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Service providers need to realize that the Cloud business is different than their earlier offerings - traditional hardware or solution and infrastructure managed services. They must transform quickly and direct their focus on modern applications, platform-as-a-service (PaaS), or containers and PaaS rather than just on infrastructure management. The only way forward is to incorporate agility in operations, leverage new-age toolset, establish governance, increase optimization, and invest in security as an integral part of managed services.

Functional sourcing offers service providers a chance to scale their business without increasing overall costs.