MSPs: The benefits

By Andy Gibbs
Network World Technology Executive Newsletter, 08/27/01

Managed Service Providers have begun springing up in the market to offer remote monitoring and administration of computer systems while allowing customers the security and control of keeping their hardware at their own sites.

Such services are best suited for small and medium sized companies that don't have the trained IT staff required to support their IT infrastructure. Customers can choose quality of service levels that are appropriate to their needs - highly available service for a premium, or less expensive 'just good enough' service for non-critical situations.

E-businesses are also good candidates for managed services. Such businesses are often led by a team that is strong in business management but needs help with the technology implementation aspect of their business model. IT speed-to-market and cost are important considerations now that dot-coms are having to play by the same rules as everyone else. Also, e-businesses more often require 24x7 performance. This is where outside help can be a big relief. IT management is not the core competency for most of these businesses, but keeping the computing infrastructure at top performance is mission critical.

Skilled IT staff can be difficult to find and hire in today's market. Outsourcing some of the roles normally filled by on-site people can be a smart way to maintain business agility and avoid time-consuming searches for personnel with scarce skills. Your remaining on-site staff can spend their time on higher priority projects or specialized tasks that are best handled locally.

Some benefits of using an MSP could be a strategic advantage. For new companies, the IT department-in-a-can approach offers them the speed and flexibility of getting up and running faster than they had ever dreamed of. Forget looking to recruit an entire staff - MSPs offer their systems management skills on a monthly lease basis. IT expertise can be 'turned on' just like the other utilities.

Managed service providers most often remotely monitor and manage their customers' on-site network infrastructures over secure Internet connections. Network performance, systems administration and database administration all can be handled. Customers can maintain the security that goes along with physical control of the hardware, but avoid needing an entire staff to ensure daily production.

Some managed service providers also will host applications, blurring the lines between them and application service providers. Generally, MSPs approach the market with more of an enterprise systems management set of services than their ASP cousins that sell the offsite implementation of specific applications.

One of the cost benefits of using a managed service provider is getting the expertise required to run a variety of enterprise applications without needing full-time employees with those skills. Why pay for a whole database administrator when you only need 20% of him? Why not get the benefit of 24x7 network administration instead of just 8am-5pm? Outsourcing some of these roles can save money by allowing you to purchase only the amount of expertise needed, at less than the cost of permanent staff.

Managed service providers are able to add value because of the economies of scale that allow for the most efficient use of their highly skilled IT experts. From a central location, they can oversee, troubleshoot, and remotely service systems for a large number of customers that are scattered all over the Internet.

Managed services include the proactive discovery of trouble areas. Rather than just identifying a down server, continuous monitoring and troubleshooting by the remote specialists can give high service levels at reduced costs.

Managed services also can include application management. Your IT team may not have expertise in tweaking MS Exchange 2000 or Web servers, but chances are your managed service provider does.

As the managed services industry matures, the services provided are getting closer to a complete IT management solution. From the network infrastructure, to the applications, and eventually on down to the desktop, organizations will increasingly find value in turning to these vendors to make IT happen smoothly.

Andy Gibbs is a technology consultant with Currid & Company. You can reach him at Andy.Gibbs@currid.com