Cloud computing is a set of IT solutions that depend on infrastructure and assets to be hosted off the premises of the business that will use and consume them. Managed services is a complementary strategy that is based around the concept of an IT company using remote connections in order to manage and monitor a variety of assets including servers and in some cases, items connected to those servers. Both business models heavily use the internet to deliver IT services from a distance.
The rapid adoption of cloud computing does not mean, however, that managed services are falling by the wayside. Instead, managed services providers are increasingly leveraging cloud technologies to improve their own offerings to the businesses and other organizations that make up the bulk of their consumer base. Indeed, managed services providers are ideally positioned to assist their clients to harness the power of cloud computing because they already understand the nature of remote consumption of technology at a deep level.
Indeed, according to a 2010 survey, more than half of IT solutions providers are producing unique services that make use of both cloud resources and systems that are on site at a business premises. This synergy between cloud computing and more traditional managed services approaches can help service providers to scale applications more effectively. It can also help to lower costs for businesses willing to migrate essential IT functions onto a cloud-based approach.
Managed services providers can help businesses to understand how expanded cloud usage can help them accomplish core competencies in a manner that is both reliable and cost-effective.