Some Managed Service Provider specific insights.
A recent global survey conducted by Flexera reveals that sixty percent of organizations are now using managed service providers (MSPs) to oversee some or all of their public cloud operations. This represents a notable increase from just thirty-six percent of small to medium-sized businesses utilizing MSPs last year, with nearly half now relying on them. The survey also highlights that Amazon Web Services remains the leading cloud platform, boasting a seventy-nine percent adoption rate, while Microsoft Azure follows closely at seventy-seven percent. Interestingly, a significant eighty-six percent of respondents are navigating multi-cloud environments. Despite rising cloud spending, with organizations expecting an average increase of twenty-eight percent in 2025, cost management remains a critical challenge, with eighty-four percent identifying it as their biggest hurdle. As more than half of all workloads are now in the public cloud, organizations are increasingly looking to MSPs for help in controlling costs while enhancing deployment speed.
Why do we care?
The Flexera survey underscores a critical shift: more organizations, especially SMBs, are turning to MSPs for public cloud management. This rise from 36% to nearly 50% among SMBs indicates a growing trust in MSPs to manage complex cloud environments. While the shift to MSP-driven cloud management is promising, beware of potential commoditization. As more MSPs offer similar services, differentiation will be key. Consider specialized cloud cost optimization services or advanced analytics to stand out.
Despite increased reliance on the cloud, cost management remains the most significant pain point. Organizations are grappling with rising cloud expenditures, expected to grow by 28% in 2025. Clients are not just seeking technical management but strategic financial oversight.