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  3. What Are Managed Services? | How Do Managed Services Drive Business Growth?

What Are Managed Services? | How Do Managed Services Drive Business Growth?

  • By Gcore
  • July 6, 2023
  • 14 min read
What Are Managed Services? | How Do Managed Services Drive Business Growth?

Managed services (MS) refers to the outsourcing of tasks remotely to a third-party company known as managed service providers (MSPs.) For instance, when an e-commerce business experiences growth, its IT infrastructure can become more complex to meet the demands, requiring additional expertise and workforce. By having managed services, businesses can leverage this solution to effectively handle their daily operations, saving valuable resources that can be allocated towards expanding the company. By the end of this article, you’ll understand how managed services work and what to consider when selecting an MSP to take your business to greater heights.

What Are Managed Services?

Managed services means that an external provider takes charge of providing and managing specific IT services for clients. These managed services are typically governed by a service-level agreement (SLA,) which outlines the engagement’s scope, performance expectations, and terms.

The concept of managed services emerged due to the growing dependence of businesses on IT infrastructure in the late 1990s. As a result, there was a need for specialized knowledge in managing and supporting these IT systems. Managed service providers (MSPs) filled that gap and continue to do so.

Why Use Managed Services?

As a business owner, working with a managed service model allows you to delegate tasks and responsibilities to experienced professionals. By hiring an MSP, you can benefit from their specialized skills and resources, giving you peace of mind and allowing you to focus on other important aspects of your business, such as innovation. We will discuss the benefits of managed services in depth later in this article.

How to Set Up Managed Services

When providing managed services, the following is a typical set-up process.

  1. Assessment. The MSP conducts an initial assessment of the client’s IT environment, infrastructure, and requirements. This helps the MSP to understand the current state of the systems and identify areas that need improvement.
  2. Planning. Based on the assessment, the MSP develops a comprehensive plan tailored to the client’s specific needs. This plan outlines the services to be provided, the scope of work, and the associated costs.
  3. Implementation. Once the plan is approved, the MSP begins implementing the necessary changes and deploying the required technologies. This may involve setting up hardware and software, configuring networks, and establishing security measures.
  4. Monitoring and maintenance. After the implementation, the MSP continuously monitors the client’s systems, applications, and networks. Regular maintenance tasks, such as updates, backups, and patches, are performed to ensure optimal performance and security.
  5. Support and help desk. MSPs provide ongoing technical support to clients, often through a help desk or service desk. They handle user inquiries, troubleshoot problems, and resolve issues remotely or on site, depending on the severity.
  6. Reporting and analysis. MSPs give clients reports on IT system performance, including uptime, response times, and security incidents. This helps analyze trends, identify areas for improvement, and make strategic recommendations.

The delivery of managed services can happen either remotely, on site, or using a combination of the two, depending on the nature of the services and the client’s requirements. Many routine maintenance and support tasks can be performed remotely, allowing MSPs to efficiently manage multiple clients’ systems from their own facilities. However, certain situations may require on-site visits, such as hardware installations or troubleshooting complex issues that cannot be resolved remotely.

Types of Managed Services

There is no “one size fits all” solution in managed services. It means that there are different types of services available, and they can be customized to meet various needs related to IT infrastructure and operations. Some MSPs offer multiple of these types of services. Here are some common types of managed services available:

  • Network management. This involves monitoring and taking care of the client’s network infrastructure, which includes routers, switches, firewalls, and wireless access points. The end result is a stable, secure, and high-performing network.
  • Server and infrastructure management. Sever and infrastructure management refers to maintenance and assistance required to manage physical and virtual servers, along with essential infrastructure elements like storage, backups, and disaster recovery solutions.
  • Security management. Security management includes tasks such as identifying potential threats, managing vulnerabilities, detecting and preventing intrusions, responding to security incidents, and the overall management of security risks. This helps protect the client’s systems and data from potential dangers and unauthorized access.
  • Cloud management. This includes managing and optimizing cloud infrastructure, services, and applications, ensuring scalability, cost efficiency, and reliability in cloud environments such as public, private, or hybrid clouds.
  • Application management. Application management involves taking care of and assisting with particular applications or software used by the client, which includes setting them up, adjusting settings, keeping them up to date, and fixing any issues to make sure that all applications are available and work well.
  • Desktop and end-user support. This type of managed service provides technical support to end users, including help desk services, device management, software installation and updates, and user training and assistance.
  • IT consulting and strategy. Managed service providers may offer IT consulting services to assist clients in developing technology strategies, aligning IT with business goals, and making informed decisions about IT infrastructure, applications, and security.

Here are a few examples of different industries that benefit from using managed services, based on their specific needs and requirements:

Managed serviceIndustries that may benefit
Network managementTelecommunications, financial services, retail
Server and infrastructure managementHealthcare, education, manufacturing
Security managementBanking and finance, government, information technology
Cloud managementE-commerce, software development, media and entertainment
Application managementHealthcare, hospitality, logistics
Desktop and end-user supportEducation, professional services, non-profit organizations
IT consulting and strategyReal estate, construction, legal services

A growing variety of services are being offered by MSPs, particularly when it comes to software-based solutions like business applications. One example is the platform-as-a-service (PaaS) model, which is a type of cloud computing that gives developers a platform and environment to create apps. For instance, think of apps like Airbnb or Pinterest. These apps rely on the PaaS model, which is important for making these technologies accessible to more people.

