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Why has demand for Managed Services grown?

Demand for managed services is at all all-time high; new managed service providers (MSPs) are continuously emerging in the marketplace as more small to medium enterprises hand over their IT needs, freeing up internal resources to focus on critical activities.

Wooden Stick Men

This growth in managed services is not expected to slow down anytime soon, with the industry projected to be worth a whopping 257.84 billion USD by 2022.

So why are so many enterprises making the switch?

Complexity of IT environments/ Lack of technical expertise

New and disruptive technologies are always being introduced, and for an enterprise managing these, it becomes a challenge when there’s no expertise or resources to keep up with the pace. MSPs are dedicated to what they do, employing the best IT staff who are highly competent in the services and solutions they provide, working proactively to resolve issues and manage upgrades. Think of this as having IT experts on demand; teams in managed service providers are readily available – 24/7, 365 days a year.

Migration to the Cloud

A few years ago, it was quite common for enterprises to be sceptical about moving to the Cloud. There was a fear of the unknown created by not having any control, not knowing where applications were hosted and concerns around reliability and data security. Now, it’s a different story, and the fear of missing out on the Cloud is a significant driver in investment, largely overriding those earlier worries. IT leaders are concerned that their enterprises cannot digitally transform without the advancements the Cloud brings.

Some key benefits of the Cloud include:

Security concerns

Cybercrime is evolving rapidly with millions of enterprise accounts compromised globally every year. As enterprises grow, so do cybersecurity risks and chances of a security breach. The security landscape is complex and requires expertise to understand and navigate. Managing security in-house means that enterprises can’t always keep on top of the latest technologies due to resources and costs.

MSPs have the know-how and advanced technologies which have been tried and tested over several years with varieties of security threats. As new offerings continuously arise in the marketplace, MSPs update their portfolios, ensuring that their customers’ data protection is maximised 24/7.

Common managed security services include managed firewall, intrusion detection, virtual private network, endpoint protection and vulnerability scanning.

Cost Savings

Managed services are typically offered on a flat-fee, monthly basis. Services required can be chosen as and when needed and fees are usually based on users, devices and services which are priced at different levels. Budgeting becomes easier as costs are predictable and overheads are reduced, as infrastructure is managed proactively, before network downtime and extensive damage occurs.

Switching to managed services can be a mental leap for enterprises which are used to running IT operations themselves. The loss of control seems daunting but there’s reassurance in knowing that there’re several competent and reliable MSPs out there solving problems for hundreds upon thousands of customers. Given the importance of agility and focusing on core competencies in today’s market, enterprises can’t afford to be missing the wave.

It’s critical to ensure that the right decisions are made and that migrations are managed strategically, rather than letting them happen sporadically and unplanned. The last thing any enterprise wants is to be relying on a hazy assortment of impulsively chosen MSPs with inconsistent contracts. That’s the real danger of not making a proper decision.