What Will the Cloud Mean for MSPs Next Year? 7 Things You Need to Know
What will the cloud mean for managed service providers (MSPs) and the IT channel in 2016? A new ProfitBricks survey of IT professionals examined how MSPs could leverage the cloud to help their customers achieve better results in 2016.
![What Will the Cloud Mean for MSPs Next Year? 7 Things You Need to Know What Will the Cloud Mean for MSPs Next Year? 7 Things You Need to Know](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt48be3a1db44c3700/6538ec86712bed18fcf55769/Cloud_Computing_0.jpeg?width=700&auto=webp&quality=80&disable=upscale)
What will the cloud mean for managed service providers (MSPs) and the IT channel in 2016? A new ProfitBricks survey of IT professionals examined how MSPs could leverage the cloud to help their customers achieve better results in 2016. Here are seven things you need to know about the cloud's impact on MSPs and the IT channel next year.
Looking to extend your reach? The ProfitBricks survey showed the cloud gives MSPs the opportunity to offer cloud-related services such as backup and disaster recovery (BDR), cloud migration and many more. As a result, an MSP can leverage the cloud to expand its portfolio in 2016.
ProfitBricks pointed out the cloud delivers proven cost savings, which could make it increasingly valuable for MSPs and their customers in 2016. In fact, MSPmentor 501 honoree Dimension Data also noted some cloud users have lowered their total cost of ownership of infrastructure up to 75 percent.
A recurring revenue model is essential for MSPs because it enables them to streamline customer billing, offer discounted service plans and reduce delinquencies. ProfitBricks noted the cloud provides an additional recurring revenue source that MSPs can utilize in 2016 and beyond.
International Data Corp (IDC) has predicted total spending on cloud IT infrastructure will grow 24 percent and exceed $32 billion this year. ProfitBricks said the demand for cloud infrastructure services may continue to grow in 2016, and MSPs could see cloud infrastructure services as having the highest growth potential among cloud services.
Infrastructure-as-a-service (IaaS) could deliver a significant opportunity for MSPs in 2016. ProfitBricks noted IaaS enables MSPs to migrate customers to the cloud and offer value-added services, all while helping service providers lower their hardware support costs and increase their profit margins.
The ProfitBricks survey revealed few enterprises prefer to leave their systems on-premises. Instead, most enterprises want to migrate one or more of their workloads and/or applications to the public cloud. In 2016, MSPs can help enterprises streamline their workload migrations to the cloud, and ultimately, may be able to increase their revenues as well.
Near 100 percent uptime is critical for organizations. And if an organization's on-premise system goes down, it may take days, weeks or even months to fully recover. However, an MSP that sets up a customer's cloud infrastructure to account for potential failures can offer a new value-added service level in 2016.
Near 100 percent uptime is critical for organizations. And if an organization's on-premise system goes down, it may take days, weeks or even months to fully recover. However, an MSP that sets up a customer's cloud infrastructure to account for potential failures can offer a new value-added service level in 2016.
What do you think of the ProfitBricks survey? Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].
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