Here are the patterns and growth rates of the different types of managed services that MSPs sell to the market in 2022:

CompTIA’s trends of managed services

As depicted in the graph, growing businesses need to depend on various managed services to achieve success amidst market challenges and competition. In addition, cybersecurity has gained in importance, prompting companies to allocate additional resources to safeguard their operations.

What Are the Benefits of Managed Services in Business?

Let’s now explore the ways in which managed services benefit businesses. The major benefit of MSPs is that they take care of your specialized technology applications’ day-to-day operations, allowing you and your team to concentrate on boosting revenue or sales. Let’s review some of the less obvious benefits of managed services.

  • Saves you money. Managed services help businesses reduce costs by eliminating the need to invest in expensive IT infrastructure, equipment, and personnel. Instead of hiring and training a large number of new employees, businesses can rely on the expertise, efficiency, and resources of the managed service provider (MSP) at a predictable, regular cost.
  • Increased productivity. By relying on an MSP to handle IT operations, rather than allocating resources to hire experts, businesses can dedicate more attention to areas of improvement, resulting in enhanced efficiency and productivity. The MSP’s expertise and experience in the field guarantees optimized IT operations and the prompt resolution of any issues that may arise.
  • Proactive support and monitoring. Managed services provide proactive monitoring of IT systems, identifying potential issues before they become major problems. This proactive approach minimizes downtime, enhances system reliability, and improves overall business performance.
  • Enhanced security. MSPs provide strong security measures to safeguard businesses against cyber threats. These measures include monitoring for potential threats, managing vulnerabilities, and responding to incidents. Regular updates, patches, and data backups are performed to ensure the safety and reliability of business data.
  • Scalability and flexibility. Managed services provide your business with the flexibility to scale your IT infrastructure and services based on changing business needs. Whether you are expanding or downsizing your operations, MSPs can quickly adjust resources to align with your requirements.
  • Improved focus on core business. By partnering with MSPs, your business can concentrate on its core competencies and strategic goals while having access to skilled experts. MSPs also handle data compliance and auditing, freeing up your valuable time to focus on driving innovation and customer satisfaction. This ultimately leads to business growth without worrying about the complexities of compliance.

Evidently, managed services offer businesses many benefits. Let’s now discuss specific use cases to determine if an MSP is something that you need for your business.

Use Cases of Managed Services

Managed services have a broad range of applications across diverse businesses, industries, and sectors. These services can be customized to meet the unique needs and requirements of your specific business, ensuring that the solution provided is tailored to enhance efficiency, security, and productivity. Let’s look at some common examples of use cases of managed services.

#1 Small and Medium-Sized Businesses (SMBs)

Small and medium-sized businesses (SMBs) can greatly benefit from managed services tailored to their specific needs. One key area where managed services can be advantageous is IT infrastructure management and support. SMBs often lack the in-house resources and expertise to manage their IT systems optimally, which can result in downtime and inefficiencies. By outsourcing IT infrastructure management to a managed services provider, SMBs can ensure reliable and efficient technology operations. The provider takes care of tasks such as server management, network monitoring, and software updates, allowing the SMB to focus on its core business activities.

Here are some examples of SMBs that can benefit from managed services:

  • Accounting firm. An MSP can handle the management of their servers, network, and software updates, ensuring that everything runs smoothly while also keeping their data secure and compliant with regulations.
  • Marketing agency. An MSP can manage a marketing agency’s cloud servers, data storage, and software deployments, allowing the agency to focus on their marketing campaigns and client services.
  • Law firm. Some beneficial managed services include threat monitoring, vulnerability management, and incident response services to protect the law firm’s sensitive client data and ensure compliance with data privacy regulations.
  • Healthcare clinic. An MSP can provide remote technical assistance to clinic staff, troubleshoot software and hardware issues, and ensure the smooth functioning of their healthcare information systems.
  • Retail store. Monitoring the network infrastructure, setting up firewalls and intrusion detection systems, and performing regular security audits to protect customer data and prevent cyber threats are some helpful managed services for retail stores.

The examples mentioned are just a few instances of the many small and medium-sized businesses (SMBs) that can benefit from using managed services. Services like IT infrastructure management, data backup and recovery, and help desk support are important for SMBs to operate more smoothly in competitive markets. Now, let’s explore another industry that can also benefit from these services: the healthcare industry.

#2 Healthcare Industry

The healthcare industry can greatly benefit from managed services that cater to its unique needs. These services provide crucial support in managing electronic health records, ensuring data security and compliance and maintaining the performance of medical devices and systems. Here are some key use cases of managed services in the healthcare industry:

  • Electronic health record (EHR) system management. An MSP provides secure storage and accessibility of patient information and efficient retrieval and updating of medical records.
  • Security and compliance services. An MSP ensures the safety of patient data by protecting it from cyber threats. Additionally, they make sure that the healthcare organization follows the necessary regulations, including ensuring patient privacy and confidentiality so that sensitive information remains protected.
  • Remote monitoring and maintenance of medical devices and systems. Medical devices are continuously monitored to make sure they are performing at their best. Regular maintenance is performed promptly to avoid any disruptions. This ensures that critical healthcare systems are always available and reliable for use.

There has been an increase of 26.6% in downloads of health applications and prescription apps in the United States in the first half of 2021. This surge in downloads is attributed to users seeking convenient ways to order repeat prescriptions through their mobile devices in the wake of the COVID-19 pandemic. When it comes to health apps, managed services play a vital role in providing advantages such as patient data protection, regulatory compliance, and improved healthcare system performance.

#3 Financial Services

In the financial services industry, it is common for companies to face numerous cybersecurity threats. A security breach can result in significant losses not only for the company but also for the affected clients, as it can lead to financial theft and identity fraud. Making sure that the most up-to-date and powerful IT security measures are in place is a top priority.

