What are Managed IT Services?

Managed IT Services are information technology (IT) related tasks of business operations that are outsourced to a third-party vendor who operates remotely. Common examples of it related tasks that are outsourced to MSP’s, i.e., managed it services include:

• Proactive monitoring and management of network infrastructure
• Software installation and patch updates
• Help desk support for technical issues
• Backup and disaster recovery protocols
• Cybersecurity threat detection and response

Managed IT Services are guided by a Service Level Agreement (SLA), which defines specific performance metrics, response times, and quality standards, ensuring reliable incident management for IT support.

Through the Managed Service Model, businesses transition IT services from in-house teams to external experts known as Managed Service Providers (MSPs). MSPs proactively manage and monitor IT infrastructure, offering continuous support, cost savings, and access to advanced technology, enhancing both security and efficiency for their clients.

Managed IT Services have evolved from a reactive, break-fix approach to proactive, technology-oriented solutions. MSPs now employ tools like AI and machine learning to detect and resolve issues early, enhancing reliability and security. Managed IT services are typically available at tiered subscription or flat rates, allowing businesses to predict IT costs and scale resources as needed. This model is particularly beneficial for small and medium-sized businesses (SMBs), giving them access to sophisticated technology and SaaS solutions at a lower cost than in-house alternatives.

How Has Managed IT Services Evolved Over the Years?

IT Managed Services has evolved from its early days of simple remote monitoring and management to much more comprehensive, strategic partnerships. During the 1990s, the focus was on break-fix models, emphasizing dealing with problems as they arose. However, the scenario shifted towards a more proactive approach in the early 2000s, where MSPs started accessing real-time data for problem detection and prevention via remote monitoring and management tools.

The industry saw a significant transformation in the 2010s with the introduction of cloud computing and automation, leaving the door open for enhanced capabilities in data backup, disaster recovery, and scalable cloud services. With further innovation, especially in AI and machine learning, the market has evolved to allow for greater personalization of services from MSPs to predict potential issues and automate routine maintenance – ultimately creating more proactive offerings leading to downtime reduction and improved operational efficiencies.

Benefits of Managed IT Services

The Managed IT Solution Model provides an upper hand over the classic break-fix IT model, which is reactive in nature, and services get delivered only when issues are visible. This proactive approach not only increases operational efficiencies but also converges with long-term business strategies. 

Here are 8 key benefits of Managed IT Services:

1. Improve IT Budgeting
2. Access to Expert Skill Sets
3. 24/7 Proactive Monitoring
4. Increase Uptime
5. Quick Incident Response Time 
6. Improved Compliance
7. Improve Data Management
8. Enhance Cloud Computing Capabilities

Improve IT Budgeting

With managed IT services, small businesses can manage their finances well, as there are no one-time capital purchases for hardware and infrastructure. The capital expenses are converted into predictable monthly costs. This model benefits SMBs by eliminating other initial investments and reducing overall IT expenses. It helps businesses efficiently manage and allocate their financial resources with more significant financial clarity without any unexpected IT expenditure.

Access to Expert Skill Sets

Managed service providers offer top-tier technical support from IT experts with deep expertise in core technologies. It only costs a fraction of a business’s total capital while hiring in-house specialists. This helps mid-sized businesses keep pace with technological advancements and best practices without hiring and training an in-house team.

24/7 Proactive Monitoring

Managed IT Services provide continuous monitoring, ideal for healthcare industries, to detect and fix problems before disruptions occur. These proactive steps reduce downtime, enhance protection from threats, and prevent unplanned outages due to inadequate server management, ensuring your systems remain secure, operational, and readily available.

Increase Uptime

MSPs offer high availability and quick disaster recovery solutions to ensure system reliability. This proactive management reduces disruptions or downtimes that retail businesses relying on e-commerce or point-of-sale systems might otherwise face with IT failures. By identifying and resolving potential issues before they cause disruptions, companies can experience enhanced productivity and customer satisfaction while avoiding revenue losses during peak shopping seasons.

Quick Incident Response Time

When issues arise, Managed IT Services swiftly address them before they become more significant problems. This approach minimizes downtime, maintains productivity, and prevents substantial financial impacts, ensuring smooth operations. This benefits enterprises that need quick issue resolution, which may lead to downtime and financial losses.

Improved Compliance

With frequently changing regulations, compliance can be a significant challenge for businesses due to their limited resources. MSPs stay current with these changes, ensuring that a company’s IT infrastructure complies with applicable laws and regulations. This primarily applies to finance and healthcare sectors, which should adhere to HIPAA, FINRA, and SOX to avoid costly legal penalties for non-compliance. This approach safeguards the business’s reputation and operational integrity.

Improve Data Management

Education and finance sectors can benefit from improved data management with robust backup and recovery solutions provided by MSPs. This proactive approach preserves data integrity, ensures compliance, and enables quick recovery, safeguarding your critical business information.

Enhance Cloud Computing Capabilities

Managed IT Services enhance cloud computing functionality through seamless integration, scalability, and security. This approach prevents migration issues, strengthens data protection, and maximizes cloud benefits, allowing your business, especially start-ups and small businesses, to grow efficiently and securely.

