How well is your MSP keeping control of cloud spending?

Keep the lights on and the engine running.

That’s the traditional role of the managed service provider (MSP) isn’t it? A dependable partner offering a cost-effective way to ensure the smooth running of your IT estate.

But as organisations increasingly embrace cloud-based solutions and shift away from their legacy systems, is that enough?

Increasingly, cloud computing has become the predominant expense in an organisation’s IT budget. Something that’s prompted a change in what’s needed from their MSP.

In this article, we’ll explore why this changes the relationship between client and MSP.

Why it’s driving MSPs to become strategic partners able to secure and support increasingly complex cloud, multi-cloud, and hybrid environments.

A partner with the tools and know-how to actively monitor cloud usage and spend. While proactively driving cost-efficiency across the organisation.

Cloud consumption is evolving the client-MSP relationship

Cloud adoption has effected a substantial change in the way organisations pay and budget for their IT resources.

Legacy spending on systems and hardware is increasingly replaced by investment in cloud-based ‘as-as-a-service’ solutions. Traditional capital expenditure (CAPEX) superseded by operational expenditure (OPEX) models.

Payment models based on consumption. The more you use the more you pay.

It all adds up to a significant financial outlay.

And, of course, business leaders need to maximise value and return on that investment.

But the cloud can be a complex arena.

Unmanaged sprawl, inefficient resource allocation, and a lack of visibility into spending leads to waste and potentially mammoth cost overruns.

So how does this shape the relationships between client and MSP?

Well, that really depends on the MSP and the level of expertise they bring to cloud cost optimisation.

Do they go beyond simply managing your cloud infrastructure? Are they actively monitoring cloud spend to ensure you’re getting the most value out of your investment? Have they got visibility over who is using what, or where licences have lapsed or gone dormant?

This is what we mean about a strategic partnership. It’s about working with a partner that’s focused on gaining maximum value out of every pound you spend in the cloud.

Using your MSP to monitor, manage, and optimise cloud costs

Think of the different people accessing cloud resources in your organisation. Across multiple teams, different applications, and for varying reasons. It’s easy to lose track and let cloud costs spiral.

When an estimated 30% of cloud spend comes from waste, that’s a hefty amount of money going down the drain.

Now consider an MSP that was focused in not only eliminating that waste, but ensuring future usage was fully optimised. Managing spend, but also unlocking the full potential of your cloud investment.

It’s the combination of monitoring usage, managing resources, and identifying opportunities to save.

But deeper than that, the right MSP will leverage tools and technology like AI and machine learning to analyse data, behaviour, and trends. Providing the detail needed for more accurate forecasting and budgeting.

A partner who can:

Conclusion

It makes sense for organisations to turn to the services of MSPs to deliver expert management of their complex cloud environments.

After all, investing in the cloud is essential to long term sustainability and success. For an infrastructure to run smoothly and consistently, therefore, you need the right partners with the right skills and resources.

But as consumption increases so does your cloud expenditure.

If you haven’t got a grip or full visibility over what, where, and how much is being used then you risk serious overspending. Undermining your investment and undoing the savings the technology was implemented to deliver.

This is why the relationship between you and your MSP should have another layer that your bottom-line can’t ignore.

A relationship that goes beyond simply managing your cloud infrastructure. The modern MSP should be your strategic partner who knows the fundamental importance of keeping cloud investment optimised.

Who can leverage the right tools and expertise to proactively monitor and optimise consumption. Who helps you minimise waste, improve forecasting, and unlock cost-saving opportunities that continually drives up the return on your cloud investment.

Key takeaways

Next steps

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