Managed Services is an activity to remotely manage a customer’s IT infrastructure and/or end-user systems, typically on a proactive basis and under a subscription model.
In a managed service, the managed service provider retains responsibility for the functionality of the IT service and equipment, and the customer typically pays a monthly fee for receipt of the service. There are many different types of managed service offerings, but the idea behind all of them is to transfer the burden of maintaining IT from the customer to a service provider. In an effective managed services relationship, a customer benefits from predictable pricing and the ability to focus on core business concerns rather than IT department management chores.
When effectively executed, a Managed Service (MS) is like gaining the capability of an IT Department with the expertise of seasoned professionals to deliver focused application operations to your company’s business application users. Simply put, a MS is designed to handle the daily operations of your specialized applications providing the capability to your company end-users and therefore allowing in-house IT to focus on more strategic IT programs, freeing up your teams to focus on your business’ core competencies.
Benefits of Managed Services:
- Better Cost Control: Cost factors for a business service depend on an organization’s requirement for availability and criticality of a particular service. The typical cost components of an IT department, including training, equipment and personnel, are absorbed by the MS Provider and presented as a fixed monthly charge to the company. This helps in effectively predicting costs every month when budgeting. The biggest benefit is that a company can decide how much to scale based on factors that may include finance and the CIO’s strategic vision. IT Service interruptions and outages can also be prevented, thus mitigating the risk of further losses.
- Improved Risk Management: Every business carries a certain amount of risk. Risk can be minimized by lowering the individual risk involved with each business service identified as critical. A Managed Service Provider can help reduce risk by contributing their own proprietary methodologies and access to modern infrastructure and software.
- High Availability, Efficiency and Productivity: For optimal company performance, constant availability of a mission-critical IT services is the top priority for many organizations. While assessing the true cost of downtime is hard, it is always recommended to take proactive steps to avoid it completely. Mission-critical applications involve multiple technologies and require them to be fully operational and integrated to achieve the IT service expected. An MS Provider can ensure maximum uptime and minimal service interruptions.
- Future Proofing IT Services: IT departments will always have funding, technical, security, and operational challenges. MSP’s will always have their staff trained on upcoming and new releases as well as new technologies with the ability to lock-in costs for a multi-year period. By creating more predictability, your business will reduce operational risk, challenges and minimize service disruption.