Established Managed Service Providers are doubling their customer base in a matter of months not years by offering private cloud. Public cloud solutions like AWS and Azure are not always the right solution for the enterprise IT environment. Especially now when management is concerned about privacy. Do not get me wrong, massive organizations like Netflix, who have a direct relationship with AWS, are not going anywhere.

That said most enterprises are not pumped on paying Jeff Bezos or Bill Gates 10% of their cloud hosting cost for support on top of allowing Jeff and Bill access to all their metadata. For example, a large enterprise with $150,000 worth of infrastructure in the cloud would have to pay $15,000 a month for support. This figure is based on enterprise level support from AWS (%10 of monthly spend).

A growing number of enterprises are moving their IT infrastructure into data centers and hiring third party managed service providers to support their employees. The majority of Managed Service Providers are a trusted local IT organization focused on small and mid-sized companies in the community.

Cloud is about how you do computing, not where you do computing – Paul Maritz Click To Tweet

With COVID-19 creating a massive remote work force and entire industries relying on technology to survive there has never been a better time to get into the MSP space. The MSP space is growing quickly as organizations of all sizes recognize the importance of technology. As on-premise hardware ages out and businesses get out of their office leases the demand for a competent MSP has increased. The cost of having a full time on-premises IT support team can get cost prohibitive quickly.

All this to say smart MSPs have private cloud in their tech stack.

Private cloud environments allow for custom configurations that the public cloud cannot offer. For example, some companies must have access to their hardware for compliance reasons. These companies need their own private environments that are engineered to their specific requirements. In another scenario, a company may need to run a process that requires dedicated hardware. Say you are running massive calculations for a genome application. This will require multiple dedicated processors.

With private clouds the client uses hardware owned and managed by the client of the MSP not Jeff or Bill. Private Clouds can be customized to meet the exact requirements of your clients. Moving from a public cloud to a private cloud is like moving from an apartment and into a house. No shared resources. Additionally, the private cloud allows users to have control and administrative rights that are not offered in the public cloud. When, for example, a biotech company needs additional safeguards or a real estate company needs to keep workloads separated, the private cloud is the only option.

Security, performance, and privacy are some great reasons for managed service providers to offer private cloud. If other Managed Service Providers in your area don’t offer private cloud, and you do, this gives you a big advantage. Accounting departments hate the random cost of public clouds. The public cloud pricing model is based on use. Use too much compute, RAM or storage and your cost will skyrocket. Private clouds on the other hand offer fixed pricing.

MSPs that offer private cloud with Fiber Alley will see their customer base grow while other MSPs lose their business to Jeff & Bill. That is not an exaggeration. Demand for on-premise IT support is dwindling. Companies are moving IT resources into the public cloud with no clue on how to manage IT resources hosted in the cloud. AWS and Microsoft are calling your customers. And your customers are taking the bait.

What are you going to do about it?

To stay relevant, you must offer specialized and differentiated solutions. Offering public cloud to your clients is not going to differentiate your MSP. If you run an MSP and don’t know how to design, deploy, and support private cloud infrastructure, Fiber Alley can help. Our expert team of engineers and architects will follow a step-by-step process that will WOW your clients and make your business more enjoyable and profitable. Contact us now to learn more about how Fiber Alley can support private cloud environments and a solutions architect will contact you shortly.