What managed services offer greatly depends on the level of service specified in your contract. Yet, no matter what your services include, there are still several common advantages of the partnership. As CloudSecureTech notes, managed IT services can boost operational efficiency by 45% to 65%.
“It’s important to strategically choose a managed services provider who aligns with your business goals. However, you will probably still be better off using one compared to not using one.” – Lambros Bowers, Vice President, NetOps Consulting.
That raises questions about what managed IT services are. How is it that any business model can offer similar benefits even if various providers offer various levels of service? The reason comes down to how managed IT services work.
The rest of this article is dedicated to answering these questions. We will explore the managed IT definition, what managed service providers (MSPs) are, how the service model works, and where it came from.
The Managed IT Services Definition
Managed IT services involve outsourcing a range of IT tasks and responsibilities to a third-party provider. This model gives businesses access to specialized expertise, tools, and technical support for maintaining and managing their IT infrastructure.
Service providers handle tasks like monitoring networks, managing software updates, and addressing IT issues. These services are typically delivered through a subscription-based agreement tailored to the needs of the organization.
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What is an IT Managed Services Provider (MSP)?
Managed IT services provider (MSP) is the term for the third-party provider who will offer managed IT services. MSPs use advanced tools to monitor systems, identify potential issues, and keep operations running smoothly and efficiently. They can also handle technical complexities like cybersecurity and cloud services to support business needs efficiently.
How Managed Services Work
Managed services operate through a structured agreement where the provider delivers support and expertise tailored to the business’s requirements. This involves continuous oversight of systems and proactive actions to resolve issues and address challenges. The process is designed to align IT performance with organizational priorities.
Here are the specific steps involved in an MSP engagement.
1. Signing The Service Level Agreement (SLA)
The provider and client formalize their agreement by signing an SLA. The SLA defines the specific services provided, response times, and the responsibilities of both the client and the provider. This agreement clarifies what the client can expect and holds the MSP accountable.
2. Initial Onboarding Process
The provider gathers information about the client’s IT environment, including systems, user needs, and existing technology. This step builds a clear picture of the infrastructure and identifies any immediate issues. This information is used to create a tailored service plan.
3. Conducting System Assessments
During the system assessment, the provider evaluates the current state of the client’s IT infrastructure. This analysis identifies security gaps, inefficiencies, or outdated components that may affect performance. It provides critical insights for planning improvements.
Since 75% of cyber attacks that exploit systems vulnerabilities exploited vulnerabilities that had been present for 2 or more years, conducting such an assessment can make a world of difference.
4. Creating an Action Plan
The action plan outlines specific steps to optimize the client’s IT environment and align it with business goals. This strategy includes prioritizing upgrades, addressing vulnerabilities, and improving efficiency. It serves as a roadmap for enhancing technology performance.
5. Establishing Communication Channels
Clear communication methods like ticketing systems, client portals, and regular meetings allow seamless interactions between the client and provider. These tools support transparency, quick issue resolution, and consistent updates on progress.
6. Deploying Monitoring Tools
The provider installs monitoring solutions to track system performance, detect issues early, and minimize downtime. These tools provide real-time visibility into the health of the IT environment, so that the provider can proactively respond to potential problems.
7. Ongoing Support
Once everything is set up, the provider performs regular maintenance and updates based on the client’s needs. They will also use what they learned about the client during onboarding to provide tailored solutions to IT support inquiries whenever needed.
8. Regular Reviews
Periodic reviews offer an opportunity to analyze performance metrics, discuss system improvements, and plan for future needs. These meetings help adapt strategies to align with the client’s changing goals and industry developments.
Here are some of the key discussion points that you and your MSP may go over during a review.
| Key Discussion Point | Details |
| Performance Metrics | Evaluate system uptime, reliability, and responsiveness to identify areas for improvement. |
| Security Posture | Discuss recent threats, implemented mitigations, and strategies to reduce risk. |
| System Upgrades | Review and plan updates to hardware, software, or network components to meet future needs. |
| Cost Management | Analyze IT spending, identify savings opportunities, and align the budget with goals. |
| Strategic Alignment | Ensure IT strategies support the client’s evolving objectives and industry trends. |
Where Did The MSP Service Model Come From? A Brief History
The MSP model originated in the 1990s with the rise of application service providers (ASPs). ASPs offered remote support for IT infrastructure, which marked a shift from the traditional break/fix approach to a more proactive, managed services model.
However, MSPs as we know them today were not fully realized until the early 2000s. Here is a brief time of what happened.
1. Early 2000s: Emergence of Proactive Monitoring
MSPs shifted from reactive IT services to proactive monitoring during the early 2000s. This shift was largely due to the wider availability of remote monitoring and management (RMM) tools. However, this trend evolved into a widespread expectation from the MSP model.
2. Mid-2000s: Expansion of Service Offerings
MSPs expanded their services in the mid-2000s as a result of rapidly changing technology use. For example, 2007 saw the introduction of the iPhone, which led to widespread adoption of smartphones for business use. As a result, many MSPs began offering mobile device management (MDM) services.
3. Late 2000s: Adoption by SMBs
By the late 2000s, small and medium-sized businesses (SMBs) increasingly adopted the MSP model. SMBs found MSPs more cost-effective and scalable than maintaining in-house IT departments. Outsourcing IT management allowed SMBs to focus on core business activities. Therefore, the service model became a staple in the business landscape.
Today, the MSP model is fairly well-established. However, these services continue to evolve by incorporating new technologies such as advanced cloud computing, cybersecurity, and AI systems.
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Start Your MSP Journey With NetOps Consulting
While having an MSP is better than none, you still need to choose a reliable provider to protect your IT systems. So, it’s important to strategically vet providers to make sure that they can proactively meet your needs before you sign a contract.
If you are ready to start your search, consider NetOps Consulting. We provide 20% to 25% cost savings guarantees and can resolve most IT issues in 5 to 15 minutes on average. Work with our team to see what 100+ years of combined experience can offer.
