MSPs must embrace the cloud

Thursday, April 28, 2011

As it becomes increasingly evident that cloud computing is here to stay, a recent DatacenterDynamics report asserted that managed service providers ought to shift their focus from traditional to cloud-based IT solutions.

The report acknowledged that traditional services are still very much a part of enterprise IT and represent the bulk of MSP revenue. However, cloud computing adoption is growing rapidly among businesses of all sizes, and shifting services sooner rather than later would help MSPs gain a competitive advantage.

According to Managed Service Provider University vice president and CIO Erick Simpson, many MSPs may be hesitant to embrace the cloud because they "do not yet fully understand how to price and position cloud services effectively." Particularly in the face of giant companies offering cloud services, such as Google and Microsoft, smaller MSPs may feel they are unable to compete in the cloud market.

"They [service providers] feel that there is less opportunity for them to participate in service delivery and maintenance of those client services," Simpson said.

Regardless if MSPs are on board, the cloud market is growing at a rapid pace. According to a recent Forrester report, the cloud market will reach $241 billion by 2020.