Fluffy Gold: Managed Service Providers Tap into Cloud Monitoring & Optimization

November 6 2013 | by Zev Schonberg Cloud Cost Management, Cloud Optimization

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Forecasted to reach $20 Billion by 2016, the cloud computing market arguably offers MSPs the most exciting business opportunity of the decade. Even conservative analysts estimate MSPs will manage 15% of cloud spending given current IT trends.
However, as enterprises adopt the cloud, legacy IT spend decreases. To remain relevant, MSPs must evolve to embrace the cloud. This means developing new domain expertise, leveraging economies of scale, and purchasing cloud capacity in bulk. If cloud is already a significant part of your managed portfolio, your goal should be to transform IT resource management into an ROI-driven process.

From Operational IT Management to Cloud Financial Brokerage

MSPs already manage customer deployments, maintenance, and downsizing or retirement when resources are no longer needed. In this operational model, you provision cloud capacity per-customer. Applying a cross-customer approach to monitoring and optimization, however, opens up a whole new world of opportunities. MSPs could buy cloud capacity in bulk, securing lower rates for everyone in the value chain. Take it one step further, and you could resell that same capacity much like an airline resells unclaimed seats it had already sold.


In practice, MSPs need a whole new set of monitoring and optimization tools. Currently, they lack the crucial visibility into cloud deployments before they even begin to analyze any financial implications. That’s where Cloudyn steps into the picture. By combining aggregated capacity purchasing and identifying reselling opportunities, managed service providers can leverage the cloud to increase profit margins dramatically.

Transform Customer Savings into Increased Profit Margins

If you’re familiar with Cloudyn, you know we’re passionate about empowering AWS customers with meaningful insights and actionable recommendations. For MSPs, meaning and action emerge both in the context of individual and aggregated customer deployments.

By leveraging costs savings, usage, and trending insights, MSP’s can:

  • Strengthen managed cloud service portfolio
  • Increase profit margins
  • Define role-based access for specific customers or groups
  • Share reporting and trending data with customers
  • Access segmented or aggregated deployment views
  • Transform customer savings into profit

Managed Customers Console

Cloudyn’s MSP dashboard offers an unprecedented level of granularity, enabling MSPs to focus on a single customer or zoom out to analyze your entire deployment.

Review your managed customer list and sort through it based on spend or saving opportunities. You can log into a specific customer account to see all monitored data as the MSP, or view the account just as a customer would based on access level settings (e.g. blended vs. unblended cost, with/without optimization recommendations).


The above is an example of a report that allows you to zero in on saving opportunities for each and every customer. For example, if your customer is running 20 m1.mediums 24/7 for the last month, purchasing 20 matching Reserved Instances would make much more sense.

Cloud Financial Brokerage Means Everyone Wins

Savvy providers will discover financial brokerage techniques such as cloud arbitrage deliver massive value to everyone. Customers reduce CAPEX and Increase ROI, MSPs build out the service portfolio and increase profitability, and IaaS providers can sell more capacity in bulk.

Getting started is super easy.

Try Cloudyn for free today and contact us to activate your MSP dashboard.

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