MSPs Overspending on Cloud Services

New data reveal that MSPs think they're spending too much on hypserscale cloud services.

The data, gathered by Leaseweb, reveals that more than one-half (54%) of U.K. MSPs spent more in the last 12 months on services from AWS, Microsoft Azure and Google Cloud than they had initially budgeted. The report, based on a survey of more than 200 respondents at the MSP Show in London, aims to understand the economic challenges facing MSPs in the United Kingdom.

Leaseweb's Terry Storrar

“Public cloud services are a key component of the solutions provided by MSPs across the sector, but there remain a number of pain points that need to be addressed,” said Terry Storrar, managing director at Leaseweb UK. “MSPs need to be aware of their options so they can address today’s varied requirements, from hybrid and multicloud strategies to repatriation.”

The MSPs also reported that their greatest challenge with hyperscale cloud services is the growing cost. In fact, more than one-third (34%) reported spiraling costs as their greatest challenge. These were followed by limited customization and control abilities (31%) and lack of customer service (29%). More than one-half of respondents also reported that their hyperscale provider didn't have a dedicated account manager.

More than one-quarter of MSPs working with hyperscalers said that vendor lock-in and complex pricing structures were key concerns.

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Many of the challenges that MSPs identified with hyperscalers were also seen with non-hyperscale cloud providers. Less than one-half of MSPs (47%) reported that they spent more than they budgeted on non-hyperscale cloud services.