Businesses increasingly turn to cloud managed services to stay ahead of the competition. By 2028, the global cloud services market is expected to reach a staggering $1266.4 billion, driven by businesses seeking more efficient, scalable, and secure IT solutions.
But what makes cloud-managed services such a valuable asset?
They optimize your IT infrastructure and deliver significant cost savings, better security, and seamless scalability.
In this blog, we’ll explore the key benefits of cloud-managed services and how they can transform your IT operations, boosting efficiency and accelerating your business’s growth.
What are Cloud Managed Services?
Cloud managed services refer to the outsourced management of a company’s cloud-based infrastructure and applications. These services are provided by third-party vendors who handle cloud environments’ setup, monitoring, maintenance, security, and troubleshooting. The goal is to ensure optimal performance, security, and scalability of cloud resources without the company needing to manage them in-house.
Cloud-managed services offer businesses peace of mind, allowing them to focus on their core operations while the service provider ensures the technical side runs smoothly.
Now, let’s take a look at various managed cloud services available today.
Types of Managed Cloud Services
There are several types of managed cloud services, each designed to meet specific business needs and provide different levels of support for cloud environments. Here are the most common types:
1. Cloud Infrastructure Management
This service involves the management of the cloud infrastructure, including virtual machines, storage, and networks. It ensures that cloud resources are properly allocated, optimized, and secured.
Key Features:
- Server provisioning and scaling
- Network management
- Load balancing
- Disaster recovery and backups
2. Cloud Security Management
This service focuses on securing a business’s cloud environment, protecting data and applications from cyber threats, and ensuring compliance with regulations.
Key Features:
- Identity and access management (IAM)
- Data encryption and firewall protection
- Threat detection and response
- Compliance management (e.g., GDPR, HIPAA)
3. Cloud Application Management
Involves managing and supporting applications hosted on the cloud, ensuring they are up-to-date, secure, and optimized for performance.
Key Features:
- Software updates and patches
- Application monitoring and performance optimization
- User support and troubleshooting
- Integration with other cloud or on-premises systems
4. Cloud Backup and Disaster Recovery
Ensures business continuity by managing cloud-based backup systems and providing disaster recovery solutions in case of data loss or system failure.
Key Features:
- Automated backups
- Data restoration and recovery
- Business continuity planning
- Replication of data across multiple regions
5. Cloud Migration Services
Managed services that assist in moving existing applications, data, and infrastructure from on-premises environments to the cloud.
Key Features:
- Assessment and planning for migration
- Execution of data migration
- Minimizing downtime during migration
- Post-migration support and optimization
6. Cloud Monitoring and Performance Management
This service ensures the ongoing performance of cloud environments by providing monitoring tools, alerts, and proactive optimization.
Key Features:
- Real-time monitoring of cloud resources
- Performance metrics and analytics
- Resource allocation recommendations
- Problem detection and resolution
7. Managed Cloud Hosting
This service manages cloud hosting environments, providing businesses with scalable and secure hosting solutions.
Key Features:
- Managed virtual servers or dedicated cloud instances
- Server monitoring, updates, and optimization
- Load balancing and auto-scaling
- Security management and compliance
8. Cloud Cost Management and Optimization
Focuses on managing and optimizing cloud spending by ensuring efficient use of resources, avoiding waste, and making cost-effective decisions.
Key Features:
- Cost tracking and reporting
- Budget setting and alerts
- Resource optimization recommendations
- Scaling down unused resources
9. Cloud DevOps Services
Managed services that support implementing DevOps practices in the cloud, helping businesses automate their software development and deployment workflows.
Key Features:
- Continuous integration and delivery (CI/CD)
- Infrastructure as code (IaC)
- Automation of testing and deployment
- Collaboration between development and operations teams
Each type of managed cloud service is tailored to different business needs, helping organizations enhance performance, security, scalability, and efficiency while reducing the burden on internal IT teams.
Also read: AWS Cloud Readiness Assessment: A Quick Guide
Now that we’ve covered the various types of managed cloud services, let’s discuss why they’re beneficial and how they can transform your business operations.
