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Managed Cloud or Traditional IT Services: Pros and Cons

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Managed Cloud ServicesIT Services for small and midsize businesses have evolved over the years. The technologies and IT systems we use are more capable and complex. We face new and ongoing challenges related to collaboration and security. Our IT is a critical component of our business infrastructure. 

The management and support of our information technology and services need a more sophisticated approach to match our business and technology needs. Traditional IT services have their Pros and Cons. Managed Cloud Services offer new opportunities, especially for smaller businesses.

Traditional IT Services

Traditional IT services fall into two main categories: Break-Fix and Managed Services.

Break-Fix

As the name implies Break-Fix is a reactive service. When you have a question or problem, you call for assistance. You pay an hourly or per-incident rate or use a bank of prepaid hours. 

Pros

  • Break-Fix is often affordable, particularly if your IT systems are relatively new and stable. If you have few or occasional problems, you only pay for the services you need.

Cons

  • Break-Fix is reactive. When something goes wrong, your business is likely disrupted until your IT resource can respond, diagnose, and correct the issue.
  • Your costs are unpredictable. 
    • A problem may be a quick-fix or may require significant time to research and resolve.
    • Most break-fix firms charge more per hour or per incident for emergency and off-hours services.
  • You are more likely to have problems. You are not paying your IT firm to monitor your systems and services. You are not likely to identify issues before they become problems that disrupt your business.
  • Impact of disruptions. Beyond the cost of the fix, disruptive ITproblems impact your business in other ways.
    • You may not be able to respond to customers or meet client expectations
    • Your cashflow can suffer if you are unable to invoice or process receivables
    • Your reputation may suffer if you are seen as unreliable
  • Conflicting Interests. While no reputable IT firm wants their clients to have problems, break-fix IT firms rely on service and support calls for their revenue. 
Managed Services

Managed Services provide a wide range of IT administration, management, and support services for a set monthly fee.  Often positioned as a full or partial outsourcing of your IT services, Managed Services provide an active approach to IT services.  Managed Service Providers (MSPs) actively monitor and manage your environment to prevent problems that can disrupt your business. 

Pros

  • Managed Services are proactive. MSPs will focus on best-practice configuration, administration, and security to prevent and mitigate problems.
  • Your costs are predictable. Most MSPs will charge a fixed monthly fee for the set of services they provide. MSPs typically base fees on the number of devices, services, and systems/applications they manage and support.
  • You are less likely to have problems. Good MSPs will identify and address issues before they become disruptive problems.
  • Your MSP is aligned with your interests. MSPs do better when their clients have fewer problems that require intervention. The business model for MSPs relies on efficiencies and economies of scale. Fixing problems is more costly than preventing them, so good MSPs focus on prevention.

Cons

  • Costs. Managed Services appear to cost more than break-fix services.
    • Monthly fees can range from $150 to over $250 per user per month. While this is a budgetary issue for many, and for small businesses in particular, the benefits of well-managed IT services will outweigh the costs.
    • Many MSPs require clients to migrate to a standard set of systems and components. Replacing network and systems infrastructure can add significant costs to the onboarding process.
  • Access. To obtain their economies of scale, most MSPs focus on businesses with 20 or more employees. Very small businesses (VSBs) – those with fewer than 20 people, solopreneurs, and solo practitioners often struggle to access MSPs and their services.

Managed Cloud Services

Managed Cloud Services are similar to Managed Services, but focus on cloud-based services to better meet the needs of small and midsize businesses. While Managed Services focus on your IT “things” – computers, servers, networks, etc., Managed Cloud Services focus on your people – the tools they need to succeed in their roles.

While Managed Cloud Service Providers (MCSPs) will still monitor, manage, and support your technology infrastructure, computers, and on-site systems, our focus is moving as much as possible to the cloud. Reducing on-premise systems dramatically reduces the resources we need to support your business, allowing us to meet your IT needs more cost-effectively.

