Managed storage is the process of offloading an organization’s data storage requirements to a third-party managed service provider. The storage can be located onsite or offsite, depending on the company's needs and the service provider they select. Cloud storage is a type of managed storage.
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A company that employs managed storage may not need a dedicated storage administrator when the company's storage needs are contracted out. Sometimes a company will rent dedicated storage or dedicated space in a data center maintained by the service provider but many companies are reluctant to move critical data outside their private data centers, as this could mean loss of control over the data..
Managed storage can decrease capital expenses associated with buying and administrating storage systems. This is considered an upside of managed storage, as companies can simply order more storage capacity or services as needed, instead of having to purchase new hardware and software.