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Get a DemoShould You Use IT Managed Services? Evolution, Pricing Models and Pros/Cons
August 9, 2024
Last Updated:
August 26, 2024
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What Are IT Managed Services?
IT managed services involve organizations delegating their IT operations to a third-party organization, known as a managed service provider (MSP). This provider is responsible for maintaining and continuously improving IT systems in the organization, responding to user needs, and aiming to improve operations and reduce risks.
The scope of services can vary widely but typically includes network, application, infrastructure and security services via ongoing and regular support and active administration on customers’ premises, in their MSP’s data center (hosting), or in a third-party data center.
History and Evolution of Managed IT Services
The concept of managed IT services has evolved significantly over the past few decades. Initially, organizations relied heavily on internal IT teams or ad-hoc external support for their technology needs. However, as technology became more integral to business operations, the demand for more proactive and comprehensive IT management solutions grew.
In the early 2000s, the break/fix model was prevalent. Companies would call IT professionals when something broke down. This reactive approach often led to extended downtime and unpredictable expenses. As technology advanced, the limitations of this model became apparents.
The rise of managed service providers (MSPs) marked a significant shift. These providers offered continuous monitoring and maintenance of IT systems. With the emergence of cloud computing, MSPs expanded their offerings to include cloud services, enhancing flexibility and scalability.
Today, managed IT services include a wide range of offerings, from network and infrastructure management to cybersecurity and compliance. The focus has shifted towards providing comprehensive, end-to-end solutions that align with business goals.
How Are Managed IT Services Priced?
Managed IT services can be priced based on various models, each offering different levels of service and flexibility:
- Flat-rate pricing: In this model, organizations pay a fixed monthly fee for a defined set of services. This approach provides predictable costs, making budgeting easier. It often includes essential services like network monitoring, help desk support, and regular maintenance.
- Tiered pricing: MSPs offer different service tiers, each with varying levels of support and features. Organizations can choose a tier that aligns with their needs and budget. Higher tiers may include advanced services like cybersecurity management and strategic consulting.
- Per-device/per-user pricing: Charges are based on the number of devices or users being supported. This model is scalable, making it suitable for organizations of all sizes. It allows for easy adjustments as the business grows or downsizes.
- On-demand pricing: Organizations select individual services from a menu of options, paying only for what they use. This model offers flexibility but may lead to higher costs if multiple services are required.
Value-based pricing: Pricing is determined by the value provided to the client, such as improved uptime or enhanced security. This model aligns costs with business outcomes, incentivizing MSPs to deliver high-quality services.
Tips From the Expert
In my experience, here are tips that can help you better leverage IT managed services:
- Establish proactive risk management frameworks
Work with your MSP to implement risk management frameworks that include regular risk assessments, threat modeling, and proactive security posture management to identify and mitigate potential vulnerabilities before they are exploited. - Implement role-based access control (RBAC) within MSP management
Enforce RBAC to limit access within the MSP’s management console. Only authorized personnel should have access to critical systems, reducing the risk of internal threats or accidental misconfigurations. - Schedule regular security posture reviews
Conduct quarterly or biannual reviews of your security posture with your MSP. These sessions should include updates on emerging threats, assessment of current defenses, and strategic adjustments to your security measures. - Create a clear escalation matrix for critical incidents
Develop an escalation matrix that defines the chain of command and response procedures for critical incidents. Ensure the MSP has a clear understanding of who to contact and what actions to take during emergencies. - Leverage AI and automation for enhanced operational efficiency
Work with your MSP to integrate AI and automation tools for routine tasks, such as patch management, system monitoring, and threat detection. This reduces manual intervention, speeds up response times, and enhances overall IT efficiency.
Key Types of Managed IT Services
Managed service providers offer many types of IT services. Here are some notable examples.
Network Monitoring and Management
Network monitoring and management involves the continuous monitoring and administration of a company’s network infrastructure. MSPs identify and resolve faults, ensure network performance and optimize it to meet business needs. This is important for minimizing downtime and maintaining business continuity.
This service usually includes patch management, system backups, and real-time alerts that help in preempting potential network issues before they become serious threats.
Cybersecurity Services
Cybersecurity services provided by MSPs focus on protecting organizations from data breaches, cyberattacks, and other security threats. This includes the implementation of security measures like firewalls, anti-virus software, intrusion detection systems, and endpoint protection systems.
These services also involve regular security audits, incident response, and compliance assistance, helping organizations align their security measures with international standards and best practices.
IT Infrastructure Management
MSPs can manage IT infrastructure, overseeing all physical and virtualized components of an organization’s technology framework. This includes data center management, network setup and operation, and computing resources.
The aim is to ensure all pieces of infrastructure are effectively integrated, managed, and maintained to support business operations and enable optimization of processes.
Cloud Services
Cloud services from managed IT service providers revolve around the deployment, management, and support of cloud-based applications and infrastructure. Providers offer solutions such as public, private, or hybrid cloud environments, depending on a company’s needs and security considerations.
They also ensure cloud resources are efficiently used, secured properly, and onboarded smoothly, providing scale and flexibility in business operations.
