How Telcos and Other MSPs Are Succeeding in Cloud

There is little debate: Cloud computing has moved us into a new era of IT. Yet for service providers ranging from telcos to managed services providers (MSPs), the cloud provides both business challenges as well as enormous opportunities.

With the advent and strong adoption of public cloud services, the initial strategy of many telcos and larger MSPs was to build their own public or private clouds. However, as hyperscale clouds have continued to expand their service capabilities, service providers are now shifting their strategies. As their customers are quickly adopting public cloud from the hyperscale providers, forward-thinking MSPs are looking at new ways to add value by offering a variety of services, including:

  • Providing direct connect services between clouds, co-location facilities, and corporate networks.
  • Brokering access to multiple cloud services — public and private — with self-service portals and policy controls.
  • Providing consolidated billing and cost management tools for customers to optimize cloud spend.
  • Offering tools to automate operations and management capabilities.
  • Providing varying levels of managed services for cloud workloads.

The 2016 RightScale State of the Cloud Survey found that 95% of respondents are using cloud. Private cloud adoption increased from 63 percent to 77 percent, driving hybrid cloud adoption up from 58 percent to 71 percent year-over-year.

Today, multi-billion-dollar APAC telecommunications and IT services firm Telstra launched Telstra Cloud Management powered by RightScale to serve the hybrid and multi-cloud requirements of its customers. The Telstra offering helps businesses operate these hybrid cloud environments by providing a single, comprehensive console to view, provision, and manage infrastructure across private and public cloud services.

You can read the Telstra press release where Michelle Bendschneider, Executive Director, Global Products, Telstra, explains, “Over the last few years, Telstra has invested heavily to bring together our leading global network, cloud infrastructure and data centre capabilities with the world’s most popular public cloud platforms, Microsoft Azure, Amazon Web Services, IBM SoftLayer, and VMware vCloud Air. By combining these clouds with the connection and security capabilities of Cloud Gateway and the management tools from this new platform, we can provide customers with the choice, control, and confidence they need to truly embrace the cloud.”

Telstra is among the fast-growing number of service providers that are turning to RightScale to offer enterprise-grade cloud management to customers.

It’s a Multi-Cloud World
Nobody knows more than service providers that enterprises live in a multi-cloud world. Cloud providers such as AWS, Azure, Google, and IBM SoftLayer continue to innovate and reduce costs. The 2016 RightScale State of the Cloud Report found that 82 percent of enterprises have a multi-cloud strategy, and that, on average, companies using cloud are using at least 3 public clouds and 3 private clouds.

Service Providers Are Building Revenues Around Hybrid Cloud
While enterprise are moving quickly to adopt cloud-based solutions, they often struggle to find expert resources to help them achieve their cloud strategies and are increasingly looking to service providers for assistance. RightScale partners with a network of Managed Services Providers (MSPs) and Systems Integrators (SIs) who leverage the RightScale Universal Cloud Management Platform to deliver services to their customers that span public and private clouds as well as virtualized and bare-metal environments.

These service providers are helping their enterprise customers manage hybrid cloud infrastructure with the flexibility to move workloads and applications across the leading public and private clouds as business needs dictate. Paired with value-added offerings including hosting, professional services, and managed services, service providers can offer customers a complete solution for getting their products and services to market faster.

Whether you provide managed hosting, outsourcing, system integration, IT consulting, or other value-added services, RightScale helps service providers capture and retain business. The RightScale platform includes four integrated capabilities that enable a service provider’s customers to manage applications across clouds with a single console:

  • Bring Financial Insight to Customers: RightScale Cloud Analytics provides financial intelligence that facilitates billing and helps optimize public cloud spend.
  • Streamline Cloud Operations and Management: RightScale Cloud Management enables operations team to automate and orchestrate customers’ cloud applications and leverage templates that ensure consistency, reusability, and compliance.
  • Broker Cloud Services: RightScale Self-Service provides policy-controlled self-service access to cloud for customers and their employees.
  • Enable Multi-Cloud Orchestration: RightScale Governance provides multi-cloud identity and access management as well as policy controls.

An MSP using this approach to build revenues is Offis. Based in Australia, Offis works with software vendors, digital agencies, and large brands managing mission-critical applications and web sites. Offis is cloud-vendor agnostic, and therefore ideally placed to give unbiased advice and to deliver the most appropriate options to customers, enabling them to maintain full flexibility across multiple clouds and technologies to future-proof their investment.

Franck Demoiseau, the CEO of Offis, says, “A true innovator, RightScale is building things we haven’t thought of yet that are incredibly useful for our customers and meeting all of our very high demands for multi-cloud management.”

Another MSP that supports hybrid cloud implementations for its customers is Industrie IT, a fast-growing software services firm in Asia Pacific. The company leverages RightScale to help its teams innovate faster, which pays big dividends for Industrie IT clients. The company has significantly increased the speed of innovation for its customers by leveraging RightScale with Rancher and Docker.

New Positioning for Service Providers
Cloud computing has moved us into a new era of IT that provides business challenges as well as enormous opportunities for service providers ranging from telcos to MSPs. As hyperscale clouds continue to expand capabilities, the time is ripe for service providers to shift strategies and find new ways to add value. If you are a telco or MSP service provider looking to create a powerful offering for your customers in the cloud era, multi-cloud management could well be your best path to retaining relevance and control in a shifting landscape while continuing to deliver customer value.

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