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Gartner: 5 MSP Business Models for Public Cloud Infrastructure

Thousands of MSPs are marching toward public cloud managed services. But only 20 of those companies qualified for Gartner’s 2018 Magic Quadrant for Public Cloud Infrastructure MSPs.

We’ll share deeper details about all 20 MSPs in that Magic Quadrant over the next few days. But in the meantime, here’s a look at the five major types of MSPs that offer public cloud infrastructure services, according to Gartner. The five categories are:

1. Hyperscale-only MSPs: These MSPs were either founded specifically to provide services on hyperscale IaaS, or pivoted to entirely focus their business on these services, Gartner says. The targets, naturally, are AWS, Microsoft Azure and/or Google Cloud Platform. Example MSP: 2nd Watch.

2. Hybrid hosters: These MSPs are traditional managed hosting providers; however, they also have a hyperscale cloud management practice, and indeed they may now be focused on that business, Gartner says. Example MSP: LogicWorks.

3. Hybrid MSPs: These vendors offer a variety of services, not all of which may be cloud-related. However, they have a hyperscale cloud-related managed and professional services practice. They are typically system integrators (SIs), value-added resellers or IT outsourcers, often with a local or regional focus. Some may have a focus on particular applications, Gartner says. Example MSP: Bespin Global.

4. Data Center Outsourcing (DCO) providers: These vendors offer traditional DCO services, but might now also have practices that focus on delivering managed and professional services for hyperscale cloud infrastructure management, Gartner says. Example MSP: Infosys.

5. Systems Integrators: These large, global SIs have practices that focus on delivering value on top of hyperscale cloud providers, including managed and professional services. They typically also offer value beyond the infrastructure layer due to their application expertise. They may also be able to assist with broader transformation initiatives, including business process redesign and organizational restructuring, Gartner says. Example MSP: Accenture.

Admittedly, some MSPs fit into multiple categories. And we’ll be back in the next few days with a look at all of the companies in the Gartner Magic Quadrant for public cloud infrastructure MSPs.

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