Refocus on what Matters with Managed Services
Cloud Enterprise Services

Refocus on what Matters with Managed Services

By: | Subhash Dubey

Publish Date: July 28, 2017

As businesses showcased rapid growth and transformation, the need was for a service provider who could monitor and manage most or all of their functions, freeing their resources for more productive tasks. Small companies had limited staff and functionalities, and large enterprises had their services focused on their legacy systems and couldn’t be spared to tend to every aspect of the organization. To capitalize on investments, companies needed support from managed service providers to minimize business risk, manage uncertainty, improve agility, leverage cloud technologies, and control costs while reducing the complexity of their business environment.
Organizations realize that an end-to-end cloud solution is far more than tools, processes, and technologies. The real value is in the services delivered and the expertise that managed cloud services providers offer. Client focus is now on immediate fulfillment coupled with quick services that are accessible from any platform, device or location. Aligned with this thought process, businesses are also leveraging technologies like cloud, IoT and big data in their strategic plans for managed services.
Managed service providers offer their customers a range of expertise that includes the latest databases and e-commerce platforms, as well as automation tools. Managed cloud also customizes IT functions based on client requirements to maintain in-house or on-cloud, leaving rest to its chosen service provider.

Growing relevance of Managed Services

Managed services today are more relevant than ever, as they provide value and keep all the industry verticals up to speed. According to reports, by 2018, at least half of IT spending will be cloud based, reaching 60% of all IT Infrastructures, and 60–70% of all software, services, and technology spending by 2020. It is also expected that the managed services market will be worth more than 242 Billion USD by 2021.

Relevance of Managed Services for customers

By partnering with a managed service provider, experts can design and tailor an architecture specific to a customer’s application requirements. The service provider will also update the organizational architecture on a continual basis as the requirements change and as new features and cloud services become available. The service provider should be able to offer services across a wide range of technologies and deployment models. The combination of choice and expertise ensure that the managed services vendor can deliver an architecture that is designed to meet an organization’s application’s specific performance, availability and scalability requirements. The need for retaining costly architects in-house will no longer be there. Some of the prominent benefits are summed up below.

  • Improved security
  • Proactive approach to IT problems
  • Better uptime
  • Gain access to newer technologies
  • Cost savings over in-house IT
  • Free internal staff for strategic work
  • Tap into cloud solutions
  • Lack of internal IT
  • Handle remote office IT

Outsourcing is not mere cost-cutting

Driven by a host of powerful forces—including globalization, deregulation, and consolidation—leading enterprises have come to recognize that they must transform their businesses constantly to sustain competitive advantage. The quality of managed services has improved over the years and is more about creating value for both the client and provider. When businesses lack the required skill sets, outsourcing adds more value by bringing in the necessary skilled infrastructure and is more than just a cost-cutting procedure.


Partnerships are comfort zones

Partnerships act as a buffer against all variabilities as not all businesses can afford to take risks and face the consequences. Enterprises are partnering with managed Service providers to reduce their time spent managing them all. Additionally, the talent gap continues to widen. The constant shortage of experienced personnel, especially technically knowledgeable talent drives more enterprises to seek outsourcing work to Managed service providers. The right partnerships can leverage the provider’s knowledge of infrastructure technology, increasing the likelihood of a successful outcome.

Managing Big Data

Enterprises today are dealing with large amounts of high-velocity data from variety of sources. As big data continues to increase, companies seek new technologies to help them cope and to gain a competitive advantage. Organizations are looking towards managed cloud services as they get a deeper understanding of the data ecosystem, knowing more about the location of their data and the access to it.

Cost effective

A recent study found that enterprises will allocate more of their IT budgets to hosting and cloud services in 2018 as the reliance on third parties for infrastructure, applications, and security increases. The report states that large enterprises will spend 34 percent of their IT budgets to hosting and cloud services in 2017 which is 28% more than the previous year. Companies are relying heavily on external sources of infrastructure, application, management and security services. The increase in IT spending for cloud services is being done to cut costs so organizations can focus on their core business.

Effective automation

All the repetitive administrative or operational tasks and processes are now effectively automated by managed services ensuring that daily operations are not hampered by ineffective management, unscheduled maintenance, hardware or software failures, etc.,.
Network deployment and integration, mobile and other wireless technologies continue to develop, as do management requirements. Managed services are now playing a far more strategic role in many organizations, and have become a key management tool for enhancing business agility, conserving capital, and managing IT operations costs. Managed services provide the right support to ensure a superior customer experience and help to connect with the right customer at the right time and with the right services.

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