Managed services come into picture to provide strong IT security to protect financial assets and personal information. Here are some key benefits of managed services in the financial services sector:

  • Network and data security services. Managed services provide robust security measures to safeguard sensitive financial information and prevent unauthorized access. This includes implementing firewalls, intrusion detection systems, and encryption techniques to protect data from cyber threats.
  • Compliance management services. Financial institutions need to comply with industry regulations, such as PCI DSS (Payment Card Industry Data Security Standard) and GDPR (General Data Protection Regulation.) Managed services offer compliance management solutions to ensure adherence to these regulations, helping businesses avoid penalties and maintain trust with customers.
  • Disaster recovery and business continuity services. Downtime can be costly for financial institutions. Managed services provide disaster recovery and business continuity solutions, including regular data backups and the creation of backup systems, to minimize disruptions and ensure uninterrupted operations even in the event of unexpected incidents.

Online and mobile banking usage is projected to continue to rise. For example, 22 million individuals in Latin America will adopt online banking in 2024 alone, leading to a total user base of 196 million in the region—almost double that of 2020.

By leveraging managed services, financial service providers can focus on their core functions while relying on experts to manage their network security, compliance, and business continuity. This allows them to operate more efficiently, mitigate risks, and maintain the trust of their clients.

#4 Manufacturing Sector

In the manufacturing sector, managed services play a crucial role in improving operations and maximizing production. Companies in this industry often rely on specialized technology systems and processes to meet production demands and maintain competitiveness. Let’s explore some of the specific benefits and use cases of managed services in the manufacturing sector:

  • IT infrastructure management. Managed services providers offer expertise in managing and optimizing the IT infrastructure of manufacturing companies. This includes activities such as server management, network monitoring, and software updates, which help to enhance efficiency and minimize any potential downtime that could disrupt operations.
  • Monitoring of industrial automation and control systems. As automation becomes increasingly prevalent in manufacturing, the need to monitor and maintain these systems becomes crucial. Managed services providers offer continuous monitoring to identify any issues or anomalies in the automation and control systems. By promptly addressing these issues, they ensure smooth, safe, and uninterrupted operations.
  • Data analytics and predictive maintenance. Managed services providers in the manufacturing sector often offer data analytics and predictive maintenance solutions. By analyzing data collected from various equipment and systems, manufacturers can gain valuable insights into equipment performance, identify maintenance needs in advance, and optimize maintenance schedules. This proactive approach helps to reduce unplanned downtime, extend equipment lifespan, and reduce maintenance costs.
  • Smart manufacturing. The global smart manufacturing market was valued at 97.6 billion USD in 2022 and is projected to reach 228.3 billion USD by 2027, growing at a compound annual growth rate of 18.5%. Smart manufacturing utilizes advanced technologies to improve traditional manufacturing processes. By adopting managed services, manufacturers can capitalize on this expanding market, increase productivity, minimize downtime, and achieve cost efficiency.

Managed services providers offer expertise and support, allowing manufacturers to focus on their core strengths while relying on secure and dependable IT solutions that contribute to efficiency and competitiveness.

#5 Retail Industry

In the retail industry, managed services offer essential support to streamline operations and enhance customer satisfaction. Whether focused on maintaining a reliable and secure e-commerce platform, optimizing inventory management and supply chain, or providing efficient customer support, managed services play a crucial role in helping retailers thrive in today’s competitive market. Let’s explore some of the specific benefits and use cases of managed services in the retail industry:

  • E-commerce platform management and support services. Ensuring a reliable and secure online presence is vital for retailers to attract and retain customers. Managed services can assist in managing and maintaining e-commerce platforms, enabling smooth transactions and protecting sensitive customer data.
  • Inventory management and supply chain services. Effective inventory management helps retailers to optimize stock levels, avoid out-of-stock or overstock situations, and minimize costs. Managed services can provide valuable insights and support in streamlining inventory management processes.
  • Customer support and help desk services. Providing excellent customer support is essential for building strong customer relationships. Managed services can offer efficient customer support and help desk services, addressing customer inquiries and resolving technical issues promptly.

Global retail e-commerce sales amounted to approximately 5.2 trillion USD in 2021, with expectations of significant growth in the coming years, reaching over 8 trillion USD by 2026. As retailers rely more on online platforms to connect with customers, managed services become crucial in maintaining a reliable and secure online presence. These services assist retailers in managing their e-commerce platforms, ensuring seamless transactions and safeguarding customer data.

What Is a Managed Service Provider (MSP)?

A managed service provider (MSP) is a company that provides managed services to clients, overseeing and remotely managing the IT infrastructure or end-user systems of an organization. MSPs have expertise in offering IT solutions to businesses across different sizes and industries. They act as a trusted partner and take responsibility for managing and supporting their client’s IT infrastructure, systems, and operations.

What Factors Should You Consider When Choosing an MSP?

