Six Considerations When Choosing A Private Cloud Managed Service Provider
As the digital landscape continues to evolve, businesses are under increasing pressure to adopt cloud technologies to remain competitive. Private cloud-managed services offer businesses a secure and flexible way to harness the power of the cloud while also enjoying the benefits of a managed service.
In addition, private cloud-managed services have become essential for companies to manage their data, applications, and infrastructure. According to a recent global survey, spending on cloud infrastructure will register a 23% increase in 2023, with 63% of businesses worldwide saying they heavily rely on cloud resources. The same survey found that most organisations prefer a private cloud infrastructure for its numerous benefits.
The main benefits of private cloud-managed services
One of the key benefits of private cloud-managed services is enhanced security. In 2022, 80% of businesses reported more than one cloud security incident. Also, 96% of businesses experience numerous challenges when deploying their cloud strategies, with the top being security management.
Fortunately, with a private cloud-managed service, companies can maintain control of their data and applications while also enjoying the security benefits of a managed service provider. The provider can ensure compliance with industry regulations and standards, perform regular security audits, and provide 24/7 monitoring and support.
Also, private cloud-managed services promise increased scalability. Businesses can quickly and easily scale their resources up or down, depending on their needs, without worrying about infrastructure management. Such flexibility allows businesses to remain agile and responsive to changing market conditions.
Furthermore, private cloud-managed services offer businesses cost savings. In recent years, more and more companies are increasingly adopting as a service and pay-per-use cloud models. The approach focused on deploying private cloud infrastructure and allowing the vendor to manage it reduces the operational burdens for the organisation. Besides, the consumption-based pricing model facilitates an accelerated digital expansion by enabling companies to shift costs out of future quarters. The provider can offer pricing models that align with the business's needs, such as pay-per-use, reserved, or spot instances.
Factors to consider before settling on a private cloud-managed service provider
Now, any business can implement a private cloud-managed service strategy. But what factors should you consider before settling on a private cloud-managed service provider? Here are six considerations that must inform the decision.
Does the provider know your industry?
When selecting a private cloud-managed service provider (MSP), one of the essential factors to consider is whether the provider knows your industry. Different industries have unique requirements and regulations that businesses must adhere to and managed cloud services that understand these needs can provide better solutions and support.
Furthermore, the provider's understanding of your industry will enable them to tailor their services to meet your unique needs and requirements. Additionally, industry expertise ensures the provider is familiar with your regulatory environment, compliance obligations, and security standards.
Private cloud providers with industry knowledge can help the organisation streamline operations, optimise resources, and improve business outcomes. For instance, healthcare organisations require a managed service provider that understands healthcare regulations such as HIPAA. Healthcare industry knowledge can ensure that the cloud infrastructure and services meet HIPAA requirements and protect sensitive patient data.
Similarly, the financial industry has strict regulations governing sensitive financial information handling. For example, PCI DSS outlines the requirements for secure credit card transactions. An MSP that provides private cloud services to financial organisations must ensure its services comply with PCI DSS.
Additionally, different industries may have unique challenges and requirements regarding data storage, processing, and access. The manufacturing industry may require large amounts of data storage to support computer-aided design (CAD) applications, while the legal industry may require secure remote access to sensitive documents.
Choosing a private cloud-managed service provider with industry knowledge ensures your organisation receives customised services that meet your needs and requirements. Therefore, an MSP that understands your industry's specific requirements can provide tailored solutions that meet your organisation's needs while ensuring compliance with industry regulations. Additionally, an MSP with experience in your industry may better understand the challenges and risks associated with managing private cloud services, allowing them to provide better support and troubleshooting.
2. Does the provider allow access to your data and platform without hidden charges?
One critical factor is whether the managed IT services provider allows access to your data and platform without hidden charges. Hidden charges can significantly increase the overall cost of the service, making it difficult to budget for and potentially leading to unexpected expenses. A recent study found that hidden costs associated with cloud services can account for up to 30% of total cloud spend. Therefore, it is important to choose a provider that is transparent about their pricing and has no hidden charges.
