Why Companies Love Managed Cloud As a Service (MCaaS)

Traditionally, cloud computing requires companies to outsource their hardware operations. By implementing MCaaS, organizations can now outsource both the support and management of the systems. The premise behind MCaaS is to take the original concept of cloud computing even further. This has huge implications for companies seeking more resources and support for their existing cloud services rather than just the implementation. 

MCaaS Adds Service to Raw Infrastructure

As the number of companies transitioning to cloud computing services increases, many of them manage and effectuate their services effectively by opting for a special cloud service model called Managed Cloud as a Service (MCaaS).

MCaaS differs from other cloud service delivery models by allowing businesses to benefit by implementing and managing cloud services via the cloud vendor. The cloud vendor forms partnerships with third-party vendors to operate and manage their different cloud services by generating cloud-based software packages and solutions. Therefore, MCaaS has the capability to extend standard cloud service delivery models while helping businesses take advantage of important, quality cloud services i.e., computing resources and faster tech support.

Understanding the Importance of a Specialized Cloud Delivery Model

Businesses can choose from numerous varieties of cloud service delivery models. MCaaS is one of these. It is similar to other cloud delivery models in its ability to make computing resources available on demand. The specialized cloud delivery model, however, makes leveraging multiple services easier for businesses as they don't have to focus on execution or management. Additional benefits of MCaaS include:

• Enables organizations to outsource hardware operations.
• Helps businesses extend other cloud delivery models by outsourcing cloud services management and support.
• Allows companies to get the cloud services implemented and managed by the cloud vendors.
• Overcomes constraints related to skills and resources.

How Does MCaaS Benefit Your Organization?

Many MCaaS vendors view this cloud delivery model as a natural add-on to their traditional cloud computing services. They have been known to market it as "the ultimate in customer service" because of its ability to lessen the burden of management and implementation. MCaaS could be more expensive at the start, but companies are eager to invest, knowing the difference will be in the bottom line.

According to Kevin Chew, group vice president of Managed Cloud as a Service & Technology Alliances for SAP, "A growing number of partners already are exploring the MCaaS model. It's growing meteorically because there are a lot of tailwinds pushing MCaaS. Clients like the model because they get SAP software through 'OPEX' [operational expenditures] and not 'CAPEX' [capital expenditures]. And partners like it because it gets them into the cloud with a recurring revenue stream. Another big advantage of the MCaaS approach is that partners can provide more services around the software rather than just hosting the SaaS offering. There are very low margins and low value in just hosting the software when the partner owns the software license, they can provide all of the service and support around it, too."