Choosing the right managed service provider (MSP) is crucial for the success and efficiency of your business operations. With so many options available, it’s important to consider certain factors that will ensure you make an informed decision. In this section, we will explore what to keep in mind when choosing an MSP so you can confidently select an MSP that aligns with your business needs and goals. Here is a checklist to review when choosing an MSP:

  1. Expertise and specialization. Look for an MSP with experience and expertise in your industry or with your specific technology requirements.
  2. Service level agreements (SLAs). Evaluate the SLAs offered by the MSP to ensure that they meet your business requirements, including response times and issue resolution procedures.
  3. Scalability and flexibility. Consider whether the MSP can scale their services to accommodate your business growth and adapt to changing needs.
  4. Security measures. Assess the MSP’s security protocols, including data protection, vulnerability management, and incident response.
  5. Reputation and references. Research the MSP’s reputation in the industry and seek references or testimonials from their existing clients.
  6. Cost and value. Compare the pricing models of different MSPs and evaluate the value they provide in terms of services and support.
  7. Proactive support and monitoring. Determine how the MSP proactively monitors your systems and provides ongoing support to minimize downtime.
  8. Communication and reporting. Ensure that clear and transparent communication channels are established. Check that regular reports are provided to track the performance and progress of the MSP’s services.

By considering these important factors and conducting thorough research, you can make a well-informed decision when choosing a managed service provider (MSP) that will effectively meet your business needs and support your growth. When consulting with MSPs directly, ask plenty of questions and ensure that all details are clearly understood and agreed upon by both parties. Investing in technology services can be daunting and sometimes confusing, but as a business owner, it’s crucial to prioritize obtaining the best solutions for your business while also staying within your budget. In the next section, we will explore how Gcore’s managed services can assist you in growing your business.

How Do Gcore Managed Services Help Businesses to Grow?

At Gcore, we provide a wide range of managed services to cater to the unique requirements of businesses in different sectors. In this section, we will discuss our platform-as-a-service (PaaS) offering, which is a type of managed service specifically designed to offer developers a platform for creating and launching applications. With the use of PaaS, your business can depend on the service provider to handle the management and maintenance of the platform, allowing your developers to focus on creating and enhancing applications. Now, let’s explore the key features and benefits of Gcore’s platform-as-a-service (PaaS) offering.

Gcore’s Managed Kubernetes

Managed Kubernetes refers to a service that takes care of the management and operation of Kubernetes clusters. Kubernetes clusters are a collection of servers, also known as nodes, that work together to run applications in a coordinated and efficient manner. Each node in the cluster has its own resources, such as processing power and memory, which can be used to run different parts of your applications. Kubernetes manages these clusters by distributing the workload across the nodes, ensuring that applications run smoothly and can scale easily as needed. It takes care of tasks like deploying, updating, and monitoring applications, making it easier for businesses to manage their software in a reliable and scalable way.
At Gcore, we help you to deploy, manage and scale Kubernetes clusters with ease. Here are some of our service’s advantages that set us apart:

  • Bare metal support. A bare metal server is a form of cloud service in which the user rents a physical machine from a provider. This machine is dedicated to the user and not shared with any other tenants. Bare metal support means running containers directly on operating systems without any virtualization layer. This approach enhances speed and efficiency, reducing delays and ensuring optimal performance. It also eliminates disruptions caused by neighboring virtual machines (VMs.)
  • No-fee SLA-backed cluster management. In terms of managing production-level clusters, our service provides a guarantee of 99.9% service level agreement (SLA) at no additional cost. This is different from our competitors who either do not offer an SLA or charge a fee of $70 or more per month for it. With our service, you can have peace of mind knowing that your clusters will be managed and maintained with a high level of reliability and uptime, without any additional expenses.
  • Great value Gcore instance prices for worker nodes. Our pricing provides excellent value by offering worker nodes at competitive prices that are equivalent to prices for our virtual instances and bare metal servers. This ensures that you get the same level of affordability and cost-effectiveness for your worker nodes as you would for other types of server instances.
  • DDoS protection. Your projects are protected from DDoS attacks at the network and transport layers by default.
  • GPU worker nodes support. Gcore’s Managed Kubernetes clusters provide support for GPU worker nodes, enabling the execution of GPU-intensive tasks such as machine learning, video processing, and gaming.
  • 24/7 technical support. We offer rapid real-time assistance and quality technical service around the clock.

Learn more about the advantages of Gcore Managed Kubernetes.

Additional Gcore PaaS Offerings

Aside from Gcore Managed Kubernetes, we offer additional PaaS: Managed Logging for collecting and storing logs, function-as-a-service (FaaS) for running code as function without creating and maintaining virtual machines, and Cloud App Marketplace, that gives you access to ready-made systems and applied services.
Here’s a table showcasing some real-life use cases of Gcore platform-as-a-service (PaaS) in different industries.

IndustryUse Case
E-commerceBuilding and managing online marketplaces
HealthcareDeveloping telemedicine applications
Financial servicesBuilding secure and scalable banking apps
EducationCreating online learning platforms
EntertainmentDeveloping media streaming applications
ManufacturingOptimizing supply chain management systems
RetailBuilding and managing e-commerce platforms
Travel and hospitalityCreating reservation and booking systems

Cost Comparison: On-Premises, IaaS, Gcore Managed Services

Additionally, we would like to present a cost comparison between maintaining your infrastructure on-premises, as infrastructure-as-a-service (IaaS,) and using Gcore’s Managed Services/PaaS.

Gcore Managed Services Value

We offer infrastructure cost savings, which means reducing your capital expenses and saving time on infrastructure design. By choosing Gcore as your managed service provider (MSP,) your business can effortlessly scale and prioritize product development while we streamline your business growth.

Conclusion

Managed services are when a business hires an outside company to manage and support their IT infrastructure. This allows the business to focus on what they do best, leaving the technical workloads to experts. The benefits of managed services include enhanced efficiency and security, reduced downtime, and financial savings. Choosing the right managed service provider is crucial as technology becomes more sophisticated and expensive.