Before choosing a managed private cloud provider, thoroughly review their service-level agreement (SLA). The SLA should clearly state the pricing model and any additional charges that may apply. If the SLA is unclear, requesting clarification from the provider before signing any contracts is essential.
Another factor to consider is the level of control a private cloud provider allows over the data and platform. Some providers may limit access to the data or charge additional fees for access. Unfortunately, this can be problematic for organisations that need to maintain full control over their data. A cloud security report by Check Point Security revealed that data security is the top concern for organisations considering cloud services, with 66% of respondents citing it as a major concern. Therefore, choosing a provider that provides full control over the data and platform without any hidden charges is essential.
Furthermore, it's important to understand the different pricing models that providers may use. Some providers may offer a usage-based model, which charges based on the amount of data stored or the number of transactions processed. Other providers may use a fixed-fee model, which charges a flat rate for a certain amount of storage or usage. While both pricing models have their advantages and disadvantages, it's important to ensure that the pricing model is transparent and clearly outlined in the SLA. Hidden charges can include fees for accessing or transferring data, additional charges for increased usage or storage, or fees for add-on services.
Lastly, consider the level of data portability that a managed service provider offers. Some providers may make migrating data from their platform difficult or charge high fees. Such cases can cause challenges if an organisation switches providers or moves data to an on-premise solution. Therefore, choose a provider with robust data portability options without hidden fees or barriers.
3. A clear roadmap of the process
When considering a private cloud-managed service provider, assess whether they provide a clear process roadmap. A clear roadmap can help you understand what to expect when migrating to the private cloud and how the provider plans to support your organisation's needs.
A clear roadmap should include a detailed plan for migrating your applications, data, and infrastructure to the private cloud. The plan should also address any potential roadblocks or challenges during migration. The roadmap should be customised to your organisation's needs and include timelines, milestones, and key performance indicators (KPIs) to measure success.
The provider should also provide ongoing support and maintenance for the private cloud environment. It must include regular monitoring, security updates, and performance optimisation. In addition, private cloud MSP should have a team of certified experts who can troubleshoot issues and ensure that the private cloud environment runs smoothly.
Moreover, having a clear roadmap of the process is essential for a successful migration. Specifically, the roadmap enables private cloud customisation to meet the organisation's infrastructure and data management needs. The private cloud provider should tailor the roadmap to your organisation's needs and requirements. A one-size-fits-all approach is unlikely to be effective. Transparency is also important, and the provider should clearly explain each step of the migration process and the rationale.
Businesses should also understand that migrating to a private cloud is collaborative between the provider and the organisation. The roadmap should reflect this collaboration and include regular check-ins and communication channels. The provider should also be open to feedback and willing to make adjustments as needed. The roadmap should also include a realistic timeline for the migration process, considering any potential roadblocks or delays that may arise. Balancing speed with thoroughness is important, as rushing the migration process can lead to mistakes.
Finally, the roadmap should include measurable KPIs to track progress and ensure success. These KPIs should align with your organisation's goals and be regularly reviewed and updated as needed.
4. Accreditations
Accreditation is a crucial factor to consider when choosing a private cloud-managed service provider. Accreditation refers to a formal recognition or certification by an independent third-party organisation that a service provider has met certain standards and demonstrated competency in delivering quality services.
In the context of private cloud services, accreditation assures businesses that their data and applications are being hosted and managed by a provider that has demonstrated high security, reliability, and compliance. It provides assurance that the private cloud provider has met certain standards and undergone rigorous testing and evaluation.
Firstly, ensure that your chosen private cloud provider has the appropriate accreditation for your business needs. For example, if your business handles credit card transactions, you must ensure the provider is PCI DSS compliant. ISO 27001 certification will provide additional assurance if you have strict security requirements.
It's also important to note that accreditation is not a one-time event. Providers must undergo regular audits and maintain their certifications to remain accredited. Frequent audits ensure that they are continuously meeting the required standards and maintaining high security for their customers.
