Managed Services
Overview
Managed services is a strategic method of improving operations in businesses. It involves outsourcing certain processes and functions intended to improve operations and cut expenses. It is an alternative to the break/fix or on-demand outsourcing model where the service provider performs on-demand services and bills the customer only for the work done.
History
The concept of managed services started with Fortune 500 corporations in the late 1980s and early 1990s. These large companies were the only ones with the means to afford the exorbitant costs of internal IT infrastructures. The advent of the Internet and the proliferation of small and medium-sized businesses (SMBs) led to a significant increase in the demand for IT services. This resulted in the creation of managed services to cater to this growing need.
Types of Managed Services
There are several types of managed services offered by service providers. These include:
Managed IT Services
This involves the outsourcing of IT operations to a service provider, known as a Managed Services Provider (MSP). The MSP is responsible for 24/7 monitoring, managing and/or problem resolution for the IT systems within a business.
Managed Network Services
These are networking applications, functions and services that enterprises outsource to be remotely operated, monitored and maintained by a managed service provider (MSP).
Managed Security Services
These are network security services that have been outsourced to a service provider. The services may include virus blocking, spam blocking, intrusion detection, firewalls and virtual private network (VPN) management.
Managed Print Services
These are services offered by an external provider to optimize or manage a company’s document output to certain objectives, such as driving down costs, improving efficiency and productivity, or reducing the IT support workload.
Managed Cloud Services
These services involve outsourcing daily IT management for cloud-based services and technical support to automate and enhance your business operations.
Benefits of Managed Services
Managed services come with several benefits. These include:
- Cost savings: Businesses can reduce their operational costs by outsourcing their IT operations to managed services providers. This is because these providers have the necessary expertise and infrastructure to handle such tasks more efficiently.
- Focus on core competencies: By outsourcing non-core business functions, companies can focus more on their core competencies.
- Risk reduction: Managed services providers have specific industry knowledge, especially in terms of security and compliance issues. They can help to reduce risks associated with maintaining client data and other sensitive information.
- Scalability: Managed services providers can easily cope with the changing business needs of their clients. They can increase or decrease the services they provide based on the client's requirements.
- Proactive support: Managed services providers offer proactive support. They can detect and fix problems before they can negatively affect your business.
Managed Services Providers
Managed services providers (MSPs) are third-party technology experts who are hired to handle the IT needs of businesses. They are responsible for the entirety or portions of a business's IT systems, as agreed upon in a Service Level Agreement (SLA). The SLA is a contract that outlines the performance and quality metrics that will guide the relationship.
Future of Managed Services
The future of managed services is promising, with several trends shaping its landscape. These include the increasing adoption of artificial intelligence (AI) and machine learning (ML) in managed services, the growing reliance on managed security services due to the increasing threats of cyber attacks, and the rising use of cloud services.