SyTech IT

So,  Why do we need a managed service provider?

Remember DOS, punch-tape back-ups, dumb desk-top terminals connected to a room-size mainframe, and IT services departments that consisted of a technician or two who scolded individual users for taking up too much memory by failing to empty their files frequently enough? Distant as they might seem, those days are only a few decades—not eons—in the past.

Comparing today’s computing power, storage capacity and software sophistication to those early days is like comparing cosmonaut Yuri Gargarin’s 108-minute orbit of Earth to the creation of the International Space Station. Goals, technology, funding, policies and politics have all changed so much,it’s almost impossible to comprehend that one event led eventually to the other.

Just as the world of space exploration has evolved from an individual rocket carrying one man into space for less than two hours, the world of technology has developed into a universe of its own, demanding fleets of experts to not only maintain the systems but to exploit them to full advantage. That’s why companies need managed services.

Business complexity

The days when technology could be compartmentalized as a distinct function or department within a business are over. Technology is a foundational layer of operations, regardless of the type of business.
Every business function—whether billing, record-keeping, payroll or resource management—is dependent on technology. Those are just the support systems. Revenue- generating activities are also tied into technology. Most industries rely on increasingly complex dashboards, tracking a matrix of business elements, such as manufacturing, inventory, shipping and sales. Productivity depends on real-time capability to maintain precise reporting and coordination between those functions. Even a minimal disruption in service results in operating losses.

Erosion

As technology evolves, technological relevance erodes. The half-life of today’s new technology is ever-shrinking. In other words, the IT system installed today loses value almost as quickly as a new car driven off the sales lot. Technology morphs so quickly that corporate IT departments are hard-pressed to keep up with the latest permutations, even as the technologies grow more indispensable to daily business. This has become one of the many drivers for cloud services.

Accessibility

At the same time that technology and business functions have become ever more enmeshed, modes of access are rapidly evolving. Technology is no longer tethered to a desk—or even a computer. Analyst firm Gartner predicts that, by 2020, 75% of enterprise email users will rely primarily on browser, tablet or mobile clients, rather than their desktops. At the same time, application development projects for smartphones and tablets will outnumber PC projects by a ratio of four to one. Mobility increases the demand for 24/7, worldwide accessibility and support services.

Financial considerations

Saving money is the number one reason customers turn to managed services,  freeing up staff to focus on revenue-generating activities, gaining access to the newest technologies and improving security. Hardware, maintenance, continual certification of staff for new technologies and compliance mandates make keeping up with technological change incredibly expensive. 

These are all areas in which a managed service contract can reduce the customer’s cost of doing business. If you tie in those factors with the benefits of cloud computing, which transforms technology froma capital expenditure (CapEx) to an operating expense (OpEx), the benefits are even larger. Computing capacity is expanded, allowing the in-house IT department to concentrate on strategic projects. Support functions are scaled as necessary through the MSP. The combination creates a perfect storm of financial benefits.

Thinking about outsourcing or extending your IT function?  Get in touch today to find the right solution for your business.