Study says 92% of businesses will maintain or grow the amount of money spent on cloud managed services
MSPs are becoming increasingly crucial to enterprises that are migrating mission-critical applications to multicloud environments, according to a recent study by Virtustream, a cloud company owned by Dell Technologies.
The Lowdown: In a report last year conducted by Forrester Research, Virtustream found that organizations were becoming more comfortable using mulitcloud strategies for mission-critical workloads and sensitive data, an indication of the cloud’s growing importance in enterprises’ digital transformation efforts.
The Details: What the latest study – also conducted by Forrester – shows is that cloud MSPs are helping companies more quickly realize the benefits of multicloud environments, from improved performance and greater flexibility to operation and cost efficiencies.
According to the report, titled “Expert Managed Services Accelerate Benefits of Multicloud,” using MSPs in multicloud strategies can help enterprises by enabling internal teams to spend more time on high-priority projects, delivering faster times to value and market, and avoiding having to spend money and time finding and retaining skilled staff for the cloud.
The findings in the report include:
> 75% of respondents said they use between two and four cloud providers for mission-critical applications.
> More than 80% have deployed such applications in multicloud environments.
> 42% of IT decision-makers in North America and Europe said that adopting cloud managed services are a high or critical priority for them this year.
> 99% of managed service users say their MSPs have benefited their businesses.
> 92% plan to increase (55%) or maintain (37%) the amount they’re spending on managed services over the next two years.
The Impact: The cloud will continue to be a significant opportunity for MSPs and other channel partners. It has always been a key part of larger digital transformation efforts and the COVID-19 pandemic has only accelerated enterprises’ migration to the cloud. A report from MarketsandMarkets is forecasting that the global cloud managed service market, which will reach $62.4 billion this year, will grow 13.3% a year through 2025, when it will hit $116.2 billion. Vendors in the space in the coming years will focus on such advanced technologies as artificial intelligence (AI), machine learning, and analytics to differentiate themselves from competitors, according to the report.
Background: In the early days of the cloud, enterprises, concerned about security, privacy, and compliance, were most comfortable migrating smaller, less crucial applications. Virtustream was launched more than a decade ago with the goal of hosting the most complex and mission-critical workloads. The company last year found that almost 70% of its business involved hosting SAP applications for customers.
The Buzz: “With the industry’s broad acknowledgment that multicloud can provide a wide range of advantages – including better flexibility, performance, and operational efficiencies – the focus for most IT leaders has now shifted to understanding how best to maximize and accelerate those multicloud benefits,” Nina Hargus. senior vice president, chief marketing officer, and head of strategy for Virtustream, wrote in a blog post. “According to the study, one factor can make a big impact: expert managed services. Organizations can utilize cloud managed service providers (MSPs) to accelerate the full realization of benefits associated with multicloud configurations.”
“Managed services help these firms coordinate and integrate cloud environments with traditional IT infrastructure, provide access to cloud management and/or cost optimization technology, and provide access to skills and expertise that organizations would otherwise struggle to obtain and retain themselves,” Forrester analysts wrote in the report.