In 10 years most SMB owners will be entirely cloud-based
The latest Cloud IT Report states that within the next 10 years, over 73% of SMB owners will have shifted their IT systems entirely to the cloud. This will force the IT Managed Service Provider industry, which previously focused on managing onsite hardware equipment, to include cloud-based technologies to their repertoire of managed IT services. There are some challenges this shift poses to the MSPs regarding resource expertise and infrastructure compatibility.
Using the cloud is cheaper for SMBs
The reason for this switch is simple really, cost. Here are some running costs associated with onsite hardware equipment:
- Electricity – the most overlooked cost, running servers 24/7/365 can really add up. On Average a single server consumes nearly 7500 kWh per year or up to $ 1300 CDN per month based on peak OEB electricity prices.
- Cooling – it’s one thing to make sure that the servers are on, it’s another to make sure they stay on with the proper cooling and ventilation
- Security – The onsite server needs to be physically secured, since it literally houses all of the confidential information being communicated across the company
- Hardware refresh – the overlooked “5-year rule”, where every 5 years onsite hardware needs to be replaced, depending on the IT setup. This can be quite costly.
- Downtime – Cloud-based servers have significantly reduced downtime in comparison to onsite servers. Of 200 surveyed businesses across the USA and Europe, they found that a total of $26.5 Billion USD in revenue is lost each year due to IT downtime.
MSPs Cloud benefits
The MSP industry needs to react to this massive cloud migration to stay relevant. It cannot be ignored any longer. If an MSP chooses to ignore this shift and not notify their existing clients about the benefits of the cloud, then their competitors will. MSPs will benefit from Virtualization and Cloud management services in many ways:
- Central Management – MSPs are able to use a centralized management portal to manage multiple devices spread out among many locations.
- Cloud Provider – The option of providing private cloud services provides SMBs a heightened sense of security.
- Reduced Onsite Deployments – Reduce your costs of sending onsite technicians to client-side locations for minor issues. (Loose Ethernet cable, hard booting a server, etc.)
- From SKUs to Solutions – Leveraging the cloud allows a MSP to provide complete cloud-based solution bundles rather than single products.
- Helpdesk specialization – Incoming calls are application specific, allowing for better SLA (Service Level Agreement) performance and FCR (First Call Resolution) times.
Jolera helps resellers become MSPs
Here at Jolera, we understand that not all resellers have the IT infrastructure to support an MSP business model. This requires years of experience, an up and running private cloud, a team of experts with years of experience under their belt and an IT products and service portfolio. So how do current resellers compete with the MSP giants? It’s simple, Jolera has recently launched its Channel Partnership Program. Through the partnership program, Jolera enables resellers, big or small to leverage a privately hosted cloud, backed by 24/7/365 support, monitoring and maintenance, to provide their customers with managed cloud services. Alongside IT industry’s big names such as Dell, Microsoft and Lenovo, Jolera is able to provide high-quality solutions for the reseller to add to its IT portfolio.
Help your clients make the shift
If your clients are not already in the cloud, they will be in the very near future. They may already be making inquiries about cloud services and possibly transitioning. Instead of reacting, approach the situation with an experienced Cloud and Service aggregation partner like Jolera. Jolera has all the necessary tools and experience to assist in developing or enhancing your managed services and cloud strategy, enabling you to better service your clients.