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Managed IT services

Managed services – IaaS or professional outsourcing?

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Peter Thompson

There are many arguments in favour of the idea that managed services make sense for a company. The most important fact is that managed services need to deliver value for there is no point migrating or changing to a managed service if there isn’t new value created.

This growing shift towards managed services isn’t just a fad or a great idea because in reality most customers’ IT environments are operating satisfactorily. Managed services are more about creating efficiencies and extracting greater value out of the investments made or leveraging external skills to increase the productivity of a company.

Managed services options – IaaS or outsourcing?

There are two main managed services options. The first is to outsource the ownership and management of infrastructure. The second is outsourcing helpdesk services which are not limited to but usually include network monitoring, moves, adds and changes. Generally, helpdesk services are provided as part of a service maintenance contract. Infrastructure as a service or outsourcing your helpdesk isn’t a decision that should be taken solely because it’s fashionable.

Managed services work very well where a company does not have an IT department and prefers to outsource the maintenance and management of their IT. In these cases, it’s important to make sure that the advice being received is from experts who have other skills more refined than those exclusively related to IT. The investments and discussions should be centred on increasing productivity, keeping productivity tools running and protecting vital assets of the company.

If a company has an existing IT department, the managed services offering should create a clear delineation between the services that remain in house and the responsibility being outsourced to the managed service provider.

Infrastructure as a service or professional outsourcing? What makes more sense for your business?

From a finance and strategic point of view, the following are strong arguments in favour of considering infrastructure as a service over internally owned assets.

1. It doesn’t make financial sense for the customer to own the equipment simply because they are seeking an outcome rather than an IT asset.
2. The managed services functionality is mostly driven by software and there is a significant difference between SME and enterprise grade software and technology.
3. In order to monitor the equipment, the company will require significant in house experience and time to both learn and manage the infrastructure.
4. There are ongoing maintenance costs such as software licensing and updates.
5. A company probably wants someone else to own the technical problem if something goes wrong.

Find out what type of managed services suits your business. Book a free conslutation with a professional managed services consultant.

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About Peter Thompson

Peter Thompson
Peter Thompson founded GCOMM in 1996. He received his Bachelor’s degree in Software Engineering/Information Systems from Griffith University and his MBA from Nyenrode Business Universiteit in Holland. He believes in building great teams of people, both in business and socially.
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