What Cloud and Hosting Providers Are
Written by MSP Outpost.
In Short
This category covers the places an MSP puts client workloads that do not live in the client's office: virtual servers, bare metal, object storage and managed hosting. It is broader than most categories, so the first question is which of those you actually need. It is not backup software: a backup product decides what to copy and when, and a storage provider is often just where the copies end up.
What It Does
- Virtual servers. Runs client servers on shared hardware you rent by size and time.
- Object storage. Holds large amounts of data cheaply, most often as a backup or archive target.
- Bare metal. Rents whole physical servers for workloads that need the hardware to themselves.
- Managed hosting. The provider runs the platform and the operating system, and you look after the client.
- Disaster recovery. Keeps standby capacity ready so a client can fail over when their own site is down.
- Networking. Private links, VPNs, firewalls and public addresses between the cloud and the client's office.
When You Need One
Most small MSPs only need object storage, usually as a backup target. Hosting client servers yourself adds on-call duty and billing work you may not be ready for.
Moving a client off an ageing server becomes a real project, and you need somewhere to put it. Pick one platform you know well rather than several you half know.
Hosting can become its own line of business with its own margin. Look at partner terms, per-client billing and where data is held, and keep an exit plan for each client.
What to Look For
Must Have
- Clear Egress Pricing
- Choice of Data Region
- Per-Client Billing
- Immutable Storage
- Role-Based Access
- Server Snapshots
Worth Having
- Partner Program
- Managed Operating System
- Private Networking
- Reserved Capacity Discounts
- An Open API
How It Is Priced
Most of this category is usage based: storage by the amount held, servers by size and hours, with data transfer and API calls sometimes charged on top. Managed hosting is more often a flat monthly fee per server or plan. Watch for egress charges when you restore or move data out, minimum storage periods that bill for data you have deleted, and long reserved terms that trade flexibility for a discount.
Switching
Storage is simple to leave in principle and slow in practice, because a large data set takes time to move and pays egress on the way out. Servers take more work: new addresses, DNS, firewall rules and a cutover window for each client. Before you sign, work out what it would cost to move your largest client out.
Questions to Ask a Vendor
- What does it cost to take all of a client's data out, and how fast can you deliver it?
- Is deleted data billed for a minimum period, and for how long?
- Which regions can I choose, and can I keep a client's data in one?
- Can each client be billed separately, or does everything land on one invoice?
- What does your support cover, and what is left to me?
- How much notice do you give before a price change?
