Managed IT Services: Pros/Cons, Service Types, Pricing, and More

What Are Managed IT Services?

Managed IT services enable organizations to outsource IT tasks to a vendor as contracted or subscription services. These services can be used to relieve workload from in-house teams, supplement teams that are unable to meet IT demand, or to replace in-house teams. Managed service providers (MSPs) can be useful for ensuring 24/7/365 coverage of IT duties and can contribute specialty knowledge or expertise that may not otherwise be available.

IT services can encompass many responsibilities but typically include:

• Remote monitoring and management of hardware and infrastructure.
• Security services, including monitoring, penetration testing, threat hunting, or incident response.
• Cloud management, including configuration, monitoring, and management of cloud services.
• Communications support, including IP telephony services.

This is part of an extensive series of guides about hybrid cloud.

In this article:

• History of Managed IT Services
• Managed IT Service Benefits
• How Are Managed IT Services Priced?
• Common Types of Managed IT Services
• Considerations for Managed IT Services Providers
• Steps to Effective Decision Making About IT MSP

History of Managed IT Services

The concept of managed IT services began in the 1990s with the advent of application service providers (ASPs). ASPs offered limited remote management and hosting of applications, laying the groundwork for more comprehensive services. As technology evolved, so did the demand for more extensive IT support, leading to the rise of managed service providers (MSPs) in the early 2000s. These providers expanded their offerings to include a broad range of IT services, from network management to security solutions.

The introduction of cloud computing further transformed managed IT services. With cloud technologies, MSPs could offer scalable and flexible solutions, enabling businesses to access advanced IT capabilities without significant capital investment. The proliferation of cybersecurity threats also spurred growth in managed security services, as organizations sought specialized expertise to protect their digital assets.

Today, managed IT services have become integral to many businesses, providing essential support and allowing organizations to focus on their core operations. The continuous advancements in technology ensure that MSPs remain a vital component of the IT landscape, offering ever-evolving solutions to meet the dynamic needs of their clients.

Managed IT Service Benefits

• 24/7 support and monitoring: MSPs provide round-the-clock monitoring and support, ensuring that IT systems are always operational. This continuous oversight helps prevent downtime and quickly addresses any issues that arise. With 24/7 support, organizations can be confident that their IT infrastructure is maintained and any problems are resolved promptly, minimizing disruptions to business operations.
• Access to expertise: MSPs bring specialized knowledge and skills that may not be available internally. This access to a broad range of expertise allows organizations to benefit from the latest technologies and best practices without the need for continuous training and development of in-house staff. MSPs often have experience across various industries, providing insights and solutions that can enhance IT operations.
• Cost efficiency: Outsourcing IT services to MSPs can be more cost-effective than maintaining an in-house team. MSPs offer predictable pricing models, reducing the need for significant capital expenditure on IT infrastructure and allowing for better budget management. By leveraging the expertise and economies of scale that MSPs provide, organizations can achieve higher efficiency and productivity at a lower cost.
• Enhanced security: MSPs offer comprehensive security services, including monitoring, threat detection, and incident response. Their dedicated security teams are equipped to handle the latest cyber threats, ensuring that an organization’s data and systems are protected. By staying updated with the latest security protocols and compliance requirements, MSPs help businesses mitigate risks and maintain a strong security posture.
• Focus on core business: By outsourcing IT management to MSPs, organizations can focus on their core business activities. This shift allows internal teams to concentrate on strategic initiatives and innovation rather than day-to-day IT maintenance and troubleshooting.

Common Types of Managed IT Services

Remote IT Infrastructure Monitoring

Remote IT infrastructure monitoring involves continuously supervising an organization’s IT environment to ensure optimal performance and detect potential issues before they become critical problems. This service includes monitoring servers, networks, and applications for performance metrics, security breaches, and operational anomalies.

By providing real-time alerts and regular reporting, MSPs help organizations maintain system reliability, minimize downtime, and address issues proactively, ensuring that IT infrastructure operates smoothly and efficiently.

Managed Security Services

Security services offered by MSPs cover a wide range of protective measures designed to safeguard an organization’s digital assets. These services include firewall management, intrusion detection and prevention systems, anti-virus and anti-malware solutions, and comprehensive security audits.

Additionally, MSPs provide advanced services such as security information and event management (SIEM), threat hunting, and incident response. By leveraging these services, organizations can enhance their security posture, reduce the risk of cyberattacks, and ensure compliance with industry regulations.

Managed Cloud Infrastructure

Managed cloud infrastructure services involve the administration and optimization of cloud environments, whether public, private, or hybrid. MSPs help organizations with cloud strategy, migration, configuration, and management, ensuring that cloud resources are used efficiently and securely.

These services include monitoring cloud performance, managing workloads, optimizing costs, and ensuring compliance with regulatory standards. By outsourcing cloud management, businesses can leverage cloud benefits while focusing on their core operations.

Managed Data Analytics

Managed data analytics services enable organizations to harness the power of data to drive informed decision-making. MSPs provide tools and expertise for data collection, storage, analysis, and visualization. Services may include setting up and managing data warehouses, performing complex data analysis, and creating dashboards and reports.

With managed data analytics, businesses can gain insights into operational performance, customer behavior, and market trends, helping them to make strategic decisions and improve overall efficiency.

