Back to Blogs

How AIOps Helps Managed Service Providers (MSPs) Optimize Costs for Their Customers

October 11. 2022
ai powered itops tool

As technology continues to develop and evolve, businesses implement the newest tools to achieve the best outcomes. However, for improved outcomes, businesses also need to ensure that processes are not time-consuming and do not require as much human intervention as before. This is where managed service providers (MSPs) and AIOps solutions benefit the business outcomes. Most companies outsource certain management tasks like determining and managing processes and functions to MSPs. This reduces the need for permanent staff and thus, reduces expenses. When MSPs utilize AIOps to automate specific processes, it ensures error-free functionality, which again helps in IT cost optimization. The best AIOps platforms software makes sure that MSPs can implement the solutions to optimize business processes at a low cost and within a short window of time. Outsourcing to MSPs is the best option for companies, especially if the business is under certain budget constraints. MSPs will adhere to these constraints and ensure that the performance levels of applications, quality of services, and provision of products remain the same, just at affordable rates, and thus, draws in more customers.

Increase in Cost-Effective Operations Through AIOps Solutions for Managed Service Providers (MSPs)

AIOps is primarily focused on analysis, automation, and optimization. While there are far more complex processes involved in the implementation of AIOps solutions, these are the basic tools that MSPs can use for the benefit of a particular business. In recent times, a part of IT infrastructure managed services has been involved in cloud enablement services. This process of digital transformation is essential as the technology is changing and so are the business needs. To keep up with the evolving customer demands, and market expectations, businesses are using cloud computing, and most are completely converting the existing IT architectures to cloud-native architectures. MSPs can assist in this migration and transformation. However, once the environment has changed, operations have to adapt. It is impossible to do manually, and human intervention, in this case, would often involve an increase in errors. This would then increase operational costs as there is an expense to implementing the necessary remediation solutions.

To reduce costs, cloud optimization is necessary. If the cloud infrastructure is optimized, using AIOps solutions, then applications and processes will be easier to integrate within it, and there will be no additional expenses involved. When MSPs are tasked with ensuring a smooth transition of data centers from an on-premises IT architecture to a cloud-native one they often work with cloud engineers. These experts are not only skilled in cloud enablement services but are also focused on controlling operations costs. This is done by determining the scalability and checking if the system can scale up to suit the necessary analytics and the data collected. These cloud engineers, along with the MSPs also utilize AIOps solutions for system monitoring. While system monitoring during and after digital transformation to cloud-based systems usually means checking for possible anomalies or deviations from the expected performance levels, in this case, it is to monitor consumption. AIOps tools can perform a thorough analysis to determine the nature of consumption and utilization so that there are no unnecessary applications or functions involved that can drive up operational costs.

AIOps solutions used by MSPs are focused on optimizing the utilization and related processes. This enables the MSPs to ensure that the operations teams are able to get the best outcomes and provide enhanced services to customers through cloud adoption. Optimized utilization ensures reduced costs, and it also increases the efficiency of operations.

Reduction in Network Costs for Improved Efficiency in Business Processes

Every business has to deal with the intricacies of IT networks that host and allow the transfer of data. To ensure that these processes are hassle-free, IT automation with AI is necessary. But that is not all that AIOps implementation can offer. When MSPs utilize AIOps solutions for the optimization of network activities, they can also monitor the costs involved in business processes. If network costs are analyzed and managed according to the needs of the business, it will be easier for the business to generate desired outcomes even while working with budget constraints.

The networks within a business infrastructure generate huge volumes of data. It can get challenging to process all data and store it as necessary. Operations teams are unable to do this manually and other than that, even partially manual processes can result in errors and anomalies. If network management is outsourced to MSPs, they can implement AIOps tools to optimize and automate specific processes within the networks. This would ensure error-free analysis of data, predictive analytics that would assist in the collection, storage, and usage of data, and increasing inefficiency. Automation also reduces the costs involved, thus allowing the business to focus funds elsewhere.

Automation of certain functions allows cloud managed service providers to not require as much human intervention as earlier. Operations teams can work on other critical processes. While this means reduced costs as there is no error to resolve, it also results in cost-effective processes as businesses do not need to pay a permanent staff for these tasks. It does not mean less work for operations teams; just that their labor may be required elsewhere, reducing the network costs of maintaining the IT infrastructure.

Since automation results in no human intervention, certain companies or even MSPs have a hard time accepting it. This is primarily because they prefer to have full control over the networks. However, AIOps automation and optimization do not mean loss of control. It simply increases efficiency and reduces error but retains the same level of visibility. This is why the network costs decrease significantly without affecting the outcomes and businesses can continue to provide services at optimized costs to their customers.


Most businesses outsource parts of their tasks to MSPs to achieve IT Cost Optimization and these MSPs are implementing AIOps artificial intelligence for IT operations. Such solutions can provide greater benefits for businesses. If costs are reduced and managed through optimization, then customers will prefer that because it means they don’t have to compromise on efficiency. This is exactly what the current managed service providers ensure with the help of AIOps.

request a demo free download