Optimizing Public Cloud Providers for AI with Managed Cloud Services and Need for a New Business Model

This IDC Market Perspective highlights the need for managed SPs to invest in critical capabilities that can help optimize customer deployment of AI across public cloud providers, and increasingly agentic AI platform providers, when used with managed cloud services while also needing to adapt their business models with the increased use of agentic AI with these services."Supporting enterprise and organizational use of AI involving public cloud providers with managed cloud services requires managed SPs to make significant investments and adaptations in their business models, particularly with the increased use of agentic AI and agentic AI platforms," says David Tapper, program VP, Outsourcing and Managed Cloud Services at IDC. "Critical investments include determining optimal use of AI across the life cycle of services, adapting FinOps to support agentic AI, finding optimal market position, adapting SLAs and SLOs to be more BPO-like for agentic AI, differentiating managed cloud services with IP and proprietary platforms, emphasizing autonomous delivery and orchestration, and delivering value-add capabilities."