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Key Benefits of Cloud-based Managed Services

1 Jul, 2015 By: Eric Stavola, MSCIS,MCSE,MCSA,N+,CDIA+

Cloud computing continues to soar. It is estimated that the current $100 billion dollar cloud computing market will nearly triple by the year 2020.

Ever since 2008, there is a constant need for businesses to do more with less. Over the years, I have seen many companies look to streamline all aspects of their business in effort to increase their bottom line profits.  Today many companies have turn to their technology infrastructure to help drive their core business initiatives. Yet, with the ever growing popularity of “Cloud Computing” it’s not only the technology at issue but how a company leverages, implements and uses a basic overall cloud strategy with their business that is becoming a key differentiator in our competitive marketplace.

According to Market Research Media, the global Cloud Computing market is expected to grow at a 30% CAGR, reaching $270 billion in 2020.

Why Such Growth & Interest

The cloud has changed the way businesses purchase and utilize technology.  The term “cloud” as it refers to computing is simply the practice of using a network of remote servers hosted on the Internet (Data Centers) to store, manage, and process data, rather than a local server or a personal computer. At its core, the term “as a service“ is key to understanding the power and scope of cloud computing.

The Cloud Computing Stack

•         Software as a Service (SaaS): applications are designed for end-users, can be Access via the Web to centrally located software and applications.

•         Platform as a Service (PaaS): is the set of tools and services designed to make coding and deploying applications quick and efficient, can integrates Web services with databases of information.

•         Infrastructure as a Service (IaaS): the hardware and software that powers it all – servers, storage, networks, operating systems. Implementation has a variable-cost, utility-based pricing model.

What SMB Owners & Execs Need to Know

What the cloud has done has made technology, including device use and IT services, more of a business decision than ever. For years, I have seen SMB owners held hostage by their IT department, or “local IT guy” who has little to no business savvy let alone communication skills to credibly assist a company to leverage and implement a real technology plan. Now, more businesses are realizing that cloud-based managed services can save them money in the long run by eliminating capital expenditures and making it easier to control operating expenses, while providing long-term strategies.

Other Key Benefits of Cloud-based Managed Services:

•         Leverages IT as a strategic asset

•         Fixed-cost model which changes only if one increases or decreases head count

•         Allows better management of risk and ensure business continuity

•         Frees up IT personnel to work on strategic initiatives

With all the advantages and opportunities that the cloud is bringing to business, it’s not a matter of if a company should make the transition but when.  Still, I do see a lot of companies hesitant to make the transition or even start the planning process. The main reason, in my opinion, is due to lack of trust with their current provider or lack of knowledge due to the inundation of marketing and data that’s outmoded today.

With all the opportunities available, there are good companies scrambling to take advantage of the need. Prior to making any decision, be sure to do your research and find the right company for you.

Key Concepts to Grasp

•         Start with a plan; keep in mind the end user experience; make changes gradually

•         Don’t go it alone; find a trusted partner to help build your cloud migration plan

Ask a Cloud-based Managed Services Provider

•         How can you develop a plan for my business?

•         How will you support us? 

•         What is your capacity and scope of expertise?

•         What is your On-Boarding process?

•         How can you deliverable predictable results?

•         What metrics do you measure and provide to me?


Eric Stavola is IT certified with MSCIS, MCSE, MCSA, MCPS, N+, CDIA+ and is an executive IT consultant with a leading OEM. Contact him at: (619) 455-2732 or stavola32@gmail.com

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