For many organizations it has become more cost effective and lower in operational risk to place their day-to-day IT functions with a managed service provider (MSP), rather than host needed staff and facilities in an in-house data center. The overall financial climate, which has caused significant cuts in IT infrastructure resources and budgets, makes the use of a MSP to host the critical business applications more attractive, both financially and logistically. Also, as organizations become more geographically distributed, the use of MSP platforms provide a lower risk, higher availability offering to organizations, whether they are small, medium or large in IT usage.
The role of the MSP in the IT world is further evolving as the use of cloud becomes more prevalent. MSPs are ideally suited for implementing cloud for their customers, since their platforms are remote from the client organization by design. The structure of the hosted clouds is a cross between a private and public cloud, and can be viewed as a community cloud, where all applications and resources are managed by the MSP. This provides a unique view on cloud computing, and is one that carries with it an extremely compelling argument for customers when considering an MSP relationship.