Save Money with Managed Private Clouds

May 17, 2022 | Data

There is a common misconception that utilizing private clouds is more costly than using similar alternatives. In many cases, a managed private cloud solution is actually financially beneficial compared to similar solutions. Let’s break down some of the reasons why a managed hosting solution in a private cloud can be a financially smart choice for many businesses.


When a business builds their own infrastructure to support their business, several devices are required to run that network. The costs start to quickly increase if you need to operate a server room and have dedicated staff to manage your network and servers, in particular if you build a highly available and resilient infrastructure with redundant hardware. When hardware needs to be replaced due to aging equipment or the evolution of your needs, those costs fall upon your business. Additionally, the energy costs for running your own servers 24/7 can add up fast.

Managed private cloud providers take care of the hardware expenses for you. They build a highly available, resilient, and secure infrastructure and build a segmented and secure environment for your business and your needs. They make their own hardware purchases, replace or upgrade hardware over time, and complete all maintenance and repairs. The energy costs of running your servers is also taken care of by your private cloud computing providers.


Rather than purchasing expensive software packages and operating system licenses, your provider can provide you the option to convert those large, one-time expenses into a part of your monthly fee to make your costs more manageable and consistent for your business. Another money saving benefit is that your managed hosting provider will manage software and operating system updates for you. This saves your IT team time and ensures that you always have the latest and greatest available updates.


Cybersecurity is more important than ever for every business. A cybersecurity breech can be a very costly event and may require a great amount of time and resources to remediate. Taking the step of utilizing a private cloud provider gives you a very high level of data security that protects your data from cybercriminals. Your managed private cloud provider utilizes highly secure datacenter facilities, enterprise class firewalls, switches, web application firewalls, intrusion detection systems, and more while segmenting your environment from others to protect your business data. Properly securing your own infrastructure can cost tens of thousands of dollars or more just for the hardware, when you consider the labor costs to manage and maintain your security the costs continue to grow. Utilizing a managed hosting provider puts that burden upon your provider, rather than you.

Dedicated Staff

Working with a managed private cloud provider can lighten the tension on your in-house IT budget and workload. Your cloud provider becomes an extension of your team, freeing up your IT team to focus on other aspects of your business. Costly budget items like training, downtime, repairs and replacement of server hardware, new hires, and more can be avoided when you bring a managed private cloud solution to your business.


Compliance is an extremely important thing to consider for any business dealing with sensitive data. For example, if you’re dealing with private health information (PHI), you need to be aware of and adhere to HIPAA Compliance standards. Acquiring and maintaining a certification such as HITRUST costs 10s of thousands of dollars every year to do yourself, plus a large labor effort to continue to manage and maintain those standards as well as to work through the audit process each year.

Many providers, including SmartBase Solutions, have specific certifications, such as HITRUST which will give your customers piece of mind that you’re working with a provider who takes data security seriously and that they are being audited by certified third parties to ensure that they continue to do so. This may eliminate your need to become certified yourself removing a large on-going cost from your budget sheet, or make your own certification path much more straight-forward and less costly.

Private Clouds Can Helps Save Your Business Money

Making the switch to a managed private cloud is a budget-friendly choice for many businesses. The cost savings around items such as hardware, dedicated staff, software, security, and more can impact a business greatly. If you’re interested in discovering if a managed private cloud solution could help save your business money, reach out to discuss your options.

SmartBase Solutions Managed Private Cloud

SmartBase Managed Private Cloud can help save your business money. We become an extension of your team, owning and managing the infrastructure while allowing you to focus on your clients. Give us a call at 612.767.9940 or contact us today to learn more about any of our solutions.

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