Introduction
Managed Service Providers (MSPs) refer to outsourced IT companies that offer an array of services to businesses of all sizes across various industries. They provide support to companies by managing and monitoring their IT infrastructure, cybersecurity, data backup, cloud solutions, and more.
MSPs allow businesses to optimize their IT operations, focus on core functions, and improve overall productivity and profitability. According to reports, the global Managed Services market size is estimated to grow from $223 billion in 2020 to $329 billion in 2025. This growth pattern demonstrates the relevance of MSPs for business operations.
In this article, we will be discussing what MSPs are, their benefits, how to choose an MSP, trends to watch in 2021, the risks of not using an MSP, and MSP case studies.
Breaking Down MSPs: A Comprehensive Guide to Understanding Managed Service Providers
MSPs are third-party IT companies that specialize in managing different aspects of a company’s technology infrastructure. They offer a range of services from various IT fields to their clients and can provide ongoing support as required, all for a monthly fee.
Their services typically include cybersecurity, network monitoring, software and application management, cloud computing, data backup and recovery, desktop management, hardware support, and more. MSPs work by providing and managing the technology a company needs to operate, rather than companies needing to hire and maintain a full in-house IT support team.
There are three types of MSPs: the first offers a la carte service services such as cybersecurity or cloud solutions, the second offers broad IT solutions, while the third one is hybrid which provides a combination of both.
The pros of using MSPs are that you get access to the latest and most effective technology and practices, save money by outsourcing IT functions, reduce downtime, and ease the workload of your existing staff.
The Benefits of MSPs: Why Your Business Needs Managed Services
The benefits of MSPs for businesses are numerous. One of the most prominent benefits is improved cybersecurity. MSPs are trained and equipped to manage cybersecurity threats. They can implement and monitor security measures that ensure the safety of company systems and data.
MSPs also offer improved efficiency. They can streamline IT operations, reduce downtime, and resolve issues promptly before they cause significant problems. A recent survey showed that 59% of small and medium-sized businesses reported improved cybersecurity since partnering with an MSP, while another 48% reported an increase in efficiency.
Another prominent benefit of MSPs is cost reduction. Companies can save on the cost of hiring and paying full-time staff, paying for downtime caused by IT outages. With MSPs, companies are only required to pay for the specific services they need.
Choosing the Right MSP: How to Select the Best Managed Service Provider for Your Business
One factor to consider when choosing the right MSP is experience. Look for MSPs with experience working with businesses similar to yours and those with knowledge in your industry. Reading reviews from previous clients, assessing pricing structure, and evaluating services provided, compatibility is an essential part of the selection process.
From a real-world perspective, some businesses have successfully chosen MSPs by evaluating them based on industry-specific experience, reference checking and system audits, contractual provisions, and service level agreements (SLAs). A clear understanding of contract terms and services offered is important to avoid surprises and ensure a mutually beneficial agreement.
MSP Trends to Watch in 2021: How Managed Service Providers are Adapting to a Changing Landscape
The MSP landscape is continually evolving, so it’s important to stay updated on the latest trends. One of the most notable trends in 2021 is increased use of automation and AI. Automation, such as chatbots, can improve customer service while AI can enhance cybersecurity protocol.
In addition, there is increasing demand for cloud and hybrid cloud solutions, pushing MSPs to embrace more cloud-based applications and services. This trend is driven by the desire for remote access, lower costs, and increased flexibility.
The Risks of Not Using an MSP: How Poor IT Management Could Cost Your Business
Failing to use MSPs can threaten a business’s viability. Poor IT management can lead to system failures, data loss, and cybersecurity breaches. Lost data can lead to expensive recovery costs and litigation, erode a business’s reputation, and permanently damage customer trust. Also, lack of IT infrastructure and support can hinder business productivity and growth.
In real-life scenarios, businesses that suffer due to poor IT management include Equifax, Target, and Marriott Hotel, all of which had serious data breaches that resulted in significant financial losses and months, sometimes years of legal battles and reputational damage.
MSP Case Studies: Real-Life Examples of How Managed Service Providers Have Helped Businesses Succeed
Companies have experienced various success stories working with MSPs. For instance, an MSP partnered with an energy conservation company in Pennsylvania to implement cloud computing solutions, which improved collaboration, made managing information easier, and reduced downtime.
In another case, an MSP helped a healthcare organization in Delaware to transition to a cloud-based system that provided secure access to medical records and electronic storage of records. This helped reduce the risk of data loss and improved efficiency.
Conclusion
MSPs are an essential part of modern-day business operations. As discussed, they offer numerous benefits, from enhanced cybersecurity to cost-saving advantages. MSPs also provide expert IT support to organizations, allowing them to focus on core functions and increase productivity.
When choosing the right MSP, consider experience, compatibility, and reviews. MSP trends to keep an eye on in 2021 include increased use of automation, AI, and cloud-based solutions. Failing to use MSPs could result in damaging risks like cybersecurity breaches, loss of data, and significant financial losses.
Therefore, it’s important to choose the right MSP that meets your exact business needs.