The managed services model is not a new phenomenon, in fact its origin is from the 1990’s. With the rapid rise of technology, companies found themselves needing the most recent equipment and network capability to stay competitive. However, many found themselves without the expertise to handle the new technical capabilities. The first generation of the managed service provider (or MSP) was called “break-fix”.
Break-fix companies typically operated by means of a service contract. As the name would imply, a covered company would call the provider whenever something in their network broke down, or the equipment failed. An expert would respond to the emergency situation, but often the outage or downtime could be significant.
Over the last 3 decades, the MSP model has evolved and presented in many iterations, always working towards the most responsive and real-time solutions.
But the MSP provider methodology has really come into its own in the last decade, and there are several reasons why.
Cyber Crime: We speak a lot about the proliferation of cyber crime, and for good reason. There is no greater threat to business in 2020. No matter how many attacks are thwarted, the criminals continue to evolve and develop new ways to compromise networks. Whether stealing your customer data, holding your network for ransom, or completely disabling your ability to do business, the level of vulnerability is high. It is now estimated that 60% of organizations have suffered a data breach, and small business is far from immune. Therefore companies of all sizes need to have a serious strategy for dealing with the threats. Unfortunately, many of those companies simply do not have the resources and skill sets to maintain a 24 x 7 vigil to keep watch over their company data. An MSP not only provides the expertise needed, but offers a round-the-clock monitoring to keep you safe, and rapid response if an attack is detected.
Server Virtualization: Many organizations have technology onsite which is under-utilized, or they have servers which are not being properly optimized. When software updates require the technology to be upgraded, unnecessary money may be spent. An MSP offers the opportunity for companies to share virtualized servers with other companies. The strategy allows for cost-sharing of technology maintenance, as well as any technology upgrades which will be needed as new versions are unveiled. (Read more here).
Personnel Resources: One of the major problems facing the IT industry as we enter the new decade is the lack of personnel with required knowledge. The skills gap is forcing companies to compete for the limited pool of qualified applicants, and many organizations simply don’t have the budget to do so. As a result, many companies are forced to enlist current employees to try to learn as much as possible and take on the IT department. An MSP solves the skills gap dilemma by providing small to medium sized organizations with the skills and resources they need to stay on top of the technology curve – not to mention effectively combat cyber crime. A deep bench of expertise is available for a fraction of the cost of hiring those same people as permanent employees.
These scenarios are the tip of the iceberg. The current IT and technology environment demands top personnel, watching and protecting your network continuously. While most companies do not have the ability to effectively confront the challenges, the MSP model has emerged as a top solution for 2020 and beyond.
For more information on how a managed services provider can help you and your Sarasota area business, call Alliance IT today.