One of the most important accreditations for private cloud providers includes ISO 27001. ISO 27001 is a globally recognised information security standard that specifies the requirements for establishing, implementing, maintaining, and continually improving an information security management system (ISMS). To achieve ISO 27001 certification, a private cloud provider must undergo a rigorous audit to ensure they have implemented a secure cloud infrastructure. The security measures include demonstrating compliance with various security controls, such as access control, data encryption, vulnerability management, and incident management.
Another accreditation relevant for private cloud providers is SOC 2. SOC 2 is a standard developed by the American Institute of Certified Public Accountants (AICPA) that measures the effectiveness of a provider's controls in security, availability, processing integrity, confidentiality, and privacy.
A SOC 2 audit involves an independent assessment of a provider's controls. It focuses on assuring customers that their data and applications are managed securely and reliably.
In addition to these accreditations, other industry-specific certifications may be relevant for certain businesses, such as HIPAA for healthcare organisations or FedRAMP for government agencies.
5. Data Governance
When choosing a private cloud-managed service provider, data governance must be a priority consideration. In managed cloud security services, data governance refers to the policies, processes, and technologies providers implement to manage and protect customer data. With the increasing volume of data being generated and stored in the cloud, ensure that the private cloud MSP manages and secures it effectively.
One of the key aspects of data governance is compliance with industry regulations and standards. For example, the GDPR requires organisations to ensure the security and privacy of personal data. Similarly, the PCI DSS sets requirements for protecting credit card data. A good private cloud-managed service provider should have a deep understanding of these regulations and standards and be able to help their clients comply.
In addition, data security is a critical aspect of data governance. Cyberattacks are becoming increasingly common, and organisations must protect their data against such attacks. A managed service provider should implement robust security measures like firewalls, intrusion detection and prevention systems, and access controls. They should also have processes to detect and respond to security incidents promptly.
Also, data privacy is a critical consideration when choosing a private cloud MSP. Customers entrust their data to their managed service provider and need guarantees that their data is not accessed or used without their consent. A good provider should have policies for ensuring that authorised personnel only access data and that any access is logged and audited. They should also be transparent about how they use customer data and ensure they don't share the data with third parties without the customer's consent.
6. The providers' SLAs
Service Level Agreements (SLAs) are essential to selecting a managed private cloud provider. SLAs are formal agreements between the provider and the client that outline the level of service quality the client can expect and any guarantees the provider offers. As such, selecting the right provider requires careful consideration of their SLAs.
In evaluating the SLAs, consider uptime guarantees. Uptime is the time the provider guarantees that their services will be available. The higher the uptime guarantee, the better the provider's reliability. For example, a provider with a 99.9% uptime guarantee means that their services will almost always be available with only a few minutes of downtime per month due to reasons like maintenance.
Another important factor to consider is the provider's response time to issues. The SLA should specify the maximum time the managed private cloud provider takes to acknowledge and respond to an issue. A good provider should have a quick response time and support staff available around the clock.
The SLA should also outline the provider's data backup and recovery policies. Data loss can have severe consequences for businesses, and it is crucial to have a robust backup and recovery solution. The SLA should specify how frequently the provider performs backups, where the backups are stored, and the provider's recovery time objectives (RTOs) and recovery point objectives (RPOs).
It is also essential to evaluate the provider's security policies and procedures. The SLA should outline the security measures the provider has in place to protect their client's data, including encryption, firewalls, intrusion detection systems, and access controls. The provider should also have regular security audits and vulnerability assessments.
Additionally, the SLA should specify the provider's network and infrastructure availability. The provider should have redundant infrastructure and network systems to ensure high availability and minimise the risk of downtime. They should also have a disaster recovery plan in case of unexpected events such as natural disasters, power outages, or cyber-attacks.
Finally, evaluating the provider's pricing structure and billing policies is vital. The SLA should specify the provider's pricing model, any additional costs, and any penalties or discounts related to service quality. The provider should be transparent in the pricing and billing policies, and their charges should align with service level agreements.
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