Key Challenges of Cloud Managed Services

June 16, 2023

Cloud management services have become an important part of modern business because they are flexible, scalable, and cost-effective. But using cloud services and managing them well also come with their own set of problems. In this piece, we’ll look at some of the biggest problems that organizations face when setting up and keeping up managed cloud services, as well as ways to solve them.

6 Key Cloud Management Challenges

1. Data Security and Privacy

Data security and privacy is one of the biggest cloud management challenges for companies that are moving to the cloud. When private data is stored in the cloud by a third party, it is very important to protect its privacy, safety, and availability. Organizations have to deal with problems like encryption, access controls, risk management, and following the rules. Strong security measures, like encryption protocols, multi-factor authentication, and methods to stop data loss, can reduce risks and make data more secure.

Challenge: Ensuring the confidentiality, integrity, and availability of sensitive data stored in the cloud.

Example: A healthcare organization migrating patient records to the cloud faces the challenge of implementing robust encryption, access controls, and compliance measures to protect sensitive healthcare information and meet HIPAA regulations. They need to ensure that only authorized personnel can access the data while maintaining its privacy.

2. Vendor Lock-In

Vendor lock-in is a problem that happens when a business depends too much on a single cloud service provider (CSP). It can make it harder to switch providers or use a multi-cloud approach. It can also make it harder to be flexible. To get around this problem, businesses should carefully analyze and choose CSPs based on their own needs. Vendor lock-in risks can also be reduced by using cloud-agnostic solutions and industry-standard formats for data and apps.

Challenge: Avoiding dependency on a single cloud service provider and maintaining flexibility.

Example: A company relying solely on one cloud provider for all their services may face difficulties if they decide to switch providers or adopt a multi-cloud strategy. They need to carefully consider the risks of vendor lock-in and evaluate alternative solutions to prevent being tied to a single provider, enabling them to choose the most suitable services from various providers based on their specific needs.

3. Cost Management and Optimization

Cloud managed services can save you money, but it can be hard to manage and optimize cloud prices. Because resources aren’t being used to their full potential, service plans aren’t the best they could be, or usage habits aren’t being tracked, organizations can run into costs they didn’t expect. To deal with this, organizations should keep an eye on how their resources are being used, set up automated scaling, use cost-optimization tools, and review their service plans regularly to make sure they match their real needs. Taking a responsible approach to cost management makes sure that resources are used in the best way and that costs are kept down.

Challenge: Managing and optimizing cloud costs to avoid unexpected expenses.

Example: An e-commerce business experiences unexpected spikes in cloud costs due to overprovisioning resources during peak seasons, resulting in unnecessary expenses. They need to implement automated scaling, monitor resource utilization, and adopt cost optimization techniques to ensure efficient resource allocation and cost savings without compromising performance.

4. Performance and Reliability

For processes to run smoothly, cloud services need to be reliable and fast. But companies may run into problems with latency, network congestion, and service outages. To deal with these problems, you need to choose a CSP that has a strong system and service level agreements (SLAs). Putting in place redundancy measures, such as deployments in multiple regions and disaster recovery plans, can make services more available and lessen the effect of possible service outages.

Challenge: Ensuring reliable and high-performance cloud services for seamless operations.

Example: A financial institution experiences network congestion and latency issues during high-demand periods, leading to delays in processing financial transactions. They need to implement redundancy measures, such as multi-region deployments or content delivery networks, to improve performance and minimize the impact of potential service disruptions, ensuring uninterrupted service availability.

5. Skills and Knowledge

You need special skills and knowledge to manage cloud services. Many organizations have trouble finding or training the people they need to run and optimize their cloud environments. To get around this problem, companies can invest in training programs for their IT teams, work with cloud experts from outside the company, or connect with managed service providers (MSPs) who have the right skills. MSPs can offer proactive monitoring, problem-solving, and optimization services. This takes the pressure off of businesses to manage their own cloud services.

Challenge: Acquiring and developing the necessary skills to effectively manage and optimize cloud environments.

Example: A small business lacks in-house expertise to manage and secure their cloud infrastructure, which hinders their ability to fully leverage the benefits of cloud services. They can overcome this challenge by partnering with a managed service provider (MSP) that offers specialized skills and expertise to handle their cloud management, monitoring, and optimization needs.

6. Compliance and Governance

It is a big challenge for cloud managed services to stay in line with industry rules and data protection laws. Organizations must make sure that their cloud platforms are compliant with regulations like HIPAA, GDPR, or PCI DSS. Compliance problems can be solved by putting in place the right access rules, encryption, audit trails, and data classification. To keep a strong compliance stance, you need to do regular audits and assessments and work closely with your legal and compliance teams.

Challenge: Maintaining compliance with industry regulations and data protection laws.

Example: A financial services company must comply with stringent regulatory requirements, such as PCI DSS, to protect customer payment data. They need to implement strict access controls, encryption, and regular audits to ensure compliance with industry standards and maintain the trust of their customers.

Wrapping Up

Even though cloud managed services have a lot of benefits, businesses must be ready to deal with the biggest problems that come with using and managing them. By addressing concerns about data security and privacy, reducing risks of vendor lock-in, putting in place effective cost management strategies, making sure performance and reliability, getting the right skills and knowledge, and keeping up with compliance and governance, organizations can get past these problems and use cloud managed services to their fullest potential.

At IT Convergence, we know how complicated and difficult it can be to manage the cloud. We can help organizations deal with the challenges of cloud managed services because we have a wide range of skills and a deep knowledge of cloud technologies. We love the chance to work with you, learn about your unique needs, and come up with solutions that will help you reach your cloud-based goals.

Our team of experts is committed to providing exceptional guidance and support throughout the cloud journey, whether it’s creating strong security measures, optimizing costs, making sure high performance and reliability, or keeping up with industry standards. We are dedicated to building strong partnerships and coming up with new ways to help our clients succeed and grow.

Contact us today to find out how we can work together to overcome the challenges of cloud managed services and pave the way for a seamless, safe, and efficient cloud environment that fits your organization’s needs.

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