At Gcore, our managed services such as Managed Kubernetes are designed to facilitate business growth. By trusting us with your IT infrastructure, your business can benefit from our expertise and resources so you can concentrate on your business primary goals and achieve sustainable growth.

If you have questions, reach out to our dedicated support team and we’ll be glad to assist.

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If you’re using a custom domain, add a CNAME: cdn.yoursite.com CNAME .gcdn.co Here’s how it works via Terraform: resource "gcore_cdn_resource" "cdn" { cname = "cdn.yoursite.com" origin_group_id = gcore_cdn_origingroup.origin.id origin_protocol = "HTTPS" } resource "gcore_cdn_origingroup" "origin" { name = "my-origin-group" origin { source = "mybucket.eu-west.cloud.gcore.lu" enabled = true } } Step 3: Set caching behaviorSet Cache-Control headers in your object metadata: Cache-Control: public, max-age=2592000 Too messy to handle in storage? Override cache logic in Gcore:Force TTLs by path or extensionIgnore or forward query strings in cache keyStrip cookies (if unnecessary for cache decisions)Pro tip: Use versioned file paths (/img/logo.v3.png) to bust cache safely.Secure access with signed URLsWant your assets to be private, but still edge-cacheable? Use Gcore’s Secure Token feature:Enable Secure Token in CDN settingsSet a secret keyGenerate time-limited tokens in your appPython example: import base64, hashlib, time secret = 'your_secret' path = '/videos/demo.mp4' expires = int(time.time()) + 3600 string = f"{expires}{path} {secret}" token = base64.urlsafe_b64encode(hashlib.md5(string.encode()).digest()).decode().strip('=') url = f"https://cdn.yoursite.com{path}?md5={token}&expires={expires}" Signed URLs are verified at the CDN edge. Invalid or expired? Blocked before origin is touched.Optional: Bind the token to an IP to prevent link sharing.Debug and cache tuneUse curl or browser devtools: curl -I https://cdn.yoursite.com/img/logo.png Look for:Cache: HIT or MISSCache-ControlX-Cached-SinceCache not working? Check for the following errors:Origin doesn’t return Cache-ControlCDN override TTL not appliedCache key includes query strings unintentionallyYou can trigger purges from the Gcore Customer Portal or automate them via the API using POST /cdn/purge. Choose one of three ways:Purge all: Clear the entire domain’s cache at once.Purge by URL: Target a specific full path (e.g., /images/logo.png).Purge by pattern: Target a set of files using a wildcard at the end of the pattern (e.g., /videos/*).Monitor and optimize at scaleAfter rollout:Watch origin bandwidth dropCheck hit ratio (aim for >90%)Audit latency (TTFB on HIT vs MISS)Consider logging using Gcore’s CDN logs uploader to analyze cache behavior, top requested paths, or cache churn rates.For maximum savings, combine Gcore Object Storage with Gcore CDN: egress traffic between them is 100% free. That means you can serve cached assets globally without paying a cent in bandwidth fees.Using external storage? You’ll still slash egress costs by caching at the edge and cutting direct origin traffic—but you’ll unlock the biggest savings when you stay inside the Gcore ecosystem.Save money and boost performance with GcoreStill serving assets direct from storage? You’re probably wasting money and compromising performance on the table. Front your bucket with Gcore CDN. Set smart cache headers or use overrides. Enable signed URLs if you need control. Monitor cache HITs and purge when needed. Automate the setup with Terraform. Done.Next steps:Create your CDN resourceUse private object storage with Signature V4Secure your CDN with signed URLsCreate a free CDN resource now

