Managed cloud services: when outsourcing outperforms an in-house team

· Blog

The increasing complexity of cloud infrastructures and the dynamic nature of technology are turning their management into a significant business challenge. Companies often face a dilemma: expand their staff of highly qualified engineers or entrust this function to an external Managed Cloud Services provider. The latter option is increasingly proving to be not just convenient, but also an economically and strategically justified solution.

Economic feasibility: OPEX vs. CAPEX

Maintaining an in-house team of cloud engineers entails significant capital and operational expenses. These include not only salaries, but also costs for recruitment, training, certifications, workplace provision, and licensed software for management and monitoring. In the rapidly evolving landscape of cloud technologies, maintaining up-to-date competencies requires continuous investment.

In contrast, Managed Cloud Services allow a significant portion of these costs to be transformed into predictable operational expenses (OPEX). Instead of large, one-time investments (CAPEX) in personnel and tools, businesses pay a fixed or flexible monthly fee for services. This simplifies budgeting and allows for better control over financial flows.

Parameter In-house team Managed Cloud Services
Personnel costs Salaries, bonuses, taxes, recruitment, training, certifications Included in the service contract
Tooling costs Licenses (Azure Monitor, Splunk, Datadog), hardware Included in the service contract or Shared-cost
Cost model Predominantly CAPEX (training, tools) and OPEX (salaries) Predominantly OPEX
Scalability Long hiring and training cycle Flexible resource scaling on demand
Expertise availability Limited by in-house competencies Wide range of experts across various technologies

Access to broad expertise and best practices

No in-house team, even a large one, can possess the full spectrum of knowledge required for effective management of a multi-cloud environment, cybersecurity, DevOps practices, and cost optimization. Cloud platforms (Azure, AWS, Google Cloud, OCI) are constantly updated, with new services and best practices emerging.

Managed Cloud Services providers invest in continuous training for their engineers, maintain current certifications, and have experience working with hundreds of clients. This gives them unique expertise in solving complex problems, optimizing architectures, implementing innovations, and ensuring a high level of cybersecurity. They are already familiar with pitfalls and effective solutions, which helps avoid costly mistakes.

24/7 continuous support and SLAs

Providing round-the-clock monitoring and support for critical infrastructure with an in-house IT department is a complex and expensive task. It requires establishing shift schedules, ensuring staff backup for vacations or sick leave, and investing in monitoring and alerting systems.

Managed Cloud Services providers offer 24/7 support with clearly defined Service Level Agreements (SLAs). This guarantees rapid incident response, prompt problem resolution, and minimized downtime. Businesses gain peace of mind, knowing their infrastructure is under constant supervision by experienced professionals, regardless of the time of day or week.

Focus on core business and innovation

When cloud infrastructure management is outsourced, the internal IT team can focus on strategic initiatives, developing new products and services that directly impact business growth. Instead of routine tasks such as maintenance, monitoring, and updates, the IT department can engage in innovation, integrating new business applications, and implementing digital transformation.

This not only increases the productivity of the internal team but also allows the business to respond more quickly to market changes and gain competitive advantages.

How SL Global Service addresses this

The SL Global Service team, as a vendor-agnostic cloud integrator, provides comprehensive Managed Cloud Services that cover the entire lifecycle of cloud infrastructure. SGS engineers ensure full management of cloud platforms such as Microsoft Azure (including Azure Arc, Stack HCI, Virtual Desktop, Entra ID, Defender, Sentinel, Intune, Site Recovery), AWS (EC2, EKS, RDS, S3, Lambda), Google Cloud (GKE, BigQuery, Cloud Run), and Oracle Cloud (OCI, Autonomous DB). We use a cloud-first approach to ensure maximum efficiency and flexibility.

In the realm of cybersecurity, SGS integrates and manages solutions from market leaders: Cisco Firepower, Fortinet, Palo Alto, Microsoft Defender, CrowdStrike, Trend Micro, Trellix. For proactive monitoring and response, Microsoft Sentinel and Splunk are utilized. This ensures robust 24/7 data and infrastructure protection.

To optimize costs and automate processes, the SL Global Service team implements DevOps practices using Terraform, Ansible, Pulumi, GitHub Actions, and Azure DevOps. This allows for automated deployment, management, and monitoring of resources, as well as applying FinOps principles for continuous cloud cost optimization.

As part of Managed Cloud Services, SGS engineers also provide Backup/DR services using Veeam, Commvault, Acronis, Zerto, and Azure Site Recovery, ensuring high availability and fault tolerance. We manage cloud workstations (VDI) based on Azure Virtual Desktop, Citrix DaaS, and Windows 365, and support network infrastructure using Cisco Catalyst, Meraki, Juniper, HP/Aruba, MikroTik, Ubiquiti, and SD-WAN solutions. Round-the-clock infrastructure monitoring is performed using Prometheus, Grafana, Datadog, and Azure Monitor.

Transitioning to Managed Cloud Services is not just a transfer of functions, but a strategic decision that allows businesses to gain access to advanced technologies, deep expertise, and continuous support, while optimizing costs and focusing on their core business. Before making a decision, conduct a thorough audit of your current infrastructure and needs to choose the provider that best aligns with your goals.

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