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A managed IT environment is a tightly integrated system of hardware and software as well as data and services that can be configured, protected and managed by an outside party, which is usually called a Managed IT Provider or a Managed Service Provider. MSPs create such environments to ensure that every component of the IT system is fully functional, secure, and efficient. MSPs have centralized control of the environment. This includes user access, policy management, authentication protocols and policy management.
An IT environment managed can be either on-premises or fully in the cloud. Or it can be a hybrid system that combines elements from both.
- Internet connectivity, telecoms/mobility service
- Information security services, data backups and recovery
- Local area networks (LAN), large area networks (WAN), server, routers and switches, as well as cables
- operating systems, computing platforms, business applications/software
- desktop computers, printers, conferencing equipment, VOIP phones, tablets, mobile devices
- Network monitoring and technical support
- Audit, compliance, data analysis, strategy consulting/virtual CIO
- Policies, processes, protocols, and guidelines that govern the use these resources
A managed IT environment should be managed by industry-certified professionals who can help customers to identify and acquire the IT resources that they require, optimize the use of those resources and scale those resources when market risks or opportunities arise. A managed IT environment is managed by skilled specialists from multiple domains. It promises superior end-user experience and security because it is governed under a service level agreement.
A managed IT environment also ensures compliance with industry standards and regulatory frameworks like the General Data Protection Regulation, Information Technology Infrastructure Library (ITIL) and Control Objectives for Information and Related Technologies. Finally, managed services offer strategic access on-demand to trusted insights and recommendations that can help you deliver better results for your business.
The Advantages of IT managed environments
Companies that operate in a managed IT environment enjoy operational, security and financial benefits. These benefits include:
- Focus on the core business. This can often lead to higher service quality and customer satisfaction.
- Improved operational/process efficiency. Software, utilities, and equipment that works well and doesn’t crash are great for your team’s productivity.
- Constant monitoring. Monitoring is a constant requirement. Minor problems are identified and dealt with before they become serious issues. This results in downtimes being reduced to a minimum.
- Service quality and consistency guarantee. Most MSPs offer some guarantee regarding the reliability and quality of their services through a service agreement. Many MSPs offer 24/7 technical support to help support such a guarantee.
- One point of contact. Competent MSPs are able to serve as your single point-of-contact for everything IT. You have almost instant access to all the technology solutions you need to grow your business, increase product diversification, improve process automation, manage vendors, or even augment staff. MSP specialists and experts can help with a variety of problems and offer advice to solve any technology problem your company may face.
- Minimal capital expenditures. MSP customers have the option to access premium networks, tools and resources at lower prices. MSPs typically acquire premium resources and offer them as managed services. Customers can benefit from these resources without having to purchase. An MSP can help you implement technology upgrades more quickly and efficiently with less strain on your budget. Even small businesses without the resources or the expertise to deploy cutting-edge technology can do so easily.
- Higher margins. Improved process and operational efficiencies can lead to higher business margins, which in turn will translate into improved profitability.
- Predictable billing. Most MSPs offer transparent billing that is simple and straightforward. They charge a monthly or an annual fee. This makes it easy for customers to manage their finances.
- Stronger IT security. MSPs adopt a vigilant approach to cyber security. They adhere to strict security and data protection standards by default. They are familiar with the horror stories and the best resources to help protect your network, data, and systems from any threat, human or not. When it comes to risk mitigation, anti-malware controls and data backups, disaster recovery and data backups, they are the ones to listen to.
- Strategic advantage. MSPs that excel serve as strategic partners for clients’ long-term success are the best. MSPs create and implement technology solutions that enable companies to be more competitive, better at their jobs, and faster in responding to risks and opportunities. MSPs can also provide institutional knowledge and continuity to your organization. MSPs can provide valuable advice in business planning, compliance reviews, or needs assessments. They are your greatest asset in the future-proofing of your company.
The Disadvantages of managed IT environments
Unmanaged IT environments can be hampered by a variety of factors. Unclarified business goals can lead to inaccuracies in needs assessments. Customers might have unrealistic expectations of the MSP’s services if they are not provided with a clear SLA or lack thereof. Operational hiccups can also be caused by multiple MSPs offering solutions that are not interoperable. Ransomware has also led to supply-chain risk due to vulnerabilities in third-party solutions.
This list lists known and established risks, as well as “perceived”, risks as seen from the client’s point of view.
