Imagine transforming your business operations and slashing costs while staying ahead of the competition. The global cloud-managed services market was already a $121.10 billion industry in 2023. Moreover, it is expected to be worth more than $420.70 billion by 2033.

A compound annual growth rate of 13.26% over the next decade depicts that this trend is not just a fleeting opportunity but a massive wave of innovation and efficiency. Leading the charge, North America was successful in dominating the cloud-managed services industry by capturing a 33% market share and reaching $39.96 billion in 2023. 

Businesses all over North America are recognizing this golden opportunity and saving a ton of money by switching to managed services for operations, security, infrastructure management, backup and disaster recovery, and more. Here’s how you can also be a part of this revolution and cut infrastructure costs with cloud-managed services. 

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Cloud-Managed Services 101 Guide

For instance, consider yourself at the helm of a biotech company driven by a mission to develop life-saving drugs. The heart of your business lies in research and development, not in the day-to-day management of IT infrastructure.

Tasks like monitoring servers, ensuring cybersecurity, managing storage, and handling networking issues can be incredibly time-consuming and resource-intensive. You’d rather have your team channel their skills and energy into pioneering research.

This is where cloud-managed services become invaluable. By outsourcing these technical responsibilities, you allow specialized providers to take over the complexities of IT management. They handle everything, including system monitoring, maintenance security, and application management.

This shift allows your biotech firm to stay focused on its primary goal—advancing medical research and innovation—while enjoying a strong, secure, and efficient IT environment managed by experts.

Also Read: Choosing the Right Tools for an Effective Cloud Monitoring Strategy!

How Do You End Up Saving Money with Cloud-Managed Services?

Despite the fact that cloud-managed services are immensely helpful in dealing with the security concerns of businesses, these can really help in cutting down expenses in the future, which could explain why businesses rely on them. But how does this cost-saving take place?

To understand this, we have to dig deeper into the cost structure of implementing an on-premise security management system. Only then can we see how cloud-managed services effectively reduce these expenses.

1. Assessing the Costs Involved in On-Premise Security Management

Some of the key costs you might encounter while having an on-premise security management system in place are as follows:

Hardware and Software Costs for firewalls, intrusion detection systems, antivirus protection, encryption, etc.
Maintenance and Upgrades Regular upkeep, software updates, and tech compatibility checks consume time and money
Personnel Costs Salaries, benefits, and training for skilled IT security professionals
Compliance and Audits Expenses for meeting industry standards, regular compliance checks, and audits.
Physical Security Costs for access control systems, surveillance cameras, and secure facilities to protect servers and data centers
Downtime and Recovery Costs associated with downtime, data recovery, and potential reputation damage, requiring robust disaster recovery plans
Insurance Premiums for comprehensive cyber insurance coverage, are particularly high for businesses at significant risk of cyber threats

2. How Does Cloud-Managed Services Cut These Costs?

Sure, cloud-managed services are efficient but they can even save you from a lot of unnecessary costs. How? Let’s understand.

1. Savings from Hardware and Software Costs

When you opt for cloud services, the need to invest in expensive hardware and software is automatically reduced. Now everything is under the responsibility of cloud service providers, who supply and maintain the necessary equipment and applications.

Consequently, this saves you from the costs of buying and updating firewalls, intrusion detection systems, or antivirus software. For businesses and organizations, this also means that they don’t have to worry about the constant need to update software licenses to make sure everything is compatible with the latest technology. 

2. No More Expenses on Hiring Cloud Experts!

Recruiting and training associated IT security personnel could cost a considerable amount of money. Outsourcing to cloud-managed services means that a company will have a pool of professionals handling its IT security needs. 

The result is that you do not need additional human resources to employ, which definitely is a great relief considering the cost of salaries, allowances, and training. Also, you do not go through the troubles of having to manage human resources while you continue to have the best talents in cybersecurity assisting you.

3. Minimal Downtime = More Cost Savings!

According to a recent report, unplanned downtime now charges Fortune Global 500 companies an astonishing 11% of their yearly turnover, which is roughly $1.5 trillion. You definitely don’t want to face that kind of loss for your business. That’s why switching to cloud-managed services is crucial.

Cloud-managed services offer solid disaster recovery and business continuity plans. As a result, your data is backed up and can be swiftly restored in case of a breach or failure. Therefore, reducing the downtime and its associated costs.

4. More Savings on Physical Security Equipment

Protecting physical servers and data centers is a challenging task and consumes much time, money, and effort. It includes the implementation of an access control system and surveillance cameras. 

That being so, with cloud-managed services you no longer need to invest heavily in physical security measures at your own location. It’s a straightforward way to save money on security infrastructure while keeping your data safe. 

Also Read: Enterprise Cloud Migration for Edtech: Expectations vs. Reality

The Bottom Line: On-Premise vs Cloud-Managed Services

By availing managed services through the cloud, one can save a lot of money as compared to managing the matters related to IT security through an on-premise model. They do not require extra capital expenditure on new tangible assets such as equipment and machines, and other maintenance resources, and do not involve hiring of new staff or personnel.

Cloud services ensure that you obtain reliable compliance as well as audit solutions, with strong measures on physical and data security, and less business disruption as a result of dependable disaster recovery solutions.

Together, all these factors result in the avoidance of huge costs while gaining first-rate security and performance, which frees up more resources to be directed toward your main business functions.

Hurix Digital‘s Cloud Security Services offers in-depth evaluations of your current security setup, working closely with your IT team to envision and build a future-proof security operations framework. Our customer-centric approach ensures that your business needs and workflows are at the heart of our security solutions.

Book a discovery call with us today to learn more!