Like all things in life, moderation is key. I suppose that would also be true for the IT industry and how we assess the types of IT services trends we see on a regular basis. My realization, reinforced yet again by having dinner with a group of MSPs in Houston and Dallas this week, is that cloud computing may have a lot of benefits, but it certainly is not without its share of risks and downsides. In fact, cloud may have outlived is usefulness, at least for some MSPs.
Somewhere between the Truth and Cloud Computing
Cloud computing was never popular with MSPs. At least during the early days of cloud (2007-2009) most MSPs I spoke with were concerned about cloud chiefly because their customers were wanting cloud to significantly cut their IT management costs. Most MSPs saw through this and realized a move to the cloud would not cut costs without significantly reducing at least one of these following areas: customization, personalized service, security, and privacy. Still, MSPs relented and began to deliver cloud services to their customers.
Today', we are in a different time than 2008, when clodu computing was full of promise and hope. Today, cloud computing is an option, nothing more. Most MSPs realize the natural limitations of cloud computing, particularly public cloud computing, and are advising customers to be cautious in their expectations about what cloud can bring them.
Sound crazy? The MSPs I talked to this week have all but stopped using cloud in their sales and marketing language.
Cloud Has Its Limitations for MSPs
Let's deal with one matter immediately. These MSPs I met with were very optimistic about the future of IT. They almost unanimously believe that demand for IT managed services is going to increase and that their revenue potential is strong. This optimism does not, however, mean that they are using the messaging of cloud to achieve this success. Far from it.
These MSPs will not use cloud any longer because it is too generic. It can often create more confusion than bring understanding. What was more interesting, is that many of these same MSPs are actually delivering cloud solutions but refusing to use the term cloud in defining those solutions. Now, I found that really interesting.
The term cloud is generic; it always has been. I believe these MSPs are finally realizing that cloud has its limitations, that public cloud vendors may not have their best interests at heart, and that in order to survive, the MSPs must do what is in their best interests.
I was very inspired to see this from a group of mostly smaller to mid-sized MSPs. Will this trend catch on? Or has it already started to spread?
