital. Alignment with organizational security needs and active certifications assures sticking to stringent data protection and privacy requirements.

2. Scalability and Performance

Scalability in the cloud is crucial, necessitating a provider capable of flexibly expanding resources to accommodate traffic surges. Effective resource deployment ensures optimal utilization for cost efficiency. A seasoned Cloud-Managed Service Provider (CMSP) offers insights for efficient infrastructure use and enhanced throughput, ensuring smooth scalability aligned with business needs.

3. Support and Communication

Clear communication and reliable support are vital for a fruitful partnership with your MSP. Ensure they offer 24/7 availability, prompt response times, and accessible support channels. Assess their change management approach, regular maintenance schedule, and how they handle service disruptions. Establishing a Single Point of Contact (SPOC) fosters effective collaboration between your business and the MSP, facilitating timely issue resolution and seamless teamwork.

4. Budget and Pricing 

A clear budget is essential when considering a partnership with a cloud MSP, as it aligns with the core objective of optimizing costs. Assess the pricing model—whether subscription-based or pay-as-you-go—to determine its suitability. Evaluate additional benefits such as bandwidth, storage, maintenance, extended subscriptions, and technical reports to ensure they align with your business needs and offer value for investment in managed services.

5. Data Migration and Portability

A robust migration strategy is crucial to ensure seamless transitions and prevent disruptions or data loss. Evaluate potential cloud providers based on their data migration capabilities and portability features. Consider factors such as ease of data access, level of control over data, and flexibility in transferring applications if switching providers becomes necessary. This assessment aids in making informed decisions and mitigating risks associated with data management and portability.

6. Customization 

Every business has distinct cloud needs, demanding personalized solutions from their managed service provider (MSP). Opting for a provider like DianApps that offers tailored services instead of a generic approach ensures alignment with your specific requirements. As businesses increasingly prioritize robust cloud infrastructure, selecting the right MSP becomes pivotal for competitiveness. Thoroughly evaluating these factors facilitates choosing an MSP capable of meeting current project needs and supporting future growth initiatives effectively.

Recommended reading: Salesforce Sales Cloud Pricing & Features

Challenges Hiring a Cloud-Managed Service Provider

1. Performance Can Vary

Cloud service providers often make performance and outcome promises, but actual delivery can vary. Without caution, you risk selecting a provider that fails to meet expectations and fulfill your business requirements.

2. Cybersecurity Threats

Cloud computing can expand the threat surface for cyber attacks, extending beyond a business’s boundaries. However, selecting a trustworthy cloud service provider and actively participating in shared responsibility, particularly regarding access and identity-proof authentication, can enhance your business’s security. This approach ensures collaborative efforts in safeguarding data and mitigating potential risks associated with cloud adoption.

3. Lack of Technology Compatibility

Incorporating advanced technologies is crucial for maintaining competitiveness, yet not all cloud providers may align with a business’s existing technologies. Ensuring compatibility between the provider’s services and the business’s current technologies poses a significant challenge. This necessitates thorough assessment to ensure seamless integration and optimal utilization of cloud services within the existing technological framework.

4. Lack of Support

As IT infrastructure complexity, security threats, regulatory demands, customer expectations, and IT talent shortages increase, businesses encounter challenges in obtaining adequate support from MSPs. Consequently, certain cloud providers may require additional documentation or support personnel to assist businesses in navigating their services effectively and addressing evolving needs.

Best Practices to Hire A Cloud-Managed Service Provider

1. Define your requirements

Defining project goals initiates the process of selecting the ideal managed cloud provider. Identify business objectives, challenges, and desired outcomes, pinpointing areas requiring support like cost optimization, cloud migration, security enhancements, or ongoing maintenance. This clarity enables hiring a provider aligned with your objectives, ensuring they offer tailored solutions to address specific project needs effectively.

2. Check Online Platforms

Leveraging online platforms like TopDevelopers, Clutch, and GoodFirms facilitates finding a reliable cloud partner. These platforms curate lists of top Cloud-Managed Service Providers (CMSPs) globally, offering valuable insights and ratings from clients. Their widespread recognition enhances credibility, making them valuable resources for businesses seeking trusted MSPs.

