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Executive Overview
Even as information technology (IT) systems, software and networks become more sophisticated, they are also becoming more complicated and difficult to manage in a costeffective fashion. And, as IT becomes more pivotal to the day-to-day operations of organizations of all sizes, it has also become imperative that organizations optimize the availability and performance of their IT in order to gain the greatest economic value from these investments. Even more importantly, it is critical that they minimize the risk of any IT failures which could adversely impact their business.
This IT management challenge can be particularly daunting for small- and mid-size businesses (SMBs) - commercial and non-profit organizations of 30-400 employees - that typically lack enough in-house skills and resources to systematically manage today's technologies and business applications. Market researcher Gartner estimates that 80% of the dollars companies spend on IT is dedicated to "keeping the lights on" and represents "dead money" which does not contribute directly to business growth.
Compounding this problem is the escalating number of Internet viruses threatening to disrupt businesses that either don't have the right security systems in place or fail to regularly update their anti-virus, spyware, malware and other security software with the proper patches.
As a consequence of these growing challenges, many SMBs feel like they are not getting the return on their IT investment (ROI) they expected and are often at the mercy of their IT rather than fully leveraging it to achieve their organizational objectives. And, at a time when many SMBs are facing stiff budgetary constraints, a growing number of organizations are looking for a new way to satisfy their IT requirements and reduce their day-to-day IT management costs.
These forces are driving a growing number of SMBs to consider alternative strategies to solve their IT problems. Many are considering outsourcing their IT operations to an outside IT service company.
While outsourcing can be an appealing way to offload the hassles of day-to-day IT maintenance, not every IT service company is capable of proactively managing an SMB's IT environment to minimize the risk of problems occurring and doing so in a cost-effective manner that can also respond to the SMB's evolving business requirements.
Managed services have become an increasingly attractive ëout-tasking' alternative to traditional outsourcing for many SMBs. Managed services enable the SMB to assign specific IT management responsibilities to the IT service company without relinquishing control of their IT operations. Managed service arrangements also typically include more flexible contractual agreements and better reporting mechanisms to ensure the managed service provider (MSP) is meeting the SMB's needs.
Managed services continuously monitor and proactively manage an organization's IT environment to address potential problems before they can disrupt their operations. They can also optimize the performance of end-users' systems to allow them to do their jobs better.
This white paper will describe the IT issues that are driving SMBs to adopt managed services; examine how these services work; show how these services are helping companies today; and provide a business case for SMBs trying to determine if managed services are right for solving their IT challenges.
Why Managing IT Can Be a Frustrating Task for SMBs
Although the computing needs of SMBs may seem less complicated than the IT issues facing large corporations or major non-profit institutions, IT complexity is still a major challenge for SMBs. System failures are more commonplace in many SMBs because these organizations typically lack the in-house skills and resources to implement essential management tools and perform routine management tasks. In addition, the threat of computer viruses, spyware, malware and other security attacks is now an ongoing concern. As a result, many SMBs spend more time reacting to IT problems rather than fully leveraging the power of their IT investments to meet their business objectives. For instance, many SMBs unintentionally overload their servers, causing crashes that often lead to disruptions to their businesses and valuable data being lost.
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