Tech Costs Are Becoming Cheaper Thanks To The Cloud

Thanks to cloud’s lower prices and greater efficiency, the tech costs for business making the transition are lowering IT spending at a considerable rate.  The creates a question for many small businesses, why hasn’t your IT service provider suggested moving your infrastructure to the cloud?  The answer is simple, money.  Many IT companies are stuck in the traditional managed services IT roll have been making large amounts of money “managing” the IT for their customers.  In addition to the service, they push new servers and workstations with ridiculously high mark up.  Those IT companies are scared to suggest something that costs less and is more efficient because they believe that they are effectively replacing a need for their service.  In some ways on a technical level, there is some reduction on the day to day issues that would be faced, but a good IT vendor is more than just someone to fix a laptop, or reset a password, a good IT vendor should be able to help you steer your company in the right direction when it comes to technology, a virtual CIO, if you will.


So who are the winners  and losers of this transition?  Well, the losers are vendors that live off of centralized, managed IT.  The winners are businesses that embrace the agile and cheaper resources of cloud computing.

Managed Service Providers (MSPs) may lose because their business portfolio shrinks as some of their clients make the move to the cloud without them.  MSPs that can embrace the cloud transition and broker between different cloud options will be able to maintain their client base and will take on a more advisory role.

Gartner and IDC claim that IT spending is down.  That may not be bad news, and in-fact may be good news for cloud computing.


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