Core Benefits of Cloud Managed Services
Cloud managed services offer several core benefits that can significantly enhance a business’s cloud infrastructure, operations, and overall performance. Here are the key advantages:
1. Expertise and Knowledge
Cloud-managed services provide access to skilled professionals with in-depth knowledge of cloud technologies, security, and best practices. This optimizes and secures your cloud infrastructure without requiring internal expertise.
2. Cost Efficiency
Managed cloud services can help optimize cloud resource usage, avoiding unnecessary provisioning and reducing operational costs. They also assist in planning budgets and tracking expenses more accurately.
3. Scalability and Flexibility
Cloud-managed services enable businesses to scale their infrastructure easily, adapting to changing demands without manual intervention or over-provisioning. Whether growing your team, increasing storage, or adding new applications, managed services ensure your infrastructure scales seamlessly with your business.
4. Enhanced Security and Compliance
Security is a top concern in cloud environments. Managed service providers implement stringent security protocols, including data encryption, firewalls, and continuous monitoring. This helps businesses comply with industry regulations (such as GDPR, HIPAA, etc.).
5. 24/7 Monitoring and Support
Managed cloud services offer round-the-clock monitoring and support, ensuring any potential issues are detected and resolved quickly before they impact business operations.
6. Improved Performance and Reliability
Providers continuously monitor the health of your cloud environment, ensuring that it operates at peak performance levels. They can also optimize workloads and allocate resources to prevent performance bottlenecks.
7. Disaster Recovery and Backup
Managed cloud services include automated backups and disaster recovery plans, ensuring data is regularly backed up and can be restored quickly during system failures or disasters.
8. Simplified IT Management
By outsourcing the management of your cloud infrastructure, you can free up internal IT resources. This allows them to focus on more strategic initiatives, such as innovation and growth.
9. Proactive Problem Solving
Managed service providers often use monitoring tools and predictive analytics to identify potential issues before they become major problems, allowing for proactive resolution. By addressing issues early, you can prevent costly downtime and disruptions that could negatively impact your business operations.
10. Focus on Core Business Goals
With managed services handling your cloud infrastructure, you can dedicate more time and resources to core business functions such as
- Product development
- Customer service
- Market expansion
Why It Matters: Offloading technical operations management allows you to remain agile, stay competitive, and invest in business areas that drive growth.
When Should I Use a Managed Cloud Service?
You should consider using a managed cloud service when your business faces specific challenges or goals related to cloud management. Here are some scenarios where opting for a managed cloud service makes sense:
1. Lack of In-House Expertise
- Why: If your business lacks the specialized technical knowledge to manage and maintain a cloud infrastructure effectively, a managed cloud service can provide the expertise needed.
- When: If your team is unfamiliar with cloud technologies, security best practices, or cloud infrastructure management.
2. Focus on Core Business Activities
- Why: If you want to focus on your core competencies (like product development, customer service, etc.) and leave cloud management to experts, a managed service is a great option.
- When: When managing cloud infrastructure, security, or backup is diverting your attention from your main business objectives.
3. Scalability Needs
- Why: If you expect significant growth or fluctuating resource demands, managed services can help you scale resources dynamically, ensuring optimal performance and cost-efficiency.
- When: If your business is growing rapidly and you anticipate needing to scale your cloud resources quickly and efficiently without extra overhead.
4. Security and Compliance Concerns
- Why: By implementing best practices and continuous monitoring, managed services can help ensure that your cloud environment is secure and compliant with necessary regulations (GDPR, HIPAA, etc.).
- When: If you’re handling sensitive data or must comply with strict regulations but lack the in-house resources to ensure proper security and compliance.
5. Cost Optimization
- Why: If you’re concerned about cloud costs, managed services help you optimize spending by preventing over-provisioning, streamlining resources, and ensuring the most cost-effective cloud usage.
- When: If you’ve noticed high or unpredictable cloud costs that you can’t easily manage or forecast.
6. Disaster Recovery and Business Continuity
- Why: A managed service provider can ensure you have proper backup and disaster recovery systems in place to safeguard your data and minimize downtime in case of failure.
