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5 Reasons “Managed Cloud” Continues to Gain Momentum


 Cloud has already reached mainstream  status. That’s indisputable…IDC forecasts that private cloud spending  alone will reach $40.6 billion by 2019. In fact, many industries view  the cloud as their route to success in a fast-evolving marketplace. The  industries now seeing the fastest rate of adoption are manufacturing,  retail, and media.

  To expand on this, a recent Aberdeen Group study found that 46% of  Best-in-Class organizations are currently using some form of the cloud –  a figure destined to climb in the coming years.
  In short, moving to the cloud is no longer a revolutionary concept.  How it’s done and maintained is the deeper question, and many businesses  – large and small – are finding that dedicated solution providers make  profound sense in the equation. They not only effectively manage IT  infrastructure; these experts save time, money and resources, while  enabling end customers to focus more exclusively on their primary core  competencies.
“Managed cloud” is where  partners are making major inroads. They provide management and support  to ensure smooth operations 24 x 7. From applications and infrastructure  to business processes and other professional services, it’s an  outsourced approach that deserves careful consideration. Here are five  factors putting partners in the cloud driver’s seat:

  1. Lower cost of IT
 Managed cloud environments are among the most affordable cloud options. The SAP partner managed cloud  model, for instance, allows customers to pay a monthly cloud  subscription fee instead of higher up-front costs of an on-premise  solution. Aberdeen estimates that cloud solutions generate 30% lower TCO  over a five-year period. Their research also reflects that  Best-in-Class companies are 58% more likely than All Others to reduce  the cost of configuration changes by working with a dedicated partner.  Of course, this approach correlates directly to reductions in the number  of in-house IT team members required to implement and sustain cloud  solutions.

  1. Reduction in complexity
 Aberdeen reports that 19% of Best-in-Class companies report a  reduction in the complexity of their IT infrastructure since deploying  the cloud, and the same 19% have improved the ease of application  administration and management. Providers of SAP partner managed cloud  aid this by bundling solutions and services with their own unique  Intellectual Property (IP). Partners may tailor their IP and services to  a specific industry or solution which in turn allows businesses to have  their needs met more easily. The ability to leverage partner IP  capabilities may reduce the need for businesses to seek out multiple  vendors for separate services.

  1. Faster deployment and fulfillment of end-user requests
 Aberdeen also found that Best-in-Class companies are 12% more likely  than All Others to reduce the time needed to fulfill end-user requests  when they incorporate outsourced support into their solution maintenance  strategy. Consequently, when businesses rely on dedicated outsourced  partners, their in-house personnel can devote more time to fulfilling  end-customer needs.
  On top of this reality, cloud deployments are also typically less  disruptive and can be completed in a fraction of the time associated  with on-premise solutions.

  1. Higher productivity
 Best-in-Class companies, Aberdeen found, are also 28% more likely  than All Others to cite a need to drive higher productivity as a reason  for outsourcing product development, implementation, and support to a  dedicated partner. In addition, they often view resources in the cloud  as more reliable than services delivered on-premise, especially as  servers and hardware age. Managed cloud service providers’ experienced  IT teams are also fully focused on resolving issues quickly and  effectively. Their customers spend less time managing their own IT,  allowing sharper focus on core business processes and becoming more  competitive. For small businesses wanting to stretch resources, managed cloud represents a particularly viable option.

  1. Faster resolution of incidents
 The Aberdeen study shows that Best-in-Class companies are 9% more  likely than All Others to have reduced time in resolving incidents when  outsourcing solution management to a dedicated partner that can respond  to requests in real time. Such partners with dedicated IT teams ensure  that customers always have someone to call if an issue arises with their  systems and applications. Cloud providers likely can resolve the issue  much faster than the customer’s own IT personnel, who may not have  experience with the problem at hand.

  Ultimately, the choice is up to business owners and leaders to decide  what cloud direction is best for them, but these numbers certainly make  a compelling case for solution providers. What’s your view of partners  in this space? I’m confident that the channel will gain extraordinary  momentum as cloud solutions continue to soar. 
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