Bare metal vs. virtual machines: performance, cost, and use case comparison

Choosing the right type of server infrastructure is critical to how your application performs, scales, and fits your budget. For most workloads, the decision comes down to two core options: bare metal servers and virtual machines (VMs). Both can be deployed in the cloud, but they differ significantly in terms of performance, control, scalability, and cost.In this article, we break down the core differences between bare metal and virtual servers, highlight when to choose each, and explain how Gcore can help you deploy the right infrastructure for your needs. If you want to learn about either BM or VMs in detail, we’ve got articles for those: here’s the one for bare metal, and here’s a deep dive into virtual machines.Bare metal vs. virtual machines at a glanceWhen evaluating whether bare metal or virtual machines are right for your company, consider your specific workload requirements, performance priorities, and business objectives. Here’s a quick breakdown to help you decide what works best for you.FactorBare metal serversVirtual machinesPerformanceDedicated resources; ideal for high-performance workloadsShared resources; suitable for moderate or variable workloadsScalabilityOften requires manual scaling; less flexibleHighly elastic; easy to scale up or downCustomizationFull control over hardware, OS, and configurationLimited by hypervisor and provider’s environmentSecurityIsolated by default; no hypervisor layerShared environment with strong isolation protocolsCostHigher upfront cost; dedicated hardwarePay-as-you-go pricing; cost-effective for flexible workloadsBest forHPC, AI/ML, compliance-heavy workloadsStartups, dev/test, fast-scaling applicationsAll about bare metal serversA bare metal server is a single-tenant physical server rented from a cloud provider. Unlike virtual servers, the hardware is not shared with other users, giving you full access to all resources and deeper control over configurations. You get exclusive access and control over the hardware via the cloud provider, which offers the stability and security needed for high-demand applications.The benefits of bare metal serversHere are some of the business advantages of opting for a bare metal server:Maximized performance: Because they are dedicated resources, bare metal servers provide top-tier performance without sharing processing power, memory, or storage with other users. This makes them ideal for resource-intensive applications like high-performance computing (HPC), big data processing, and game hosting.Greater control: Since you have direct access to the hardware, you can customize the server to meet your specific requirements. This is especially important for businesses with complex, specialized needs that require fine-tuned configurations.High security: Bare metal servers offer a higher level of security than their alternatives due to the absence of virtualization. With no shared resources or hypervisor layer, there’s less risk of vulnerabilities that come with multi-tenant environments.Dedicated resources: Because you aren’t sharing the server with other users, all server resources are dedicated to your application so that you consistently get the performance you need.Who should use bare metal servers?Here are examples of instances where bare metal servers are the best option for a business:High-performance computing (HPC)Big data processing and analyticsResource-intensive applications, such as AI/ML workloadsGame and video streaming serversBusinesses requiring enhanced security and complianceAll about virtual machinesA virtual server (or virtual machine) runs on top of a physical server that’s been partitioned by a cloud provider using a hypervisor. This allows multiple VMs to share the same hardware while remaining isolated from each other.Unlike bare metal servers, virtual machines share the underlying hardware with other cloud provider customers. That means you’re using (and paying for) part of one server, providing cost efficiency and flexibility.The benefits of virtual machinesHere are some advantages of using a shared virtual machine:Scalability: Virtual machines are ideal for businesses that need to scale quickly and are starting at a small scale. With cloud-based virtualization, you can adjust your server resources (CPU, memory, storage) on demand to match changing workloads.Cost efficiency: You pay only for the resources you use with VMs, making them cost-effective for companies with fluctuating resource needs, as there is no need to pay for unused capacity.Faster deployment: VMs can be provisioned quickly and easily, which makes them ideal for anyone who wants to deploy new services or applications fast.Who should use virtual machines?VMs are a great fit for the following:Web hosting and application hostingDevelopment and testing environmentsRunning multiple apps with varying demandsStartups and growing businesses requiring scalabilityBusinesses seeking cost-effective, flexible solutionsWhich should you choose?There’s no one-size-fits-all answer. Your choice should depend on the needs of your workload:Choose bare metal if you need dedicated performance, low-latency access to hardware, or tighter control over security and compliance.Choose virtual servers if your priority is flexible scaling, faster deployment, and optimized cost.If your application uses GPU-based inference or AI training, check out our dedicated guide to VM vs. BM for AI workloads.Get started with Gcore BM or VMs todayAt Gcore, we provide both bare metal and virtual machine solutions, offering flexibility, performance, and reliability to meet your business needs. Gcore Bare Metal has the power and reliability needed for demanding workloads, while Gcore Virtual Machines offers customizable configurations, free egress traffic, and flexibility.Compare Gcore BM and VM pricing now

Optimize your workload: a guide to selecting the best virtual machine configuration

