Originally published in MSP Today

Among the variety of innovative technologies that have risen in both use and popularity amidst digital transformation, few have had a larger impact on the world than cloud computing. With the capability to provide both individuals and organizations the ability to access computing resources (i.e. software, hardware, and platforms, as services remotely through the Internet), it’s no shocker that cloud computing technology is flourishing in numerous industries and growing rapidly as a whole.

The cloud computing’s global market value came in at USD 569.31 in 2022 and is expected to reach USD 677.95 by the end of 2023, with experts predicting a CAGR of 20%, bringing the estimated market value to USD 2,432.87 billion by 2030. The swift and tremendous growth can be attributed to the sheer flexibility of cloud computing, offering advantages to practically all sectors and verticals.

However, while the cloud may seem like the perfect piece of technology, it certainly has its drawbacks; the inefficient allocation of resources and spending overall are amongst the most common cloud problems. According to some estimates, the typical company wastes as much as 35% of its cloud budget, which would put USD 126.77 billion of worldwide cloud expenditures under the category of inefficient spending.

This has kickstarted a trend among enterprises to prioritize the optimization of their cloud computing, which, for many organizations, comes in the form of a managed service provider (MSP). While the MSP industry has boomed amidst the beginning of the digital age, they have once again hit a crossroads during the rise of the cloud, as the continuous rise of consumer demands, as well as increased pressure from competition, is forcing MSPs to enhance their cloud management.

“The most notable way MSPs have begun to bolster the cloud efficiency portfolios is through the use of cloud optimization platforms,” said Ben McGahon, founder and CEO of Kalibr8. “These are suites of software tools that MSPs are more commonly leveraging to manage and optimize their cloud resources, providing users with tools that allow them to exercise administrative control. In our case, our platform enables optimization across the largest public clouds.”

These platforms offer MSPs a host of benefits when it comes to improving a client’s cloud efficiency, such as artificial intelligence AI-enabled automated capabilities that can deliver up to 65% in monthly cloud savings. On top of this, cloud optimization platforms can also provide advantages in relation to cybersecurity and real-time monitoring, both of which are significantly emphasized by the modern-day enterprise.

“An often-under-recognized benefit that cloud optimization platforms can provide is regarding the environment and overall sustainability,” McGahon said. “More and more, MSPs and their customers are becoming mindful of carbon reduction advantages due to the fact the other benefits contribute more directly to the bottom line, which is usually the most important facet to any business. The nice thing about managing cloud consumption is that one automatically is also reducing the related carbon emissions and use of energy, water, cooling, and so forth.”

McGahon added that the environmental benefits of cloud optimization platforms are quickly becoming a pivotal piece of the cloud efficiency puzzle, given how socially conscious investors and stakeholders, including employees, board members, customers, regulators, suppliers, and distributors, have become. “They want to know a company’s stance on socioeconomic factors and its sustainability efforts before either investing in a company, working for them, or even buying their products,” McGahon explained.

With sustainability now on the minds of consumers and businesses alike, MSPs would be wise to advertise the environmental benefits of cloud optimization using cloud management platforms.

For example, cloud optimization can help reduce energy use, which is essential given the increased demands for energy due in part to the explosion of data. The International Energy Agency revealed that global data center energy consumption increased by 45% over the past three years, reaching 264 terawatt-hours per year. Thankfully, through cloud optimization, an enterprise can reduce energy consumption by over 30%, which, when compounded with the total amount of businesses nowadays, can make a drastic impact.

Furthermore, cloud optimization can play an essential role in enterprises reducing their carbon emissions and overall carbon footprint. Transitioning to cloud computing can already help a company reduce its carbon emissions by up to 30% for large companies and up to a staggering 90% for small and medium businesses (SMBs). Yet, once again, in relation to data, cloud optimization can amp these numbers up, with a total of 1.6 billion metric tons of GHG emissions possibly being saved in 2024 if cloud data centers are optimized.

Finally, by optimizing virtualization through cloud computing, enterprises can once again reduce energy use and carbon emissions.

“Virtualization allows the organization to create several virtual machines (VMs) and run multiple applications on the same physical server via a hypervisor as one example,” McGahon said.” Organizations can then use a single VM rather than a resource-heavy physical server, which uses less power and has a lower impact on the environment. There are many ways to save money that directly benefit the planet.”

For MSPs, cloud optimization platforms can not only offer an array of benefits for their own organization but can also enhance their clientele enterprises in a myriad of ways, with the environmental advantages being the most recent to come to light.

While it was once solely for monetary reasons, enterprises that optimize their cloud computing can play a positive part in undoing the damage already done to our planet and creating a better future for generations ahead.

“MSPs must ensure they’re not only communicating but advocating for cloud optimization in the name of the environment, as the sustainability movement continues to swiftly grow among their business customers,” McGahon concluded. “It makes all the sense in the world.”