MSPs report user cloud shift is rising

The move to cloud is continuing, with more managed service providers (MSPs) noting a shift by customers to take more workloads off-premise.

According to research from Kaseya, as many as 75% of client workloads will be cloud-based over the next three years, and that shift is fuelling activities in the channel. That figure represents a 25% increase compared to when the same question was asked of the channel last year.

The firm found that almost all (95%) MSPs are looking to exploit opportunities that are emerging around cloud integration. As it stands, 90% of MSPs are already in a position to offer cloud-based infrastructure design and management.

The research highlighted some of the stumbling blocks that could be holding customers back, with it clear that security remains a concern and that more user education is needed if the digital transformation shift is to hit its potential.

Users are also worried about budgets, which underlines the need for managed service players to be clear and transparent in their pricing structures.

“These research figures are demonstrative of the rapid acceleration and acceptance among businesses of cloud technology. More are witnessing the benefits of cloud applications, including easier collaboration between employees and improved productivity,” said Chris McKie, vice-president of product marketing for security and networking solutions at Kaseya.

“However, MSPs must not only communicate the advantages of the cloud, but help to ease the continued fears among businesses around compliance and security,” he added.

Fears about cloud costs are set against a backdrop of a worsening economy, but in many cases are also based on bitter experience.

Recent research from multicloud specialist and managed services player Aptum – Cloud impact study 2022: part 3 – taking control of cloud costs – found that cloud had resulted in higher-than-expected costs for 73% of users. That is a significant increase on the year before.

Issues were found to occur because users were unfamiliar with the cloud, failed to keep an eye on costs, and discovered that once their workloads were in a hosted environment they struggled to move them to another location.

“Unforeseen costs associated with the cloud can be a challenge for many businesses that lack a comprehensive cloud strategy. Typically, unanticipated costs come about due to a lack of familiarity with the cloud,” said Marvin Sharp, vice-president of product and strategy at Aptum.

“Businesses don’t always fully understand how consumption models work and which one is best for their organisation. For example, the original migration can often cause a peak in price due to lack of successful refactoring of applications. This price increase can be large, and isn’t always explained to businesses, causing unnecessary concern.”