Pros

  • Your costs are lower. Leveraging cloud services simplifies your IT environment and reduces the resources needed to support your business. Monthly charges for Managed Cloud Services often run 30% or more below traditional managed services.
  • Your costs are predictable. You will pay a fixed monthly fee for Managed Cloud Services based on the scope of services provided.
  • You have fewer problems and disruptions. Leveraging cloud-based solutions reduces the number of things that can have problems. Providing business resiliency and continuity with cloud solutions is more cost-effective.
  • Better access to services. MCSPs leverage cloud solutions to achieve economies of scale that enable affordable services for SMBs, VSBs, and sole practitioners.
  • Your MCSP is aligned with your interests. MCSPs do better when you do better. 

Cons

  • Reliance on vendors. Your MSCP cannot fix a Microsoft 365 outage or issue. With some cloud solutions, your alternatives may be limited. Even so, cloud outages are typically shorter in duration than local IT issues and are not bound by the availability of parts or technicians for on-site work. 

How Does Cumulus Global Help?

At Cumulus Global, our priority is ensuring that you have productive, secure, and affordable Managed Cloud Services, Cloud Forward IT Service and Support, and Security CPR™ Managed Security services.  We focus on how your IT services can best help your business thrive and grow without overspending.

Schedule a meeting with a Cloud Advisor to discuss your challenges, needs, and priorities.  We will help you assess, plan, and execute the right IT services for your business and your budget.

About the Author

Allen Falcon is the co-founder and CEO of Cumulus Global.  Allen co-founded Cumulus Global in 2006 to offer small businesses enterprise-grade email security and compliance using emerging cloud solutions. He has led the company’s growth into a managed cloud service provider with over 1,000 customers throughout North America.

Cumulus Global Recognized on the Channel Futures 2022 MSP 501

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The Annual MSP 501 Ranks Cumulus Global as a Best-in-Class Businesses with Innovation-Driven Growth

2022 MSP 501 WinnerJune 16, 2022 – Westborough, MA – Cumulus Global has been recognized as one of the world’s premier managed service providers on the prestigious 2022 Channel Futures MSP 501.  Selected by the editors of Channel Futures, Cumulus Global ranks at #139 on the list.  This ranking recognizes Cumulus Global for its performance across a broad range of criteria, including sales; recurring revenue and revenue mix; growth opportunities; innovation and solutions; profitability; and customer and company demographics.

“The recognition and inclusion on the 2022 MSP 501 is exciting and an honor,” stated Cumulus Global CEO Allen Falcon. “Our success directly results from the expertise and effort of our team, our cloud computing partnership with clients, and our vendor relations. Together, our cloud forward solutions help clients exceed their business goals and objectives.”

MSPs that qualify for the list pass a rigorous review by the research team and editors of Channel Futures. The team ranks applicants using a unique methodology. Financial performance according to long-term health and viability, commitment to recurring revenue, and operational efficiency are key analysis factors.

“It is not enough to delivery great services,” noted Falcon. “Continually improving our efficiencies and those of our clients creates near- and long-term value.”

The MSP 501 has evolved from a competitive ranking into a vibrant group of innovators focused on high levels of customer satisfaction at small, medium, and large organizations in public and private sectors. As with many firms listed on the MSP 501, Cumulus Global’s services and technology offerings focus on growing customer needs in the areas of cloud, security, collaboration, and support of hybrid work forces.

The complete 2022 MSP 501 list will be available on the Channel Futures website on Monday, June 20th.

Organizations interested in learning more about Cumulus Global’s services can contact us or schedule an appointment with a Cloud Advisor.

Background

“The 2022 Channel Futures MSP 501 winners are the highest-performing and most innovative IT providers in the industry today,” said Allison Francis, senior news editor for Channel Futures. “The 501 has truly evolved with the MSP market, as showcased by this year’s crop of winners. This is the fifth consecutive year of application pool growth, making this year’s list one of the best on record.”

