Press release

New Research Finds 70% of Enterprises Look to Cloud Managed Services Experts to Accelerate Cloud Migrations and Drive Productivity Gains

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Virtustream, an enterprise-class cloud company and a Dell Technologies business, today announced the findings of a new Pathfinder paper from 451 Research, Demystifying Cloud Transformation: Where Enterprises Should Start.The report reveals that nearly two-thirds of organizations that currently use cloud also leverage some level of managed services; with 71% of large enterprise respondents revealing that managed services will be a better use of their money in the future, and a strong majority saying it allows their teams to focus on more strategic and productive IT projects.

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451 Research, Demystifying cloud transformation: Where enterprises should start 
(Graphic: Business Wire)

451 Research, Demystifying cloud transformation: Where enterprises should start
(Graphic: Business Wire)

The Virtustream-commissioned report examined the significance of managed services for cloud, driven by the increasing complexity of enterprise IT. The report’s findings highlight key areas of managed cloud services that should expect to see growth in the next 12 months, including managed security, migration and integration, cost and performance optimization, and monitoring.

“While enterprise companies are astutely aware of the breadth of cloud options available to them today, they are looking to cloud managed services partners to bridge their own in-house skills and resources gaps, and for access to their deep expertise across cloud assessment, planning, migration and domain experience,” says Melanie Posey, Research Vice President & General Manager, Voice of the Enterprise, 451 Research.

Joy Corso, Senior Vice President and Chief Marketing Officer at Virtustream, adds, “Organizations face a constant challenge to maximize and modernize their IT investments to future-proof their businesses. These new findings from 451 Research underscore the broad benefits enterprises can realize in partnering with a cloud company like Virtustream to orchestrate the cloud migration and management of their mission-critical applications and complex IT environments.”

Hybrid and Multi-cloud are the New Normal

The report notes that 57% of businesses are moving toward a hybrid IT environment, leveraging both on-premises systems and off-premises cloud/hosted resources in an integrated fashion. For public cloud, 72% indicate they are using more than one vendor, with 8% indicating they have more than three public cloud vendors today.

As hybrid/multi-cloud becomes the default enterprise IT architecture, achieving optimized workload migration, integration, and operations will typically require new skills sets. As such, the research findings indicated that enterprises of all sizes will look to utilize managed and professional services to fill gaps in their technology expertise and IT personnel.

The report also shows that backup is a first step into managed services, with 41% penetration among organizations using public cloud, noting that mature public cloud users (and digital transformation leaders) are more likely to already have managed services in place, particularly for operational monitoring and management of applications deployed in cloud. Public cloud platform expertise remains an acute IT skills gap; the difficulty of attracting/retaining IT personnel in this space is also driving organizations toward managed services providers (MSPs) and professional services firms.

Modernizing IT for the Digital Era: Remove Roadblocks with Managed Services

The report finds that most of the current roadblocks aren’t technical but rather operational; mostly mundane but necessary requirements, like meeting regulatory and security guidelines that are etched in process and paperwork. Cloud migrations introduce new challenges, including different approaches to capacity planning, and new, more diverse cost/consumption scenarios.

Most enterprises cited security as the primary challenge to cloud transformation and adoption, with 60% of respondents saying that data protection and security were the most important workload-related IT challenges to address, followed by governance and compliance management as the next biggest challenge at 37%. Again, this can be boiled down to a lack of skills and human resources in-house, a need to transform business process as much if not more than IT operations. Managed services providers can help organizations fill these gaps by blending public clouds and hosted private cloud platforms with existing IT operations.

To learn more about how Virtustream’s xStreamCare services can help your organization accelerate its cloud migration journey and achieve its IT and business objectives, go here.


Throughout the Pathfinder report, 451 Research cites data sources from 451 Research’s Voice of the Enterprise service, which combines industry-leading analysis with insights from its extensive community of IT and line-of-business professionals, drawing on surveys of IT decision-makers with knowledge of their organizations’ cloud strategies and use of managed and professional services. For more information, see the report here.

About Virtustream

Virtustream, a Dell Technologies business, is the enterprise-class cloud company that is trusted by organizations worldwide to migrate and run their mission-critical applications in the cloud. For enterprises, service providers and government agencies, Virtustream’s xStreamCare professional and managed services, and the xStream® Management Platform and Infrastructure-as-a-Service (IaaS) meet the security, compliance, performance, efficiency, and consumption-based billing requirements of complex production applications in the cloud – whether private, public or hybrid.

*Virtustream is a trademark of Virtustream, Inc. Other trademarks may be trademarks of their respective owners.