Managed Service Providers Becoming Essential for Regulatory Compliance

The rapid proliferation of cloud services in today’s tech-driven business ecosystem has highlighted both a myriad of opportunities and a wealth of challenges, particularly in regulatory compliance during cloud migration. Such concerns can impede innovation and growth, forcing C-Suite leaders to second-guess much-needed shifts to cloud-based services.

In turn, companies are becoming increasingly reliant on managed services providers (or MSPs) to address the numerous and granular regulatory stipulations that must be considered during a cloud migration process. MSPs offer services that not only streamline the cloud transition but do so while ensuring robust compliance.

The Compliance Labyrinth

The complexities of regulation compliance have affected a significant number of companies to date: For example, over a third of companies now prefer to outsource the management of regulations to MSPs. This may not be a surprise given the substantial repercussions and reputational damage that could result from a single oversight.

Certain sectors, such as finance, healthcare, life sciences, and education, are particularly stringently regulated. Their journey to the cloud is often laden with extra caution. Additionally, businesses with a global footprint need to contend with various international consumer data regulations. From the GDPR in the European Union to the PIPL in China, companies often find themselves navigating regulatory waters that are much murkier than those in the United States. While the allure of global data usage and an expanded market reach is undeniable, they come intertwined with the onus of comprehending and adhering to overlapping, sometimes contradictory regulations.

Compliance and the Cloud

Establishing a cloud infrastructure that mirrors business goals necessitate both the adept leveraging of data and a firm commitment to compliance. Leading cloud providers recognize this dual need. For example, AWS, Azure, and GCP have meticulously woven compliance considerations into their architectural blueprints. They routinely roll out tools and training modules for periodic architecture reviews, ensuring businesses adhere to best practices, including those pivotal to regulatory compliance.

AWS, Azure, and GCP, have also taken proactive measures, such as shared responsibility models, which delineate the demarcation between security and compliance responsibilities that lie with the cloud provider versus the customer. While the nitty-gritty may differ among these providers, there’s a consensus on the cloud provider to oversee the security of the core cloud infrastructure. In stark contrast to traditional on-premises servers, which demand hands-on management from operational teams, these cloud behemoths provide readily accessible insights into compliance guidelines and certification specifics.

MSPs as the Navigators in the Cloud Compliance Odyssey

MSPs are emerging as pivotal for many organizations seeking to navigate regulatory complexities. They can offer various specialized compliance-centric solutions such as Compliance as a Service (CaaS) add-ons, and many MSPs come armed with certifications that bear testimony to their expertise in specific sectors and their nuanced regulatory norms. By aligning with an MSP well-versed in a company’s industry, businesses can ensure they have a seasoned guide to help them tackle regulatory compliance intricacies.

In the grand scheme of cloud-based regulatory compliance, one factor emerges as the linchpin: knowledge. With a holistic understanding and adaptive strategy, businesses can navigate the transformative voyage of cloud migration without faltering on compliance. By doing so, they stand to harness unprecedented volumes of data, turbocharging customer experiences, bolstering operational resilience, and paving the way for agile business maneuvers. This confluence of compliance and cloud heralds a bright future, ripe with opportunities for sustained growth at scale.

Article by Karol See, Head of Product at Cascadeo for Cascadeo AI