Originally published in MSP Today
The cloud is currently one of the most significant technologies on earth, profoundly impacting businesses and consumers alike, regardless of industry or occupation. Even though the technology pre-dates the digital revolution by almost a couple of decades, the rise of technology has made cloud computing a necessity for the modern-day business.
Cloud computing has provided businesses the ability to deliver high-demand computer services such as storage and processing power over the internet, enabling organizations to leverage the myriad of innovative devices and applications available today.
The cloud computing market value ended at about $545.8 billion in 2022, but experts predict the market to grow at a CAGR of 17.9 percent, with estimates putting the market value at $1.240.9 trillion by the end of 2027. Furthermore, worldwide expenditures on public cloud services will balloon to $362.2 billion in 2022 from $257.5 billion last year, a 41 percent increase, according to estimates by Gartner.
However, one of the most common cloud-related problems among enterprises is the inefficient allocation of resources and spending. According to some estimates, the typical company wastes as much as 35 percent of its cloud budget, with small and medium businesses (SMBs) being especially prone to excessive spending. These numbers would have $126.77 billion of worldwide cloud expenditures under the category of inefficient spending.
“This is an extremely concerning statistic, especially for SMBs, who are already stretched when it comes to their operating expenses,” said Ben McGahon, Founder and CEO of Kalibr8, a cost optimization software platform designed specifically to automate the monitoring of cloud spending, and continually provide alerts and recommendations before pending races out of control. “This is why SMBs are increasingly looking for ways to optimize their cloud spending, and the most notable solution is a partnership with a quality MSP.”
The right MSP partner helps SMBs achieve a reduction in cloud spending through the use of a cloud optimization/management platform. These are suites of software tools that MSPs leverage to manage and optimize their cloud resources, providing users with tools that allow them to exercise administrative control over private, public, and hybrid clouds.
SMBs worldwide will likely spend $1.45 trillion on IT in 2023, representing a 6% growth from last year. Small and medium-sized businesses will increase their spending on technology in 2023, according to technology consulting and research firm Analysys Mason.
“MSPs are in an incredible position to expand their business with a cloud-first approach,” McMahon said, “and when they can assure their SMB customers that they have their back when it comes to ensuring maximum value out of their spend, they have a leg up on the competition.”
The global cloud computing platform market size is expected to grow from $545.8 billion in 2022 to $1.24 trillion by 2027 at a CAGR of 17.9% during the forecast period, according to one recent report.
“The rapid growth is unsurprising, as when implemented and leveraged correctly, a cloud optimization/management platform can offer a vast array of advantages to both MSP and SMBs alike, regardless of the sector in question,” McMahon said. “The MSP and Cloud Optimization industries are growing quickly, in parallel, for obvious reasons.”
For example, the most beneficial advantage for SMBs is the automated capabilities that a cloud management platform can provide.
“Our management platform is super intelligent, powered by AI for premium automation outcomes,” McMahon explained. “By providing automated capacity management, continuous integration, and orchestration to reduce operational burden, studies have shown that MSPs can help reduce SMB cloud by up to 65 percent each month.”
On top of this, cloud management platforms can also enable SMBs to enhance their cybersecurity abilities, a necessity amidst a digital age where cyber threats could be around every corner or, more likely, in every email. Currently, 43 percent of cyberattacks target SMBs, with 60 percent of SMBs reporting that the attacks are becoming more targeted, sophisticated, and harmful. Unfortunately, this isn’t surprising, as SMBs are common targets, being vulnerable due to their lack of awareness, knowledge, and resources.
“Cloud management plays a very active role in protecting a company’s data, applications, and services in cloud environments, meaning finding an MSP with a cloud management platform offering is crucial for SMBs,” McMahon added. “For MSPs, leveraging a cloud management platform can help optimize several facets within their organizations. Management tools come in handy, whether it’s real-time monitoring, alerting, deploying resources, configurations, or remediating issues. Cloud management tools bring numerous functionalities, such that MSPs don’t have to do much manual testing, installing, or billing.”
Furthermore, MSP cloud management platforms help solve the issue of runaway cloud expenditures by enabling cloud management, cost forecasting, rightsizing resources, and more. A cloud management platform can allow MSPs to rightsize instances, track costs, detect billing anomalies, monitor infrastructure changes, and analyze costs, also providing a forecast feature that can predict cloud spending depending on previous expenditures and current usage trends.
Overall, as the world continues to become increasingly digital, simply leveraging the cloud will no longer be enough for enterprises to get by. In order to survive in what is gearing up to be a highly competitive, technology-driven era, SMBs must leverage cloud management platforms in order to ensure they’re taking every step possible to maximize their returns from cloud spending. As for MSPs, cloud management platforms can not only offer an array of benefits for their own organization but can also enhance their clientele offering, allowing them to stand out from the competition and meet enterprise demands.