Managed Communication Services

Managed communication services encompass the management and support of an organization’s communication systems, including VoIP (Voice over Internet Protocol), unified communications, and collaboration tools. MSPs ensure that these systems are always operational, secure, and optimized for performance.

Services typically include setup, configuration, monitoring, and troubleshooting of communication platforms, enabling seamless and reliable communication both within the organization and with external stakeholders.

Managed Print Services

Managed print services (MPS) involve the oversight and management of an organization’s printing environment. MSPs handle printer maintenance, supply management, and print workflow optimization. These services aim to reduce printing costs, improve document security, and enhance productivity by ensuring that print resources are used efficiently.

MPS also includes remote monitoring of printers to detect and resolve issues promptly, minimizing downtime and ensuring uninterrupted access to printing capabilities.

Managed Backup

Managed backup services ensure that an organization’s data is regularly and securely backed up, providing protection against data loss due to hardware failures, human errors, or cyberattacks. MSPs offer backup solutions that include on-site, off-site, and cloud-based backups, tailored to meet the specific needs of the organization.

These services often include data recovery testing, backup monitoring, and restoration services, ensuring that critical data can be quickly and reliably recovered in the event of a disaster.

How Are Managed IT Services Priced?

Managed IT services are typically priced based on a subscription model, with costs varying according to the level and scope of services provided. Common pricing models include:

1. Per-device pricing: Charges are based on the number of devices managed, such as servers, workstations, or mobile devices. This model is straightforward and scales easily with the number of devices in use.
2. Per-user pricing: Fees are based on the number of users within the organization, providing support for all the devices a user may need. This model is ideal for companies with employees who use multiple devices.
3. Tiered pricing: Services are bundled into packages with different levels of support. For example, basic, intermediate, and advanced packages might offer increasing levels of service, allowing organizations to choose the tier that best fits their needs and budget.
4. À la carte pricing: Services are offered individually, allowing businesses to select specific services they need. This model provides flexibility but can lead to higher costs if many services are required.
5. Value-based pricing: Costs are determined by the value delivered to the client rather than the specific services provided. This model focuses on outcomes and performance improvements, aligning the MSP’s incentives with the client’s business objectives.

Limitations of Managed IT Services

While managed service providers can offer many benefits, there are also some limitations you should be aware of:

• Holding providers accountable—when choosing a provider you should make sure they have clearly defined and actionable SLAs. Contracting your IT tasks is to a provider that you cannot hold accountable results in frustration and losses. This accountability should include clear reporting of services rendered and system performance.
• Getting strategic IT planning—managed IT providers should help you strategically plan infrastructure upgrades, configuration changes, and additions. If they don’t, you won’t be able to derive full value from managed services. This means providers need to not only understand your current infrastructure but make efforts to manage it with respect to your business goals and objectives.
• Finding a provider with a good track record—not all providers are created equally. When considering a provider, you need to verify their track record with other organizations in your industry and scale. Reliable MSPs should let you know which comparable organizations they are working with.

Steps to Effective Decision Making About IT MSPs

When selecting an IT MSP, there are several steps you can take to ensure that the one you choose fits your needs.

Assess Current IT Systems

Taking a thorough assessment of your current IT needs and costs is the first step to finding an MSP. You need to understand what infrastructure and workflows you need managed, what resources you currently have, and what your budget is for management. During this assessment, you should also pay attention to what your business goals are.

For example, if you want supplemental support for an existing IT team, you would consider different providers than if you want a self-contained team. Additionally, consider whether managed services make sense in the long run. While it may be cheaper at first to contract out IT management and maintenance, as your organization grows it may make more sense to invest in acquiring and training an in-house team.

Request An Audit of Your Current Systems

Once you’ve narrowed down a list of providers, you may want them to perform an audit of your systems. This can help you determine if they have the support and experience needed to manage your assets.

You want to make sure that providers are competent with any specialized hardware or software you are using or intend to use in the future. You should also ensure that they are familiar with any industry or compliance standards that apply to your systems and data. If providers struggle to properly audit your systems it is unlikely that they will be able to support systems effectively.

Consider Scalability and Flexibility

When assessing potential vendors, pay attention to the capacity of the services they can supply. Providers should be able to scale with you and ideally should have more bandwidth, service hours, and expertise than you need. If they do not, then your provider might become the bottleneck reducing your capacity and performance.

This is particularly important if you are planning big infrastructure changes in the near future. For example, cloud migration. You need to identify a provider that can support any growth your organization goes through without sacrificing performance or coverage.

How Cloudian Powers Storage for Managed IT Services

MSPs are often required to deliver affordable, scalable capacity availability. In addition to meeting these requirements, MSPs need to provide seamless integration without wasting too many resources on support. To help MSPs meet these demands, Cloudian provides two types of services:

• Storage as a Service—Cloudian offers scalable storage solutions, including simple management, built-in data protection, and interoperable S3-API compatibility. Cloudian supports multi-tenancy with native QoS and billing, as well as white label user interfaces.
• Backup and Archive as a Service—Cloudian HyperStore is an object storage solution you can use as a backup target. You can deploy HyperStore nodes in any location that requires capacity storage, and then scale as needed. Cloudian provides data protection and erasure coding options, which are configurable for up to 14 nines data durability.

Learn more about Cloudian solutions for managed service providers.