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Soaring cloud repatriation costs driving demand for MSPs

The high costs of retrieving data from public clouds are increasing demand for MSPs, according to Roy Illsley (pictured), Chief Analyst of IT Operations at Omdia.

In an interview with Park Place President and CEO Chris Adams, Illsley said that while uploading data to public clouds may be cost-effective and easy, repatriating it incurs additional costs.

As a result, many CIOs are re-evaluating their workloads for compatibility with the cloud.

Illsley said: “There is no way for companies to bring workloads back on-premises from the cloud without a cost.”

This increased demand for MSPs, particularly local ones, is driving growth in the mid-market segment, leading to the 'rise of the MSPs' in 2023.

“MSPs are becoming especially beneficial for organisations that are lacking certain skills, two, the skills they require are in high demand and they can’t afford them, or three, are running out of talent because those with the legacy knowledge are retiring.”