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Feb 2018 - Market Perspective - Doc # US43529918

Building the Optimal Business Model: Benefits and Challenges of Managed Cloud Services

Author: David Tapper
Program Vice President, Outsourcing and Managed Cloud Services

Abstract

This IDC Market Perspective provides an in-depth look at not only the benefits and challenges that providers of managed cloud services are facing but also a set of building blocks for providers to utilize in constructing a long-term successful managed cloud services business and partner ecosystem.

"Managed cloud services providers can provide a wide array of benefits to buyers involving factors such as sourcing flexibility, arbitraging costs/prices, controlled transformation, application flexibility, portfolio optimization across cloud options, ecosystem orchestration, governance and PMO, and technology operations evolution; though they face some significant challenges in not just utilizing public cloud providers in areas involving automation, client use of a bypass strategy, co-optition factors, and back-to-back SLAs but also in adapting to dramatic changes in business operations and continued market pressure in driving prices down to the lowest possible costs," said David Tapper, vice president of Outsourcing and Managed Cloud Services. "Ensuring success in building a managed cloud services business will require managed cloud service providers to emphasize depth and breadth of knowledge with the customer's business, show the value of 'managing to business outcomes,' focus on automating technology operations and creating a platform of delivery, create a seamlessly integrated organization, invest in public cloud infrastructure, and support integration of IT-OT (IoT) managed services."

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