Limitations of Managed IT Services

Managed IT Services has their own advantages but there are some limitations that businesses must look after before they sign an agreement with an MSP. Here are four essential limitations:

• Security and Privacy Concerns: Using a managed service provider to process sensitive business information exposes the business to many risks, especially if the managed service provider does not have adequate security protocols in place. This may lead to data breaches and information theft.
• Loss of Direct Control: Entrusting sensitive systems management to third parties may result in a lack of direct control over executing processes and making decisions where timely actions are required. This may result in slow decision–making.
• Standardized Solutions: Managed service providers develop standard solutions that do not consider the business’s unique operations, which may create a shortage of tailor-made or specialized features. This creates potential gaps in customization that do not fully satisfy business goals.
• Dependency on External Provider: Dependency on the managed service provider is possible, especially when the services they offer are vital to the organization’s existence. In this case, any disruption of the provider’s services will have a negative effect on the organization, impacting overall operation

What is the Difference between an MSP and an In-house IT Team

The primary difference between a Managed Service Provider (MSP) and an in-house IT team revolves around their primary workloads and management models. An MSP is a third-party service provider responsible for handling daily IT tasks like system maintenance, software updates, backups, and monitoring. Outsourcing these operations allows companies to focus their resources on aligning them with their long-term goals. Conversely, an in-house IT team consists of office employees focusing on high-level projects to fulfill organizational objectives. They majorly deploy new technologies, integrate systems, and drive innovations. 

For those looking for a middle ground, Co-managed IT services offer the privilege of both the MSPs and the in-house team. They encompass routine tasks and specialized support of the MSP, day-to-day decision-making, and in-the-ground liaison of the in-house team. Ultimately, it is up to the organization to choose whose service they require depending on their operational needs, budget, and long-term business goals.

How Much Does Managed IT Services Cost?

The managed IT services cost between $99 to $400 per month for an average-rated Managed Service Provider. Such competitive pricing means that good quality managed IT services are still within reach for SMBs (Small and medium businesses) looking to get hands-on, experienced, and professional IT support.

Knowing the various pricing models employed by Managed Service Providers (MSPs) will allow for better cost prediction and selection of one that meets your needs. Managed IT services are a cost-effective solution that allows companies to compete against other businesses and save money on their technology needs by outsourcing them. This allows them to use those valuable resources to focus on core business operations and growth initiatives.

Managed IT Services Pricing Models

Managed IT Services offer various pricing models, among which per-device, per-user, value-based, tiered, all-you-can-eat, and À la carte are the 6 most common pricing models of managed IT services. Each model is tailored to different business needs and service scopes. 

1. Per-device

The per-device model is priced based on the number of devices managed, running around $200-$250 for each server and somewhere between $50 and $100 per individual device. This model covers anything from servers and workstations to desktop computers, including mobile devices, specifically smartphones and tablets.

This pricing strategy is straightforward and predictable, making it ideal for organizations with limited variability in their service requirements and who want to maintain a clear overview of information technology expenditures linked directly to specific hardware.

2. Per-user

User-specific pricing corresponds to service costs based on the number of users, which usually ranges from $99 to $250 per user per month. This model benefits companies where employees use multiple devices, as it covers each user’s IT needs regardless of the number of devices they use.

3. Value-based

Value-based pricing looks at the results and performance gains an MSP can provide. This realigns the MSP’s incentives with their business objective and helps them foster a relationship for mutual success. In this model, pricing usually depends on relevant business metrics or success.

4. Tiered

The tiered pricing model offers different packages of services at various price points, approximately $3000 to $6000. The structure is tiered, each containing a unique set of services, allowing businesses to choose their desired type that fits under budget. This tiered model gives businesses of all sizes the opportunity to choose what types and levels of services their business requires.

5. All-you-can-eat

In this pricing model, companies get unlimited IT services for a monthly flat fee. This offering consists of onsite and remote support, providing flat-rate billing for businesses with all-inclusive IT maintenance. This model is suitable for companies with a lot of IT needs and who want budget certainty each month.

6. À la carte

The À la carte model applies when a business pays only for the services they require instead of buying into an entire package. The cost range of this model is between $30 and $100. This model suits businesses with unique needs or looking to incrementally increase their utilization of managed IT services for the ultimate flexibility.

By understanding these pricing models, businesses can take a more informed approach when selecting the managed IT services that are right for their operations and stay within budget. This provides an opportunity to enhance IT management strategies in support of peak performance.

Types of Managed IT Services

Managed IT services encompass a range of offerings that are managed by MSPs to meet the needs of many different types and sizes of businesses. Here are the 8 most common types of managed IT services:

1. Network Management Services
2. Cloud Computing Services
3. Cyber Security Management Services
4. IT Support Services
5. Backup and Disaster Recovery Services
6. IT Consulting Services
7. Managed IP Telephony Services
8. Managed Print Services

Network Management Services

Network management services involve maintaining and controlling a network infrastructure, such as LANs, WANs, wireless networks, routers, switches, firewalls, and connectivity resources, that enable a business to manage voice, video, and data communication resources. Primary focus of Managed Network Service is on securing and maintaining your network so that your organization can run properly. It contributes to the installation and development of network cabling, backing it with network defense solutions such as Ubiquity, Cisco, and Fortinet, and includes computer or desktop support facilities.

