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What is a managed IT service?

Source: Vsoftsystems, 21/08/2018


With two-thirds of businesses using managed services, learn about what
managed IT services are and how they’re being used
Managed IT services are growing at a rapid rate, with a recent survey
estimating that almost 69% of small to medium-sized businesses (SMBs)
hire at least one type of IT service provider.
So what are managed IT services, how do they work, and why would
companies consider using them?
Managed IT services work on a subscription-style model where customers
pay a monthly fee for a third-party provider’s services. This
subscription, called a service plan, can be anything from a basic
level of service to one that includes maintenance and repairs for
anything that goes wrong. This can be an ideal way to offload some of
the burdens of setup, maintenance and upgrades that come from an
organisation’s IT department.
This is in direct contrast to other models, such as a break/fix model,
where organisations pay an IT solution provider to repair, upgrade or
install systems or software for a one-off fee.
Service level agreements (SLAs) are important when outsourcing
services, as this states the expectations for the minimum level of
service the customer should receive.
Examples of managed IT services
Managed IT services can cover a range of business functions, from
network, application, system, payroll, server, and backup/recovery
solutions to workstation and printer management.
One of the most common examples of managed IT services at present is
cloud services, where SMBs lacking expertise and resources can use a
managed service provider (MSP) who may provide in-house cloud services
or act as brokers with cloud services providers.
Another growing area in managed IT services is security. With the
ever-growing risk of a malicious attack, some companies find it more
efficient to outsource their security to a specialist managed security
service provider (MSSP) who will handle the day-to-day security
workload as well as patch management, backup, and responses to any
breaches.
Pros and cons of managed IT services
The specific advantages and disadvantages of managed IT services
depends in part on the type of service, but there are some more
general factors which may influence a business’ choice to outsource a
function to an MSP.
Advantages of managed IT services include:
• Expertise: For smaller businesses in particular, being able to
outsource knowledge and expertise can be an enormous help, as well as
having experienced technical support available
• Predictable costs: Rather than incurring large expenses for an IT
issue, businesses can instead account for potential problems within a
predictable monthly fee
• Maintenance and upgrades: Organisations no longer have to worry
whether software is up-to-date, as all this is taken care of by the
provider. They can also get access to newer technologies which they
may not have been able to afford by themselves
• Time savings: Outsourcing management of services like security and
cloud reduces the amount of time that in-house departments have to
spend on it.
Disadvantages of managed IT services include:
• Control: If there’s an outage or an incident, there’s little a
business reliant on managed services can do. Theoretically, a good MSP
will be able to address issues much more quickly than an internal IT
team, but it can be frustrating to not have visibility of serious
problems and progress in dealing with them in-house.
• Flexibility: In general, managed IT service providers will have a
standard offering which is available to all their clients. They may be
able to modify this, but it will usually be less flexible than having
a solution that is customised to business needs.
• Reliability: Should anything happen to the service provider,
customers could be left trying to find alternative solutions in a
short space of time.
Whether businesses decide a managed IT services provider is the right
route for them, it’s not a market that is going away any time soon. In
fact, it`s the market is expected to be worth approximately $258
billion by 2022, up from $152 billion in 2017, according to Markets
and Markets.
As the number of offerings and the capability of existing offerings
grows, there is no doubt that we will see companies of all sizes
making use of managed IT services for varying parts of their business.


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