What are the benefits of managed services

Managed Services as a model of the future for business solutions

What are managed services?

Managed services are specific and regularly occurring contractual services from the IT area that an IT service provider implements on behalf of its customers. The type, scope and quality of the services to be provided are defined in advance between the parties and contractually agreed in so-called Service Level Agreements (SLA). Billing is usually monthly and is therefore highly transparent. This enables the client to clearly measure the fulfillment and quality of the IT services and, in the event of an improperly or satisfactorily rendered service in accordance with the agreement, to withhold part of the amount to be paid or, under certain circumstances, even a contractual penalty vis-à-vis the To request IT service providers.

Which services are managed services?

Initially, managed services mainly comprised the monitoring of server and network infrastructures by the IT service provider. Since the service was performed via remote maintenance, the term Remote Monitoring & Management (RMM) is often used in this context. In the course of the constantly increasing complexity of IT, the need for managed services in companies has continued to increase. Accordingly, the market has expanded enormously over time, so that the offers of IT service providers are now not limited to the monitoring of IT infrastructures, but also cover a large part of IT.

The typical services provided by managed services in the IT environment include the following:

Server and network management:

  • Virtualization and cloud computing
  • Infrastructure Services
  • Network and server monitoring
  • Storage Services: Provision and maintenance of storage space
  • Network services: transmission bandwidth, connectivity
  • Backup and Recovery Services

IT Operations and Application Management:

  • DevOps management
  • Application Services: Provision of server applications
  • User support / customer service
  • Desktop and Helpdesk Services
  • Unified Communications

IT security and regulatory compliance:

  • Security services: antivirus, antispam and firewalling
  • Authentication services
  • Mobile device management
  • Audit and Compliance Management

Here you will find an overview of the managed services of mVISE AG.

Differentiation from classic IT services and outsourcing

In this context, managed services must be distinguished from both conventional IT services and classic outsourcing. In contrast to classic services, managed services consist of recurring services and are usually carried out via remote management. thanks multi-tenant technology and automated processes IT service providers from Managed Services are also able to look after several customers via just one platform and thus carry out standard tasks such as rolling out updates at the push of a button on various customer systems at the same time. Furthermore, the operational responsibility of the outsourced IT systems of customers in the managed service model lies with the IT service provider, in contrast to the classic service model, where the service provider only reacts in the event of a problem. It is therefore in the interests of the managed services provider to work preventively and to ensure a smooth process from the start.

Compared to outsourcing, the managed service concept differs in that with the latter, only individual sub-areas of IT are outsourced to service providers, which usually require special technical know-how and cannot be covered by the own IT department per se. The IT services transferred are also predefined and clearly delimited on the basis of SLAs. The responsibility for the personnel as well as the entire IT infrastructure including the processes remains with the client.

What are the advantages of managed services for companies?

The main advantage is that the IT staff of companies that use managed services can concentrate on the actual core competencies. New potentials for company growth arise for the client, which would not have been possible without the specialist knowledge of the IT service provider.

Not only large corporations, but also small and medium-sized companies benefit from the many advantages that result from the transfer of managed services to experienced IT service providers. On the one hand, economic and technical risks are reduced, IT systems are always up to date and secured against possible failures. The provision and quality of the services are measurable thanks to SLAs, the operating costs are transparent and calculable. Another advantage is the flexibility and scalability of managed services. These can be individually adapted to the requirements of companies and expanded by simply booking additional services without additional investment in new infrastructures. Conversely, services that are no longer required can also be terminated again, taking into account the agreed contract periods.

What are the challenges?

Despite the numerous advantages of managed services, there are companies that shy away from handing over their IT services to experienced service providers. The fear of being dependent on the service provider and the fact that the price is too high at first glance are often cited as disadvantages. However, it is often overlooked that in the event of total failures, far higher and unexpected expenses arise. These are offset by regulated and clear costs within the framework of an SLA. In addition, the client benefits from the IT service provider's valuable and extensive know-how. Thanks to numerous practical examples, this is set to a wide variety of scenarios and can thus guarantee the regulated and secure flow of day-to-day business. If critical and company-specific areas also remain in the sovereignty of the client, the risk of managed services can be reduced to a manageable minimum.

What are the drivers of demand for managed services?

The statistics also show that the demand for managed services is growing steadily every year and that the concept is establishing itself as the model of the future. Up until now it was mainly large companies that opted for managed services, but the advantages are increasingly being recognized by small and medium-sized companies as well. IT service providers are adapting their business model accordingly in order to offer more managed services. According to a survey by Datto, more than 80 percent of the IT service providers surveyed in the DACH region generate part of their sales with recurring services and, depending on the study, achieve between 32 billion (IDC) and 40 billion euros (Bitkom) per year. A large part of the proceeds goes to the account of cloud solutions. Because the majority of companies have recognized that Digital transformation cannot function without the cloud. A current study by IDG Research Services, COMPUTERWOCHE and CIO shows that 67 percent of all companies are already in the cloud or more than 40 percent plan to use the cloud even more intensively as a source of supply for IT services in the next year.

The main drivers for the increasing trend towards managed services are technical developments. These include, for example, the increasing complexity of IT, the use of public clouds and the implementation of big data, the high number of employee accesses to corporate networks from different locations and devices as well as the increasing threat from cyber crime. But also regulatory reasons such as the increasing requirements in the areas security and privacy are important driving factors. Last but not least, organizational factors such as a lack of know-how and a lack of specialized workers favor the spread of managed services.

The increasing challenges make it essential for companies to form partnerships with experienced IT service providers in the field of managed services in order to maintain their own profitability and flexibility and to be able to react as quickly as possible to current requirements.

mVISE has been offering managed services for many years and supports companies in the selection and implementation of suitable IT services. With individual support and constant monitoring of customer systems, the mVISE expert teams keep our customers free of IT infrastructure tasks so that they can focus on their actual core business and thus work more efficiently.

In the following specialist article, you will find out how the renowned financial service provider BS PAYONE trusted the expertise of mVISE AG as an IT service provider in the field of managed services and was able to benefit from the process and result-oriented support of the mVISE team of experts.