Companies Limiting Their Potential in Public Cloud?

Companies Limiting Their Potential in Public Cloud?

Organizations leveraging the cloud want the bang for their buck.  Managed service providers (MSPs) know that this means they can leverage the public cloud for more than just data warehousing.

What’s the biggest reason that organizations decide to use the pubic cloud for cloud-based file sharing and storage?  Is it the low cost?  Is it the ease of use?  Do these aspects equal efficiency?  According to Network World, these aspects are more ‘lure’ than ‘cure’ for many companies looking to improve on their business process and cost efficiency.

Henry Baltazar, an analyst at Forrester Research, suggests that even companies that do possess the room for expansion in their data centers are realizing that in-house storage infrastructure won’t ever be as scalable as the public cloud.

Managed service providers (MSPs) know—and many companies are now realizing—that no matter how much storage capacity an organization adds to its data center, the storage space is only theirs for as long as the equipment in the data center remains viable.  Cloud solutions allow organizations to ‘possess’ that data storage space beyond the lifecycle of any physical equipment.

Yet, for many companies, cloud storage space is only utilized for additional storage space—not as a main solution for storing or sharing all data.

Baltazar calls this “cheap-and-deep” storage approach a product of “secondary storage” spending.  This helps to explain why so many companies are content to use the public cloud, an option they see as cheaper and easier to use, while they aren’t overly concerned with a lot of the information they’re storing on it.

Really, much of this data is likely just being offloaded onto the cloud.  The public cloud is just a nice place to backup and store data, while companies realize they won’t need to access the information much at all.

Companies in this mode may feel pretty satisfied with themselves for only making use of the cloud for the data-dump approach, but MSPs know better and can educate these businesses on the greater advantages of the cloud.

IDC analyst Paul Hughes points out that cloud storage should be viewed as “part of a greater IT transformation that looks to use the cloud as a better way for users to gain access to data.”  This includes storage, but also general file sharing and superior document collaboration.

Bob Muglia, the CEO of data warehousing startup Snowflake, spells out how MSPs can position their up-sell to clients.

“The balance that all companies are heading towards is, ‘How can I take my existing investment, leverage a set of cloud resources where I possibly can, and do so in a way that increases my efficiency?’” says Muglia.  “It’s so clearly the direction of the future.”

Muglia’s got a point.  All companies, no matter how large or profitable, are looking for the most bang they can get for their buck.  As their MSP, it’s up to you to educate them as to how powerful a larger suite of cloud solutions can be in helping them to achieve a greater business process and cost efficiency.

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