Virtual machines (VMs) offer the flexibility, scalability, and cost-efficiency that businesses need to optimize workloads. However, choosing the wrong setup can lead to poor performance, wasted resources, and unnecessary costs.In this guide, we’ll walk you through the essential factors to consider when selecting the best virtual machine configuration for your specific workload needs.﹟1 Understand your workload requirementsThe first step in choosing the right virtual machine configuration is understanding the nature of your workload. Workloads can range from light, everyday tasks to resource-intensive applications. When making your decision, consider the following:Compute-intensive workloads: Applications like video rendering, scientific simulations, and data analysis require a higher number of CPU cores. Opt for VMs with multiple processors or CPUs for smoother performance.Memory-intensive workloads: Databases, big data analytics, and high-performance computing (HPC) jobs often need more RAM. Choose a VM configuration that provides sufficient memory to avoid memory bottlenecks.Storage-intensive workloads: If your workload relies heavily on storage, such as file servers or applications requiring frequent read/write operations, prioritize VM configurations that offer high-speed storage options, such as SSDs or NVMe.I/O-intensive workloads: Applications that require frequent network or disk I/O, such as cloud services and distributed applications, benefit from VMs with high-bandwidth and low-latency network interfaces.﹟2 Consider VM size and scalabilityOnce you understand your workload’s requirements, the next step is to choose the right VM size. VM sizes are typically categorized by the amount of CPU, memory, and storage they offer.Start with a baseline: Select a VM configuration that offers a balanced ratio of CPU, RAM, and storage based on your workload type.Scalability: Choose a VM size that allows you to easily scale up or down as your needs change. Many cloud providers offer auto-scaling capabilities that adjust your VM’s resources based on real-time demand, providing flexibility and cost savings.Overprovisioning vs. underprovisioning: Avoid overprovisioning (allocating excessive resources) unless your workload demands peak capacity at all times, as this can lead to unnecessary costs. Similarly, underprovisioning can affect performance, so finding the right balance is essential.﹟3 Evaluate CPU and memory considerationsThe central processing unit (CPU) and memory (RAM) are the heart of a virtual machine. The configuration of both plays a significant role in performance. Workloads that need high processing power, such as video encoding, machine learning, or simulations, will benefit from VMs with multiple CPU cores. However, be mindful of CPU architecture—look for VMs that offer the latest processors (e.g., Intel Xeon, AMD EPYC) for better performance per core.It’s also important that the VM has enough memory to avoid paging, which occurs when the system uses disk space as virtual memory, significantly slowing down performance. Consider a configuration with more RAM and support for faster memory types like DDR4 for memory-heavy applications.﹟4 Assess storage performance and capacityStorage performance and capacity can significantly impact the performance of your virtual machine, especially for applications requiring large data volumes. Key considerations include:Disk type: For faster read/write operations, opt for solid-state drives (SSDs) over traditional hard disk drives (HDDs). Some cloud providers also offer NVMe storage, which can provide even greater speed for highly demanding workloads.Disk size: Choose the right size based on the amount of data you need to store and process. Over-allocating storage space might seem like a safe bet, but it can also increase costs unnecessarily. You can always resize disks later, so avoid over-allocating them upfront.IOPS and throughput: Some workloads require high input/output operations per second (IOPS). If this is a priority for your workload (e.g., databases), make sure that your VM configuration includes high IOPS storage options.﹟5 Weigh up your network requirementsWhen working with cloud-based VMs, network performance is a critical consideration. High-speed and low-latency networking can make a difference for applications such as online gaming, video conferencing, and real-time analytics.Bandwidth: Check whether the VM configuration offers the necessary bandwidth for your workload. For applications that handle large data transfers, such as cloud backup or file servers, make sure that the network interface provides high throughput.Network latency: Low latency is crucial for applications where real-time performance is key (e.g., trading systems, gaming). Choose VMs with low-latency networking options to minimize delays and improve the user experience.Network isolation and security: Check if your VM configuration provides the necessary network isolation and security features, especially when handling sensitive data or operating in multi-tenant environments.﹟6 Factor in cost considerationsWhile it’s essential that your VM has the right configuration, cost is always an important factor to consider. Cloud providers typically charge based on the resources allocated, so optimizing for cost efficiency can significantly impact your budget.Consider whether a pay-as-you-go or reserved model (which offers discounted rates in exchange for a long-term commitment) fits your usage pattern. The reserved option can provide significant savings if your workload runs continuously. You can also use monitoring tools to track your VM’s performance and resource usage over time. This data will help you make informed decisions about scaling up or down so you’re not paying for unused resources.﹟7 Evaluate security featuresSecurity is a primary concern when selecting a VM configuration, especially for workloads handling sensitive data. Consider the following:Built-in security: Look for VMs that offer integrated security features such as DDoS protection, web application firewall (WAF), and encryption.Compliance: Check that the VM configuration meets industry standards and regulations, such as GDPR, ISO 27001, and PCI DSS.Network security: Evaluate the VM's network isolation capabilities and the availability of cloud firewalls to manage incoming and outgoing traffic.﹟8 Consider geographic locationThe geographic location of your VM can impact latency and compliance. Therefore, it’s a good idea to choose VM locations that are geographically close to your end users to minimize latency and improve performance. In addition, it’s essential to select VM locations that comply with local data sovereignty laws and regulations.﹟9 Assess backup and recovery optionsBackup and recovery are critical for maintaining data integrity and availability. Look for VMs that offer automated backup solutions so that data is regularly saved. You should also evaluate disaster recovery capabilities, including the ability to quickly restore data and applications in case of failure.﹟10 Test and iterateFinally, once you've chosen a VM configuration, testing its performance under real-world conditions is essential. Most cloud providers offer performance monitoring tools that allow you to assess how well your VM is meeting your workload requirements.If you notice any performance bottlenecks, be prepared to adjust the configuration. This could involve increasing CPU cores, adding more memory, or upgrading storage. Regular testing and fine-tuning means that your VM is always optimized.Choosing a virtual machine that suits your requirementsSelecting the best virtual machine configuration is a key step toward optimizing your workloads efficiently, cost-effectively, and without unnecessary performance bottlenecks. By understanding your workload’s needs, considering factors like CPU, memory, storage, and network performance, and continuously monitoring resource usage, you can make informed decisions that lead to better outcomes and savings.Whether you're running a small application or large-scale enterprise software, the right VM configuration can significantly improve performance and cost. Gcore offers a wide range of virtual machine options that can meet your unique requirements. Our virtual machines are designed to meet diverse workload requirements, providing dedicated vCPUs, high-speed storage, and low-latency networking across 30+ global regions. You can scale compute resources on demand, benefit from free egress traffic, and enjoy flexible pricing models by paying only for the resources in use, maximizing the value of your cloud investments.Contact us to discuss your VM needs