The 2022 MSP 501 list is based on confidential data collected and analyzed by the Channel Futures editorial and research teams. Data collection ran from Feb. 1-April 30, 2022. The MSP 501 list recognizes top managed service providers based on metrics including recurring revenue, profit margin and other factors.

About Cumulus Global

A nationally recognized managed cloud service provider, Cumulus Global helps small and midsize enterprises get more value from your existing IT and new cloud computing services. Translating your business goals and objectives into solutions and services, we co-manage your IT services, support your team, and keep your IT systems in sync with your changing business needs and priorities.

About Channel Futures

 Channel Futures is a media and events platform serving companies in the information and communication technologies (ICT) channel industry with insights, industry analysis, peer engagement, business information and in-person events. We provide information, perspective, and connection for the entire channel ecosystem. This community includes technology and communications consultants, integrators, sellers, MSPs, agents, vendors and providers.

Channel Futures is part of Informa Tech, a market-leading B2B information provider with depth and specialization in ICT sector. Each year, we welcome 14,000+ research subscribers, over 4 million unique monthly visitors to our digital communities, 18,200 students to our training programs, and 225,000 delegates to our events.

Media Contacts

Allen Falcon
CEO, Cumulus Global
afalcon@cumulusglobal.com

 

Allison Francis
Senior News Editor, Channel Futures and MSP 501
allison.francis@informa.com

 

Mandatory Google Workspace Transitions Begin

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Google Cloud PartnerIf you have not completed your transition from G Suite to Google Workspace, Google will automatically begin Google Workspace transitions on January 31, 2022.  You will receive at least 30 days notice of your migration.

Please note that this transition includes significant changes to your subscription options, features/functions, AND PRICING.

Google Workspace

KEY POINTS TO KNOW:

  • Disruption: The transition is non-disruptive to end users and administrators, unless you decide to transition to a subscription with different features.
  • Pricing: Depending on your size and current G Suite services, keeping the same features may result in price increases of 50% to more than 300% (see below).
  • Savings: Cumulus Global can manage your transition, help you select the best Google Workspace for your business, and offer discount incentives for making your transition before the end of the year.

YOUR KEY DECISION:

You need to decide if you want to manage your transition or wait for Google to transition your subscription automatically.

If you chose to manage your transition, we can:

  • Save you money with Google-supported incentive discounts, provided we schedule your transition before the end of the year.
  • Help you select the best subscription plan/mix for your business, ensuring your business and security needs are met at the lowest cost.
  • Schedule your transition at a time that works for you and your team.
  • Educate your IT team on any new end-user, admin, and security features.
  • Support your IT team and end users.

YOUR MANAGED TRANSITION

To learn more about Managed Transitions, please contact us by email, or use the following form:


RESOURCES

In addition to more information in the “About” sections, below, we offer the following resources as well:

About: Automatic Transitions

Google will begin automatic transitions on January 31, 2022.

  • For annual subscriptions, the transition will occur at the end of your current annual or fixed term contract.
  • Companies on “Flex Plan”, month-t0-month services, Google will transition your account as quickly as possible
  • Google will determine the Google Workspace subscription based on your current product features, even if this change results in a significant price increase
  • Automatic transitions are not eligible for incentives or other discounts

About: Pricing Changes

The three biggest impacts on your Google Workspace pricing are your number of licenses,  features, and storage.

License Count

Companies with fewer than 300 users can select from three Google Workspace Business subscriptions.  Companies with more than 300 users will need to select from the two Google Workspace Enterprise subscriptions.  While you can mix and match licenses within the Business and Enterprise tiers, you cannot mix and match Business and Enterprise subscriptions.

Impact for companies with more than 300 users:

  • Companies running G Suite Basic, will see their per user license fees increase form $6 per month to at least $20 per month.
  • Companies running G Suite Business, will see their per user license fees increase form $12 per month to at least $20 per month.

