Funnel overlay image

Blog | 5-minute Read

How well is your MSP keeping control of cloud spending?

Andy Brown

Product Director

Published: 07 May 2024

As cloud costs and consumption continue to rise, managing spend is vital for keeping IT budgets under control. But how proactive is your MSP when it comes to cloud cost optimisation?

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 Traditional capital expenditure (CAPEX) superseded by operational expenditure (OPEX) models.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.

The ultimate guide to Microsoft security **New for 2024**

Cut through the complexity. Master Microsoft security.

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:

Ebony coins on transparent background

Identify waste and opportunities to save

Cloud environments can accumulate redundancies over time, leading to wasted resources and unnecessary expenses.

A modern MSP actively audits your cloud setup, identifying overlapping services and eliminating inefficiencies. They pinpoint gaps in your architecture, and recommend cost-effective solutions to optimise your cloud footprint.

Ebony and green 'OK,' hand gesture icon on transparent background

Right size cloud resources

The beauty of the cloud lies in its pay-as-you-go model.

But are you using the right amount of resources?

Your MSP should have the tools to analyse your cloud consumption, identifying areas where you might be over-provisioned. This enables them to recommend scaling resources up or down based on usage patterns, ensuring optimal performance without incurring unnecessary costs.

Ebony and green calculator icon on transparent background

Decoding complex billing

It’s no secret that cloud bills are complex, often making cost analysis hard to undertake. Yes, you have may have access to some of the free tools cloud providers offer, but invariably they lack the granularity needed.

With an MSP offering expertise in cloud management, you’re likely to have access to tools to better break down your bills. Giving you a clear picture of where your money is being spent and enabling you to adjust for more accurate and optimised spending.

Ebony and green unlocked padlock icon on transparent icon

Unlocking cost saving opportunities

Cloud providers offer significant discounts through a variety of benefits and incentives.

But choosing the right plan means careful analysis of your predictable workloads.

By deploying the tools to analyse cloud usage, your MSP should be able to identify the right plans that align to your needs and circumstances. Built into your ongoing cost optimisation strategy, this can often lead to big long-term cost reductions.

Ebony and green ticked presentation board icon on transparent background

Improved forecasting for long-term cost-efficiency

Having an MSP on top of your cloud consumption and delivering real-time visibility isn’t just about saving for the now.

It’s about working with a partner who shares your vision for long-term cost-efficiency. Providing the tools to deliver granular data analysis. Helping, advising, and identifying the trends, anomalies, and behaviours that drives smart, accurate forecasting and resource allocation.

A partner who can enable data-driven investment decisions and greater agility to adapt to changing industry conditions.

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

  • The shift to cloud computing has transformed MSPs into strategic partners, focusing on complex cloud, multi-cloud, and hybrid environments.

  • An effective MSP identifies waste, optimises resource allocation, and ensures value by actively managing cloud consumption and spending.

  • Access to advanced tools enables MSPs to provide a clear breakdown of cloud costs, helping organisations adjust for more accurate and optimised spending.

  • Real-time data and trend analysis by MSPs facilitate accurate budgeting and long-term cost-efficiency, enabling data-driven decisions and agility.

The ultimate guide to Microsoft security **New for 2024**

Grab your Microsoft security ‘cheat sheets’. Discover how to:

  • Simplify security across your multi-cloud estate
  • Easily protect identities, devices, and data
tag icon

Great emails start here

Sign up for free resources and exclusive invites

Subscribe to the Kocho mailing list if you want:

  • Demos of the latest Microsoft tech
  • Invites to exclusive events and webinars
  • Resources that make your job easier
Butterfly overlay image

Author

Andy Brown

Product Director

Former Head of Global Mobile Engineering at HSBC, Andy is incredibly enthusiastic about all of Kocho’s tech solutions – and the problems they can solve for our clients.

Butterfly overlay image

Got a question? Need more information?

Our expert team is here to help.