- When: If your business is critical, and any downtime or data loss could lead to significant financial or operational losses.
7. Outdated Infrastructure or Legacy Systems
- Why: If your company is transitioning from legacy IT systems to the cloud, managed cloud services can facilitate a smooth migration and ensure everything runs optimally in the new environment.
- When: If you are moving to the cloud and need expert guidance in handling legacy systems during the transition.
8. Limited IT Resources
- Why: If your internal IT team is small or overloaded with other tasks, outsourcing cloud management to a third party can free them up for more strategic initiatives.
- When: If your IT team lacks the bandwidth or capacity to manage cloud infrastructure effectively, you need more hands-on support.
9. Need for Continuous Monitoring and Performance Optimization
- Why: Managed services provide ongoing monitoring and performance optimization to ensure your cloud infrastructure runs at its best and that any potential issues are caught early.
- When: If you’re experiencing performance issues with your cloud services or want to ensure everything runs smoothly with minimal manual intervention.
Opting for a managed cloud service can offer operational efficiency, enhance security, ensure scalability, and provide valuable support.
Also read: The Essential Checklist for Evaluating Technology Partners
What is a Managed Cloud Service Provider?
A managed cloud service provider (MCSP) is a third-party company that manages cloud infrastructure, services, and applications on behalf of businesses. MCSPs handle cloud deployment, monitoring, security, optimization, and support tasks, allowing businesses to focus on their core operations without needing in-house cloud expertise.
Key Services Provided by MCSPs
Here are the key services offered by MCSps:
- Cloud Infrastructure Management: Handling server provisioning, storage, and networking.
- Security & Compliance: Ensuring data protection, threat detection, and regulatory compliance.
- Performance Optimisation: Monitoring workloads, automating scaling, and improving efficiency.
- Backup & Disaster Recovery: Implementing backup solutions and recovery strategies.
- 24/7 Support & Troubleshooting: Offering technical assistance and proactive maintenance.
Examples of Managed Cloud Service Providers
Here are five well-known managed cloud service providers known for their expertise in cloud management, security, and optimization:
1. CrossAsyst
CrossAsyst offers a comprehensive suite of cloud-managed services that can significantly enhance your cloud infrastructure, operations, and overall performance.
Key Services:
- Cloud migration and deployment strategies.
- Security and compliance solutions for regulated industries.
- AI-powered automation for cloud operations.
- Cost optimization and performance tuning.
2. Rackspace Technology
Rackspace is a global leader in multi-cloud solutions, and it provides managed cloud services across AWS, Microsoft Azure, and Google Cloud.
Key Services:
- 24/7 cloud monitoring and support.
- Security and compliance management.
- Hybrid and multi-cloud strategy development.
- Performance optimization and cost efficiency solutions.
3. IBM Cloud Managed Services
IBM offers enterprise-grade cloud management with AI-driven automation, catering to businesses with complex IT environments.
Key Services:
- Hybrid and multi-cloud management.
- AI-powered automation for cloud operations.
- Disaster recovery and backup solutions.
- Compliance and security for highly regulated industries.
4. Accenture Cloud First
Accenture Cloud First focuses on cloud strategy, migration, and management, leveraging AI and analytics for business transformation.
Key Services:
- Cloud migration and modernization.
- AI-driven automation and analytics.
- Industry-specific cloud solutions.
- Cost management and performance optimization.
5. Deloitte Cloud Managed Services
Deloitte offers comprehensive cloud management solutions, helping enterprises scale, secure, and optimize their cloud environments.
Key Services:
- End-to-end cloud transformation services.
- Security and risk management.
- AI-driven cloud monitoring and automation.
- Multi-cloud and hybrid cloud optimization.
These MCSPs help businesses streamline cloud operations, enhance security, and improve efficiency by leveraging advanced technologies and industry expertise.
Also read: All You Need to Know About EKS (AWS Elastic Kubernetes Service)
Considerations for Choosing a Provider
When choosing a cloud managed service provider, evaluating several key factors is essential to ensure the provider aligns with your business needs, goals, and technical requirements. Here are the most important considerations:
1. Expertise and Experience
- Look for providers with a proven track record in managing cloud environments relevant to your business.