Perceived risks
- Information that is confidential. MSPs should be experts in cyber security. However, partnering with one could mean sharing trade secrets and sensitive data with the MSP. This may sound alarming, but data protection is a priority for MSPs. Most will help you manage your data in a way that reduces the chance of an internal or external breach. Partner only with industry-recognized MSPs to further reduce your exposure.
- An incorrect, inadequate or excessive MSP solution. Potential clients may be concerned about whether the MSP’s solutions will meet their needs. A MSP may not have enough knowledge of your business to offer a customized solution. Instead, they might just recommend a generic solution that is subject to trial and error. This scenario is unlikely. Instead, communicate your goals and expectations, as well as all data points necessary for the MSP to create a cost-effective, unique solution for you company.
- Service that is not sufficient. MSP partnerships can be misunderstood by organisations as a panacea for all of their technology problems. Many companies may feel overwhelmed once all the details have been discussed. Unless a company is willing to outsource its entire IT infrastructure to an MSP it will still have to deal with a variety of technical issues not covered in the service agreement.
- Only virtual support. You can only assume that MSPs manage client systems remotely. If so, you should look at the local directory. Global MSPs have regional offices which allow local branches to send human technology teams and on site consultants to customers who request them. You can also check out the increasing number of MSPs who are local-focused. These are the best MSPs to partner with if your company needs local support.
- Expensive. As a first impression, this could be true. However, compared to the actual cost of setting up your IT infrastructure and hiring IT professionals to manage it, almost any MSP contract seems like a bargain. The cost of an MSP contract will increase with the amount of responsibility that you outsource to them. You need to reduce expenses by conducting an audit of your tech resources in relation to your business goals.
Recognized Risks
- Long-term contracts are obligatory. Customers might feel constrained to take immediate action if their relationship has gone wrong with an MSP because managed services usually have terms of at most one year. It’s true that switching MSPs can prove difficult, especially if there are no clear provisions or penalties for those who terminate the contract before it expires. It is a good idea to screen potential MSP partners before you sign anything.
Exposure to the supply chain. Cyber criminals can attack vendor-customer networks and exploit software weaknesses to cause a supply chain breach, as demonstrated in the Kaseya ransomware attacks. Malware gangs can even insert malicious code into updates and patches to applications that are commonly used by large IT networks, such as managed service providers and enterprises. However, this does not mean that you should cut ties with vendors or MSPs and instead run your business in a closed-off location. Cyber-attacks can target any vendor software or third-party software. This means that malicious hackers can target your company without or with an MSP. MSPs can be trusted partners in cyber security. However, working with one is still a net positive.
How do you choose a provider to serve your needs?
It’s better to start a relationship with a good MSP partner right away. This will help avoid poor MSP relationships. Here are some tips to help you do this:
- MSPs may not be equally qualified or equipped to handle your specific business needs. MSPs that have established successful partnerships with companies similar to yours in size, market and line of business should be considered. MSPs that have a strong presence in your area (in the event you require onsite tech support) should be considered.
- A shorthand way to assess the competence of MSPs is to use industry standards.
- You can check out third-party review websites. You can get feedback from clients of prospective MSPs if you are familiar with them. Engage professionals in technology reviews via comment sections or forums to obtain more information and address any questions/concerns.
- Reach out to each MSP on your shortlist and get to know them.
What should you look out for in a MSP?
Select MSPs who have the following credentials on their resume/company profile
- Excellent track record (industry Awards, impressive portfolio with recognisable customers, etc.)
- Third-party accreditations and industry certifications
- Customer feedback is very positive
- High Net Promoter Score (NPS).
- Reputation for as many of these attributes as possible
- Commitment
- Quick Responses/Quick Solutions
- Flexibility/Adaptability
- Secure Cyber Security
- Strategic Insight/Proactive Service
- Reasonable pricing
Conclusion
The number of companies that choose to operate their businesses in a managed IT environment is on the rise. These companies aren’t following any fad, as the data shows. These companies are not following a trend. They are responding to their survival instincts and pursuing their goal of winning. Shifting economic realities, the normalisation of remote work and cyber security threats, as well as fierce competition, force smart businesses to rethink and eliminate risk from their business models.
Your team can get the resources and conditions they need to excel in their job with a managed IT environment. A managed IT environment provides companies with reliable tools, efficient processes and protected networks that allow them to cut costs and reduce risk.