Implications Of Amazon Adding Managed Services To AWS

Amazon Web Services recently announced that it is offering managed services. For the uninitiated, managed services in this context is the outsourcing of a business’s information technology infrastructure and support. A list of services offered by AWS MS are:

  • Incident Monitoring & Resolution
  • Patch Management
  • Security & Access Management
  • Reporting

While only focusing on the Fortune 1000 and Global 2000 enterprises, this does present an interesting change in the landscape for Managed Service Providers (MSPs) and internal IT departments. AWS MS is an important part of the AWS environment.

Bali Kuchipudi, product marketing lead at SoftwareONE made this comment on the matter, “For enterprise-grade organizations operating on a single-cloud platform, AWS Managed Services will help them deploy an efficient AWS environment.” He continues by commenting on the scope of the service, “However, companies looking to make the move to the cloud or manage a smaller AWS environment will have to look elsewhere for CSP support, as AWS Managed Services isn’t built to scale down.”

The news release included the reaction of one AWS’s Premier Partner, showing optimism about the move. “We see AWS Managed Services as a key solution in the AWS portfolio, designed to meet the need for a cost-effective, highly controlled AWS environment, where the heavy lifting of management and control can be outsourced to AWS,”. In contrast however, companies are able to use Amazon’s new service without having to depend on Amazon’s partners. Amazon’s push into the managed service space, while expected, introduces a potential disruption in the MSP market and challenges for internal system administrators. To make things more interesting, other cloud providers are introducing new self-serve apps and tools for cloud computing. It doesn’t seem out of the realm of possibility for these other cloud providers to decide to make the same move and start managing their own solutions for enterprises.

While some cloud providers already offer a layer of managed services, the market for MSPs is driving towards multi-cloud solutions. Businesses of all sizes are searching for a combination of different services across cloud platforms. This need for multi-cloud solutions will help MSPs and internal IT departments from yelling “the sky is falling” for now. However, it is an interesting note that a CompTIA study found that managing the competitive implications of cloud computing was the number one concern keeping MSPs up at night.

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