Both private and public sector organisations are increasingly turning to managed cloud services to access business applications without having to negotiate the costs, risks, and complexities of managing the underlying. Managed cloud services help to enhance operational efficiency and provide financial flexibility to balance capital and operational expenditure. They also provide ready access to rapidly emerging technology innovations.
According to the UK Government National Cyber Security Centre (NCSC), managed cloud services are also considered to be the preferred mode of outsourcing business services compared to traditional infrastructure outsourcing. They properly transfer the overall responsibility for performant and secure delivery of services to specialised providers, allowing organisations to focus on their core competencies.
This article explores what managed cloud services are, delves into their business and environmental benefits and examines their impact on return on investment (ROI).
Understanding Managed Cloud Services
Managed cloud services encompass the full range of integrated IT functions behind business applications being managed by specialist service providers, including:
- Application Management: Providing ready and access to application which are installed, configured, updated, and integrated with the infrastructure by the service provider.
- Infrastructure Management: Ensuring optimal performance and uptime for cloud-based servers, storage and networks.
- Security and Compliance: Protecting cloud-based application and infrastructure from threats and ensuring adherence to industry standards.
- Data Backup and Recovery: Providing consistent backups and reliable options for data recovery in case of data loss.
By leveraging these services, businesses can offload application and infrastructure management efforts and responsibilities to service providers, ensuring their cloud environments are secure, efficient and aligned with best practices.
For public sector organisations seeking managed cloud services, the G-Cloud 14 Digital Marketplace framework, managed by the UK Government Crown Commercial Service, is designed to provide a streamlined procurement process to find, compare and purchase services from approved suppliers.
Business Benefits of Managed cloud Services
Adopting managed cloud services offers several advantages that contribute to improved business performance:
Cost Efficiency: Transitioning to managed cloud services eliminates the need for upfront investments in hardware, licensing, and ongoing maintenance, offering a predictable subscription pricing model that simplifies budget planning and management.
Enhanced Security: Managed service providers implement advanced security measures, such as regular updates, monitoring and threat detection, which can be costly for businesses to maintain in-house.
Scalability and Flexibility: Managed cloud services provide organisations the flexibility to scale resource capacities up or down based on demand, without worrying about constraints and complexities of traditional infrastructure.
Access to Expertise: Partnering with a cloud-managed services provider bolsters your business's adaptability, robustness, and adherence to industry and regulatory standards through the service provider’s application and technical expertise.
Focus on Core Business Activities: By outsourcing the range of application and infrastructure management tasks to managed service providers, organisations can refocus internal resources on core business activities and strategic initiatives.
Environmental Benefits of Moving to the Cloud
Beyond business advantages, migrating to cloud-based services also offers significant environmental benefits:
Reduction in Energy Consumption: Traditional data centres require substantial energy to power servers and cooling systems. Cloud platform providers are able to make enormous investments in energy-efficient designs and technologies leading to reduced electricity usage and a smaller carbon footprint.
Improved Efficiency: Cloud providers often utilise advanced technologies and infrastructure, resulting in higher energy efficiency compared to traditional on-premises data centres. For instance, moving to cloud services based on the Microsoft Azure platform can reduce the carbon footprint of self-hosted application by up to 98%. That is a huge shift towards becoming more environmentally sustainable as a company.
Promotion of Remote Working: Managed cloud services facilitate remote working by securely delivering application services anywhere across the internet. This reduces the need for commuting and, consequently, lowering greenhouse gas emissions associated with transportation.
Impact on Return on Investment (ROI)
Investing in managed cloud services can yield a substantial ROI through various avenues:
- Financial Flexibility: Managed cloud services can offer commercial flexibility to organise application costs between capital and operational expenditures, depending on business priorities and preferences.
- Cost Efficiency: The monthly subscription model for service charging eliminates the need for substantial upfront investments, enabling organisations to allocate resources strategically. Managed cloud services optimise costs by efficiently utilising resources and minimising wastage.
- Improved Productivity: With ready-to-consume application services available with the need for in-house management, businesses can enhance their core business agility, performance, and revenue growth.
- Enhanced Security and Compliance: Managed services providers implement advanced security measures, such as regular updates, monitoring and threat detection, which can be costly for businesses to maintain in-house. For added peace of mind, look out for security credentials such as the ISO 27001, Cyber Essentials and Risk Register. Read more
Additionally, according to a 2023 survey, approximately 29% of IT leaders expect to see a return on investment (ROI) from cloud technologies within just six months, while around 21% of C-suite executives anticipate ROI within one year.
Choosing the right cloud partner can significantly impact ROI. Crown Workforce Management not only provides access to a world-class cloud platform but also enhances its value through expert implementation, ongoing support and strategic guidance. Our tailored approach ensures organisations maximise cost efficiencies while optimising performance, security and compliance, delivering even greater returns on their cloud investment.