Features

The biggest feature impact for most companies will be their use of Vault.  Companies running G Suite Basic and Google Vault, or running G Suite Business (which includes Vault), will need to transition to Google Workspace Business Plus. Because both Google Workspace Enterprise subscriptions include Vault, any company with more than 300 users will have Vault due to the license count-based migration requirements.

Impact for companies using Vault (with 300 or fewer users):

  • Companies running G Suite Basic plus Vault, will see their per user license fees increase form $11 per month to $18 per month.
  • Companies running G Suite Business, will see their per user license fees increase form $12 per month to at least $18 per month.

Storage

Added storage is no longer an option with Google Workspace. Because you can mix and match licenses within the Business and Enterprise tiers, you may need to transition users to different subscriptions based on their storage needs.

The Google Workspace subscriptions offer the following per-user storage:

  • Business Starter = 30GB, no Shared Drives
  • Business Standard = 2 TB, aggregated across the domain, with Shared Drives
  • Business Plus = 5 TB, aggregated across the domain, with Shared Drives
  • Enterprise Standard = Unlimited storage, with Shared Drives
  • Enterprise Plus = Unlimited storage, with Shared Drives

Other Changes: Vault Former Employee Licenses

Vault Former Employee (VFE) licenses are free or discounted Vault licenses for users that no longer have active G Suite accounts.  With the transition to Google Workspace, VFE licenses are no longer available; VFE licenses will transition to Archive User Licenses (AUL).

Archive User Licenses are NOT FREE. The per user per month pricing for AULs is as follows:

  • AUL – Business = $4
  • AUL – Enterprise Standard = $5
  • AUL – Enterprise Plus = $7

Companies with VFE licenses should plan for alternate retention strategies or potentially significant licensing fees.

 

Webcasts

Spring Cleaning Your Files

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(4/19/2022) – With an understanding of personal file services – OneDrive and My Drive – and domain file services – Shared Drives and Sharepoint, businesses can build a file service that organizes and protects files in ways that make them easier to find, share, and use.

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Beyond Backup

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(3/15/2022) – Map out how restore, recovery, and continuity solutions offer different value propositions for you and your business. Assess total cost and impact when selecting your solution.

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Peak Productivity

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(2/22/2022) – We all have our jobs to do. We want to do well. We want to succeed. We want and need peak productivity.  While “hacks” are trendy, productivity is boosted when we understand how to best use the tools we have.

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Keep IT Simple

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(1/25/2022) – Solid IT services are critical to your success, but they consume your time and budget. Using managed services ensures you have effective and affordable services and frees up time and money to focus on your core business activities.

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2022 is Here; What’s Next?

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(12/14/2021) – COVID-19 triggered fundamental changes in the economy, markets, and society that alter the way we need to operate our businesses and work as individuals. Explore ways small and midsize businesses can better leverage technologies and resources to respond to these challenges.

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Four Cornerstones for Cloud Security

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(11/16/2021) – Four security cornerstones create a solid foundation for your cloud security. Assess your security footprint; Identify security gaps; Prioritize changes and security services.

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(10/19/2021) – Moving to a managed cloud file service can improve access, productivity, and resilience without sacrificing security and budget.

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Manage Cloud Services Primer

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(9/21/2021) – Managed Cloud Services differ from traditional managed and “break-fix” services. Explore how, beyond cost savings, Manage Cloud Services offer strategic security, services, and business advantages.

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Email Security: Good, Better, Best

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eBook | Source: Cumulus Global —
Cyber attacks by email have skyrocketed over the last decade. Email and domain impersonation attacks, fueled by successful phishing attacks, bypass account-centric security. This eBook discusses how to protect your business and domain from Business Email Compromises and impersonation attacks.

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IT Services for Solopreneurs and VSBs

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eBook | Source: Cumulus Global —
IT Services pose unique challenges for Solo entrepreneurs, aka “solopreneurs”, and very small businesses (VSBs). More than having IT services that are “good enough”, solopreneurs and VSBs need technology to save them time, effort, and money.

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