Cloud Computing Services

Cloud computing services are internet-based services providing access to software applications, storage, and more without the need to own local infrastructure. Cloud Services includes Infrastructure as a Service (IaaS) models for Platform as a Service (PaaS) and Software as a Service (SaaS) that scale resources on demand to increase efficiency and lower costs. These services help in the movement to the cloud and make data migration a secure process.

Cyber Security Management Services

Cybersecurity management services strive to avoid, discover, and respond to cyber incidents by applying strategies such as regular updates, threat monitoring, fast incident response, antivirus protection, patch management, multi-factor authentication (MFA), and vulnerability assessments. Together, these multi-layered steps deliver substantial cybersecurity protections through prevention, enhanced detection, and timely reaction.

IT Support Services

IT support services manage all sorts of business configurations for work and collaboration connections. They work to resolve IT problems promptly, providing information and support related to the company for end-users and employees. These services include troubleshooting, handling system updates, resolving network issues, and deploying, approving, and scheduling patches to ensure smooth operational flows.

Backup and Disaster Recovery Services

BCDR services are critical to IT service management, focusing on business continuity and rapid recovery in the event of data loss, natural disasters, cyberattacks, or any other incidents disrupting IT services. These services involve protecting and restoring data, applications, and systems according to policies aligned with business needs, including regular system checks, data backup management, and disaster recovery plans to reduce downtime during emergencies.

IT Consulting Services

IT consulting services involve expert advisors who assess a business’s current IT environment, identify areas for improvement, and recommend solutions to enhance performance and efficiency. Tech Consultants provide guidance on various IT-related issues, from system architecture and software implementation to data management and cybersecurity, aligning with the business’s global objectives.

Managed IP Telephony Services

Managed IP telephony services involve managing voice communications over the internet. These services include Voice over Internet Protocol (VoIP) solutions that help businesses reduce telecommunications costs while enhancing the functionality and flexibility of their communication systems.

Managed Print Services

Managed print services help manage the usage of a company’s printing equipment. This service allows businesses to control costs, reduce environmental impact, and increase efficiency by optimizing the use of printers, copiers, and multifunction devices.

6 Things to Consider While Subscribing Managed IT Support Services

Selecting the right Managed Service Provider (MSP) can significantly impact your business’s IT efficiency and overall success. Here are six crucial factors to consider when subscribing to managed IT service provider:

1. Trust and Track Records: Check the MSP’s reputation in the industry. Read their reviews, references, and case studies to see if they can show that you will get what is promised. Knowing their proven track record makes the MSP credible enough to trust the company’s IT needs.
2. Industry Compliance: It is necessary to know that the chosen MSP adheres to relevant industry standards and regulations. This is where it matters most, especially in the healthcare, finance, and legal sectors, which are subject to tight regulations. An MSP with experience in these areas can help you remain compliant and avoid huge fines.
3. Accountability: Pick an MSP that is transparent about its SLAs and will be held responsible for meeting them. Accountability is needed for MSPs to guarantee that organizations will indeed have the promised service levels and support every time.
4. Pricing Structure: Know the MSP’s pricing model to check whether it suits your business requirements. Having pricing that is both flexible and scalable means costs should grow with the business rather than in direct proportion to how budgets are stretched. Check if the pricing model your MSP offers scales with your enterprise as it grows.
5. Transparency: Find an MSP that is transparent concerning their processes and service standards and proactively communicates with clients about how systems operate, incidents, and maintenance (done) activities. Added transparency helps ensure that businesses stay abreast of their IT environment.
6. 24/7 Support: IT systems should always be up and running, so you get 24/7 support in case of an issue to address it immediately without losing business. Advanced 24/7 support All MSPs offer some kind of after-hours support, but the really good ones provide your IT staff with a lifeline – at any time — to help from experienced engineers.

FAQs

What is the difference between IT Support and Managed IT Services?

IT Support, known as the Break/Fix model, is a reactive approach that addresses immediate technical issues when they arise. Meanwhile, Managed IT Services follow a proactive approach that encompasses continuous monitoring, preventive maintenance, and round-the-clock technology support to avoid potential issues while enhancing overall system performance.

What is an MSP?

An MSP, or Managed Service Provider, is an external company that remotely handles a business’s IT infrastructure and end-user systems or devices. MSPs offer services like network, application, system, and security management, which let companies delegate their operations partially or entirely to a third-party service provider to save costs while getting the efficiency needed.

What is an SLA?

An SLA is a contract between an IT service provider and the customer that specifies what services the IT service provider will provide. A signed SLA offers maximum coverage against risks of loss to the insured. Because they establish performance criteria, hold providers accountable, and set clear expectations for both parties’ relationships, SLAs are one of the most essential tools in managed IT services.