Help Desk and Technical Support
Help desk and technical support services aid in ensuring that users receive timely assistance for their technological issues. Managed IT services extend their expertise to offer 24/7 help desks where users can expect quick responses to queries and resolutions of problems.
This support can range from simple password resets to complex server troubleshooting, depending on the level of support agreed upon with the MSP.
Managed Endpoint Security
Managed endpoint security involves securing and managing each endpoint, or user device, accessing the corporate network. This includes ensuring all endpoints meet security standards to avoid vulnerabilities that could be exploited by cyber threats.
MSPs manage software installations, updates, and policy configurations across all user devices, reducing the risk of data leaks or attacks on company networks.
Related content: Read our guide to managed service provider software
What Are the Benefits of Managed IT Services?
There are several reasons for organizations to outsource their IT management to an MSP.
Contractual Terms and Predictable Spending
Managed IT services are governed by contractual terms that outline the scope of services, ensuring clarity and mutual understanding between the provider and client. This arrangement helps organizations plan their IT budgets with better accuracy as costs are predictable due to fixed monthly fees under these contracts.
Expertise and Experience
Through managed IT services, organizations gain access to high levels of expertise and experience without the need for in-house hiring. MSPs typically employ specialists with a wide range of skills and certifications, ensuring coverage of all technical needs. This access to expert resources allows companies to handle complex projects and solve issues more efficiently.
Data Compliance and Security
MSPs help organizations navigate complex regulatory environments by ensuring that their IT practices meet industry standards and legal requirements. They implement stringent security measures, including encryption, access controls, and regular security audits, to protect sensitive data. They also stay updated on evolving regulations, such as GDPR, HIPAA, and CCPA, and help organizations adapt to new compliance requirements.
Better Uptime Management and Incident Response
MSPs use advanced monitoring tools to track system performance in real-time, identifying and addressing potential issues before they cause disruptions. Proactive maintenance, including regular software updates and hardware checks, ensures that systems run smoothly. In the event of a problem, MSPs provide rapid incident response and resolution, minimizing downtime.
Challenges Faced When Using Managed IT Services
Relying on managed IT services can also have some potential drawbacks.
Lack of Provider Accountability
Since MSPs operate externally, there may be issues related to transparency, performance tracking, and service delivery quality. Organizations might experience difficulties in verifying and ensuring that the MSP adheres to agreed-upon service levels.
Size Constraints
Another challenge is the size limitations of the MSP itself. Smaller MSPs may struggle to provide the breadth and depth of services required by larger enterprises. They might lack the resources, specialized expertise, or infrastructure to handle complex and large-scale IT environments. This can result in slower response times, inadequate support, and scalability issues as the company grows.
Lack of On-Site Engineer Availability
With managed IT service models, the MSP usually operates remotely. This can be a significant drawback when physical intervention is required, such as hardware installations, repairs, or troubleshooting network issues. The absence of on-site support can lead to longer resolution times for issues that cannot be addressed remotely, impacting business operations.
How to Choose Managed IT Services
Before committing to a managed service provider, it’s important to thoroughly evaluate their offerings. Key considerations include:
- Service Level Agreements (SLAs): Ensure SLAs are clear and comprehensive, detailing the scope of services, performance metrics, and penalties for non-compliance to hold the MSP accountable.
- Expertise and certifications: Evaluate the MSP’s technical expertise and certifications to confirm they possess the necessary skills to manage your specific IT needs effectively.
- Scalability: Assess the MSP’s capability to scale services in line with your business growth, ensuring they can handle increased demand without compromising quality.
- Security measures: Verify the MSP’s security protocols, including data encryption, access controls, and compliance with relevant regulations to safeguard sensitive information.
- Response time: Investigate the MSP’s average response and resolution times to ensure they can provide timely support, minimizing potential downtime and disruptions.
- Customization and flexibility: Look for MSPs that offer customizable service packages tailored to your business requirements rather than a one-size-fits-all approach.
- Customer support: Consider the quality and availability of customer support, including 24/7 help desks and on-site support options to address urgent issues promptly.
Track record and references: Research the MSP’s reputation, seeking client testimonials and case studies to gauge their reliability and performance in similar business environments.
Cynet: The Ultimate Cybersecurity Platform for MSPs
Cynet is a comprehensive cybersecurity platform for service providers. It streamlines cybersecurity by combining multiple critical security functionalities into a single, multitenant platform. This integration enables Cynet to offer endpoint, user, network, and SaaS security features that would typically require multiple products to achieve.
The platform features advanced capabilities such as Next-Generation Antivirus (NGAV), Endpoint Detection and Response (EDR), User Behavior Analytics (UBA), network analytics, deception technology, and Software-as-a-Service (SaaS) Security Posture Management (SSPM). These tools work together to detect and eliminate hidden threats. Cynet’s platform also includes automated incident resolution capabilities. It utilizes customizable playbooks and a range of remediation actions, enabling threats to be automatically resolved without manual intervention.
Additionally, Cynet supports its platform with the CyOps Managed Detection and Response (MDR) team. This team provides 24/7 monitoring of customer environments to quickly address any suspicious activity and respond to inquiries from both service providers and their clients. The multitenant nature of the platform makes it especially suitable for Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs), making it easy to manage services across multiple clients.
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