- Experienced providers understand industry-specific challenges and offer tailored solutions.
2. Security and Compliance
- Ensure the provider has strong security measures (data encryption, firewalls, etc.) and complies with regulations (e.g., GDPR, HIPAA).
- Prioritize security to protect sensitive data and avoid regulatory fines.
3. Service Level Agreements (SLAs)
- Review SLAs for response times, uptime guarantees, and support scope (24/7 availability, on-site assistance).
- Strong SLAs set clear expectations for service reliability and responsiveness.
4. Scalability and Flexibility
- The provider should offer scalable resources and flexible plans that grow with your business.
- Ensure the provider can handle fluctuating demand and changing business needs.
5. Cost Structure and Transparency
- Evaluate the pricing model (e.g., pay-as-you-go, subscription-based) and cost optimization recommendations.
- Ensure clear, predictable pricing to avoid unexpected costs and maintain budget control.
6. Performance and Reliability
- Check the provider’s performance history, uptime rates, and redundancy features.
- Reliable performance ensures minimal downtime and consistent service availability.
7. Support and Customer Service
- Assess the provider’s support offerings, including the availability of dedicated account managers and customer service.
- Excellent support ensures quick issue resolution and smooth operation.
8. Cloud Integration and Compatibility
- Verify that the provider’s services integrate well with your existing tools and workflows.
- Smooth integration reduces complexity and ensures seamless cloud adoption.
9. Backup and Disaster Recovery
- Confirm the provider offers robust disaster recovery and backup solutions, including regular and rapid backups.
- A solid disaster recovery plan ensures data protection and business continuity.
10. Customization and Tailored Solutions
- Ensure the provider can offer solutions tailored to your business needs.
- Customization ensures your cloud environment is optimally configured for your specific requirements.
Considering these factors, you can choose a cloud-managed service provider that aligns with your business needs and optimizes your cloud infrastructure.
We shall now look at some of the associated risks and challenges and how you can avoid them.
Risks and Challenges of Using a Managed Cloud Service Provider
While managed cloud service providers offer numerous benefits, businesses must consider potential risks and challenges before outsourcing their cloud management.
1. Vendor Lock-in
Relying on a single MCSP may limit flexibility, making switching providers or migrating to a different cloud platform difficult. Businesses should ensure multi-cloud compatibility and negotiate exit strategies in service agreements.
2. Security & Compliance Risks
Although MCSPs offer security solutions, data breaches, misconfigurations, and third-party risks can still occur. Businesses must ensure the MCSP follows strict compliance standards (e.g., GDPR, HIPAA) and implements strong access controls.
3. Limited Customisation & Control
Some MCSPs offer standardized solutions that may not align with a company’s unique requirements. Organizations should ensure customization options are available and that they retain control over critical operations.
4. Hidden Costs & Pricing Complexity
MCSP pricing can include hidden fees for services like additional storage, bandwidth, or premium support. Companies should review pricing structures carefully and use cost management tools to avoid overspending.
5. Service Reliability & Downtime Risks
Dependence on an MCSP means businesses risk downtime if the provider experiences outages. SLAs (Service Level Agreements) should include guaranteed uptime commitments and penalties for service failures.
Choosing an MCSP requires carefully evaluating risks and proactive contract negotiation to ensure security, flexibility, and cost efficiency.
Conclusion
Managing a cloud environment requires more than just basic oversight; it demands deep technical expertise and strategic planning. By partnering with experienced cloud service providers, especially those well-versed in platforms like AWS, you can access scalable infrastructure, enhanced security, and cost-efficient operations tailored to your business needs.
That’s where CrossAsyst comes in. Our team delivers tailored AWS solutions, from seamless cloud migration and automated backups to infrastructure monitoring and real-time cost optimisation. If you’re launching a new cloud-native application or modernising legacy systems, we help you harness the full power of AWS while keeping performance high and costs low.
Get in touch with us today to get started!