What is a Managed Service and How Can It Help Your Business?

Managed services are an effective way for businesses to outsource certain tasks such as IT maintenance or digital transformation consulting while reducing costs. Learn more about what managed services are & how to choose an MSP.

What is a Managed Service and How Can It Help Your Business?

Managed services are a great way to outsource the responsibility of maintaining and anticipating the need for a range of processes and functions. This practice is designed to improve operations and reduce budget expenditures by reducing staff directly employed. A managed IT service is an information technology (IT) task provided by an external contractor and delivered to a customer. Service providers, for example, can focus on infrastructure as a service (IaaS), providing managed public cloud services together with cloud providers such as Amazon Web Services (AWS), Google and Microsoft.

Managed service models have evolved over time and experienced providers have refined their delivery. DSP-Explorer is a data management and cloud platform MSP that offers enterprise-level support & consulting services for Oracle, Microsoft and multi-cloud technologies. There are many different types of managed IT service offerings, but the idea behind all of them is to shift the burden of IT maintenance from the customer to a service provider. The origins of managed IT service providers can be traced back to the 1990s and to the advent of application service providers (ASP), which offered remote application hosting services. Small and medium-sized enterprises (SMEs), non-profit organizations, and government agencies hire MSPs to perform a defined set of day-to-day management services. Managed service providers have evolved lately to offer services that support long-term and strategic business planning, including digital transformation consulting, compliance audits, technology roadmaps, and needs assessments.

And since many managed service providers offer this service, there is strong competition and pressure on profit margins. Last year's pandemic also saw an increase in demand for cloud-based solutions and increased momentum to accelerate digital transformations, as customer demand shifted away from integrating basic service systems and help desk services to remote work support and cybersecurity, according to a recent Acronis survey of managed service providers. Today, the terms cloud service provider and managed service provider are sometimes used synonymously when the provider's service is backed by a service level agreement (SLA) and delivered over the Internet. Managed IT services are typically billed on a regular and scheduled basis, with monthly fees as a common approach. However, given the maturity of managed services models and the shift to virtualization and cloud, the need for on-premises IT staff may be limited to exceptions where operational sensitivity warrants it.

Managed service providers hire IT professionals with a wide range of experience and skill levels, although individual companies may focus on particular industries or technologies. In my career, I have worked with many clients who use managed services in a variety of ways. Managed services can be incredibly beneficial for businesses looking to streamline their operations while reducing costs. By outsourcing certain tasks such as IT maintenance or digital transformation consulting, businesses can free up resources that can be used elsewhere in their organization. Additionally, managed services can help businesses stay up-to-date with the latest technology trends while ensuring compliance with industry regulations. When selecting a managed service provider, it is important to consider their experience in your industry or with your specific technology stack.

Additionally, you should look for providers that offer comprehensive support packages that include proactive monitoring, regular maintenance checks, 24/7 support availability, and more. Finally, make sure that you understand the terms of your agreement before signing any contracts.

Bertha Jenney
Bertha Jenney

Wannabe coffee ninja. Freelance pizza fan. Award-winning travel guru. Hipster-friendly tv ninja. Freelance twitter ninja.

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