How to get the size of a directory in Linux

Understanding how to check directory size in Linux is critical for managing storage space efficiently. Understanding this process is essential whether you’re assessing specific folder space or preventing storage issues.This comprehensive guide covers commands and tools so you can easily calculate and analyze directory sizes in a Linux environment. We will guide you step-by-step through three methods: du, ncdu, and ls -la. They’re all effective and each offers different benefits.What is a Linux directory?A Linux directory is a special type of file that functions as a container for storing files and subdirectories. It plays a key role in organizing the Linux file system by creating a hierarchical structure. This arrangement simplifies file management, making it easier to locate, access, and organize related files. Directories are fundamental components that help ensure smooth system operations by maintaining order and facilitating seamless file access in Linux environments.#1 Get Linux directory size using the du commandUsing the du command, you can easily determine a directory’s size by displaying the disk space used by files and directories. The output can be customized to be presented in human-readable formats like kilobytes (KB), megabytes (MB), or gigabytes (GB).Check the size of a specific directory in LinuxTo get the size of a specific directory, open your terminal and type the following command:du -sh /path/to/directoryIn this command, replace /path/to/directory with the actual path of the directory you want to assess. The -s flag stands for “summary” and will only display the total size of the specified directory. The -h flag makes the output human-readable, showing sizes in a more understandable format.Example: Here, we used the path /home/ubuntu/, where ubuntu is the name of our username directory. We used the du command to retrieve an output of 32K for this directory, indicating a size of 32 KB.Check the size of all directories in LinuxTo get the size of all files and directories within the current directory, use the following command:sudo du -h /path/to/directoryExample: In this instance, we again used the path /home/ubuntu/, with ubuntu representing our username directory. Using the command du -h, we obtained an output listing all files and directories within that particular path.#2 Get Linux directory size using ncduIf you’re looking for a more interactive and feature-rich approach to exploring directory sizes, consider using the ncdu (NCurses Disk Usage) tool. ncdu provides a visual representation of disk usage and allows you to navigate through directories, view size details, and identify large files with ease.For Debian or Ubuntu, use this command:sudo apt-get install ncduOnce installed, run ncdu followed by the path to the directory you want to analyze:ncdu /path/to/directoryThis will launch the ncdu interface, which shows a breakdown of file and subdirectory sizes. Use the arrow keys to navigate and explore various folders, and press q to exit the tool.Example: Here’s a sample output of using the ncdu command to analyze the home directory. Simply enter the ncdu command and press Enter. The displayed output will look something like this:#3 Get Linux directory size using 1s -1aYou can alternatively opt to use the ls command to list the files and directories within a directory. The options -l and -a modify the default behavior of ls as follows:-l (long listing format)Displays the detailed information for each file and directoryShows file permissions, the number of links, owner, group, file size, the timestamp of the last modification, and the file/directory name-a (all files)Instructs ls to include all files, including hidden files and directoriesIncludes hidden files on Linux that typically have names beginning with a . (dot)ls -la lists all files (including hidden ones) in long format, providing detailed information such as permissions, owner, group, size, and last modification time. This command is especially useful when you want to inspect file attributes or see hidden files and directories.Example: When you enter ls -la command and press Enter, you will see an output similar to this:Each line includes:File type and permissions (e.g., drwxr-xr-x):The first character indicates the file type- for a regular filed for a directoryl for a symbolic linkThe next nine characters are permissions in groups of three (rwx):r = readw = writex = executePermissions are shown for three classes of users: owner, group, and others.Number of links (e.g., 2):For regular files, this usually indicates the number of hard linksFor directories, it often reflects subdirectory links (e.g., the . and .. entries)Owner and group (e.g., user group)File size (e.g., 4096 or 1045 bytes)Modification date and time (e.g., Jan 7 09:34)File name (e.g., .bashrc, notes.txt, Documents):Files or directories that begin with a dot (.) are hidden (e.g., .bashrc)ConclusionThat’s it! You can now determine the size of a directory in Linux. Measuring directory sizes is a crucial skill for efficient storage management. Whether you choose the straightforward du command, use the visual advantages of the ncdu tool, or opt for the versatility of ls -la, this expertise enhances your ability to uphold an organized and efficient Linux environment.Looking to deploy Linux in the cloud? With Gcore Edge Cloud, you can choose from a wide range of pre-configured virtual machines suitable for Linux:Affordable shared compute resources starting from €3.2 per monthDeploy across 50+ cloud regions with dedicated servers for low-latency applicationsSecure apps and data with DDoS protection, WAF, and encryption at no additional costGet started today

How to Run Hugging Face Spaces on Gcore Inference at the Edge

Running machine learning models, especially large-scale models like GPT 3 or BERT, requires a lot of computing power and comes with a lot of latency. This makes real-time applications resource-intensive and challenging to deliver. Running ML models at the edge is a lightweight approach offering significant advantages for latency, privacy, and resource optimization.  Gcore Inference at the Edge makes it simple to deploy and manage custom models efficiently, giving you the ability to deploy and scale your favorite Hugging Face models globally in just a few clicks. In this guide, we’ll walk you through how easy it is to harness the power of Gcore’s edge AI infrastructure to deploy a Hugging Face Space model. Whether you’re developing NLP solutions or cutting-edge computer vision applications, deploying at the edge has never been simpler—or more powerful. Step 1: Log In to the Gcore Customer PortalGo to gcore.com and log in to the Gcore Customer Portal. If you don’t yet have an account, go ahead and create one—it’s free. Step 2: Go to Inference at the EdgeIn the Gcore Customer Portal, click Inference at the Edge from the left navigation menu. Then click Deploy custom model. Step 3: Choose a Hugging Face ModelOpen huggingface.com and browse the available models. Select the model you want to deploy. Navigate to the corresponding Hugging Face Space for the model. Click on Files in the Space and locate the Docker option. Copy the Docker image link and startup command from Hugging Face Space. Step 4: Deploy the Model on GcoreReturn to the Gcore Customer Portal deployment page and enter the following details: Model image URL: registry.hf.space/ethux-mistral-pixtral-demo:latest Startup command: python app.py Container port: 7860 Configure the pod as follows: GPU-optimized: 1x L40S vCPUs: 16 RAM: 232GiB For optimal performance, choose any available region for routing placement. Name your deployment and click Deploy.Step 5: Interact with Your ModelOnce the model is up and running, you’ll be provided with an endpoint. You can now interact with the model via this endpoint to test and use your deployed model at the edge.Powerful, Simple AI Deployment with GcoreGcore Inference at the Edge is the future of AI deployment, combining the ease of Hugging Face integration with the robust infrastructure needed for real-time, scalable, and global solutions. By leveraging edge computing, you can optimize model performance and simultaneously futureproof your business in a world that increasingly demands fast, secure, and localized AI applications. Deploying models to the edge allows you to capitalize on real-time insights, improve customer experiences, and outpace your competitors. Whether you’re leading a team of developers or spearheading a new AI initiative, Gcore Inference at the Edge offers the tools you need to innovate at the speed of tomorrow. Explore Gcore Inference at the Edge

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