3. Look for Referrals

Seeking referrals from friends, family, and colleagues who have utilized managed services in the past is a valuable approach. Their firsthand experiences and recommendations can help identify trusted MSPs for your business needs.

4. Evaluate Experience and Expertise

Prioritize cloud-managed service providers with expertise in cloud platforms like AWS, Azure, etc., and a deep understanding of your industry’s regulations. Opt for an MSP with a demonstrated history of effectively managing cloud environments and a dedication to building enduring partnerships.

5. View the Portfolio

Reviewing a cloud management service provider’s portfolio is a crucial best practice when selecting the right partner. It showcases their expertise, quality of work, and capability to address your project requirements effectively. A strong portfolio indicates the MSP’s experience in managing diverse cloud environments and delivering exceptional results across different industries, inspiring them to meet your business needs.

Questions to Ask Your Cloud-Managed Service Provider

1. Do you offer consistent global service delivery, with the option for local resources when needed? 

Selecting a global managed services provider offers significant advantages for companies of all sizes in today’s economy. It enables swift establishment in new locations, efficient management of multi-country projects, provision of local language support for branches or subsidiaries, and adherence to regulatory requirements by keeping resources and data within respective countries. Evaluating providers involves assessing uniformity in processes across locations and the effectiveness of collaboration and communication among teams worldwide.

2. What additional benefits or value-added services are included in this offering?

Assess whether the service provider adopts a reactive “fix-as-it-breaks” approach or a proactive strategy aimed at preventing issues and making continuous improvements. Look for providers leveraging advanced technologies such as smart analytics to anticipate and address potential failures. Features like smart alert systems, automated issue handling, and prioritization of work can enhance efficiency and provide valuable insights for both the customer and the service provider to optimize performance and minimize disruptions.

3. Are you equipped to support multi-vendor, multi-cloud environments and cultivate robust partnerships?

Modern IT environments consist of a blend of traditional hardware and software alongside multiple public and private cloud services. A competent service provider must possess extensive experience in managing diverse technologies and cloud platforms from various vendors. Moreover, fostering strong relationships with top vendors enables access to product insights and emerging technologies, facilitating informed decision-making and effective management across different cloud models to optimize business operations.

3. What is your team structure?

Inquire about the managed cloud service provider’s team structure, including the number of cloud experts assigned to the project, their experience, and the technology stack they utilize. Understanding these aspects provides insight into the provider’s proficiency in managing your cloud needs and ensures alignment with your project requirements.

4. Do you offer regular updates and maintenance services?

Before finalizing a contract, inquire if the managed cloud provider handles regular updates and maintenance to ensure your IT infrastructure stays aligned with industry standards. A reliable provider will conduct consistent assessments and oversee system operations, promptly addressing any software vulnerabilities through timely maintenance checks. This proactive approach guarantees that your infrastructure remains secure and up-to-date, minimizing risks associated with outdated software. 

5. What is your offboarding process?

Ask about the managed cloud solution provider’s offboarding process, a critical yet often overlooked aspect. As business needs evolve, it’s essential to ensure the provider can adapt to meet changing requirements. A transparent exit strategy signifies an honest agreement, preventing you from becoming trapped with a provider unable to fulfill evolving needs.

6. Do you provide a service-level agreement (SLA)?

Managed services relieve businesses of performance concerns by shifting focus from service execution to outcomes delivered by the provider. This incentivizes the provider to innovate, improve service delivery, and reduce costs. In return, the provider commits to meeting service-level requirements, backed by financial penalties or consequences for SLA breaches. This mutual agreement ensures accountability, fosters continuous improvement and strengthens the partnership between the business and the service provider.

Conclusion

Selecting a cloud provider is a multifaceted process, involving several critical steps. It begins with understanding your business’s unique needs and thoroughly evaluating offerings from providers like AWS, Azure, and Google Cloud, among others. Prioritizing security and scalability, assessing support quality, comprehending cost structures, and reviewing client references and portfolios are crucial considerations. Compatibility with your current technology stack is essential. Additionally, ensure the chosen provider can offer 24-hour technical support, serving as a reliable companion throughout your data center journey. Before finalizing the decision, it’s imperative to have a clear understanding of the goals you aim to achieve through collaboration with the cloud-managed service provider.

Contact our experts at DianApps to learn more about our managed cloud and other services.