IT service providers deliver the technical expertise small businesses need at a much lower cost than hiring dedicated IT staff. They can recommend, install, and manage technology according to business’ objectives and core competencies and ensure that critical data is safe. That’s why nearly 70% small to medium sized businesses (SMBs) work with an IT service provider for some or all of their IT needs.
There are many considerations for SMBs thinking about moving their IT to another company. In this article, we’ve summed up the key factors to help you decide what’s best for your company. Let’s get started!
What's an MSP?
MSPs are the guardians of IT, delivering ongoing monitoring and management of client applications (email, web site, security, etc.) and IT infrastructure.
An MSP, or managed service provider, is an IT service professional to which SMBs outsource their IT needs.
MSPs are the guardians of IT, delivering ongoing monitoring and management of client applications (email, web site, security, etc.) and IT infrastructure remotely. This is typically accomplished through remote monitoring services, which allows them to keep tabs on the health of their clients’ IT environments, change and update systems, and troubleshoot problems. MSPs closely monitor a wide variety of IT solutions a business has implemented, including web apps, desktop and server management software, backup and disaster recovery, storage management tools and security software.
Small businesses outsource IT to ensure all their business systems, operations and networks remain up and running. Managed service providers take a proactive approach to IT. Rather than waiting for something to break or shut down, MSPs ensure a customer’s IT can avoid most tech issues in the first place. This is huge, because IT related downtime can have a devastating impact on revenue and reputation—especially for smaller businesses trying to grow.
SMB Managed Service Consumption
A survey by B2B research firm Clutch showed that 69% of SMBs use at least one IT service provider, regardless of company size. 63% of respondents indicated they also have dedicated, in-house IT staff. However, this percentage was much lower among SMBs with 10 or fewer employees—only 31% of that group have in-house IT staff.
What do MSPs provide?
MSPs typically deliver services on a subscription basis; companies pay a fixed amount, usually monthly, for a specific set of IT services. Some common examples include, but are not limited to:
- Application monitoring/management
- Backup and Disaster Recovery
These services are typically offered either as packaged services, or a la carte, depending on the needs of the SMB. They are also often priced at a fraction of the cost of a full time IT resource. MSPs work with a variety of technology vendors in order to deliver these services. However, it’s not just about the technology. Rather, the expertise of the service provider holds the most value for SMBs.
Why SMB’s Adopt Managed Services
All or some IT tasks to a managed service allows businesses to focus on their core competencies.
Moving all or some IT tasks to a managed service allows businesses to focus on their core competencies instead of day-to-day IT management. This is especially important for SMBs, since they are frequently stretched thin from a personnel and budget standpoint. Obviously, the specific reasons SMBs adopt managed services depend on the unique needs of the organization. For example, the IT needs of a five person company with no in-house IT will be quite different from those of a 100 person company with a dedicated IT team. However, generally speaking, businesses adopt managed services to improve upon all or some aspect of their IT strategy or infrastructure. How this occurs will largely depend on the in-house IT expertise of a given business.
According to IT industry trade association CompTIA, the top reason SMBs adopt managed services today is to “improve efficiency/reliability of IT operations” (51%). But, context is important. For a very small business, “improve efficiency/ reliability of IT operations” might mean implementing and managing the IT infrastructure. At the other end of the spectrum, it might mean outsourcing some routine tasks so in-house staff can focus on higher-level technical challenges. And, 31% of respondents said that they opted to work with a service provider to “free IT staff to work on strategic projects.” MSPs can provide different levels of support to meet the technology requirements of different businesses.
According to Kaseya’s 2018 MSP Benchmark Survey Results, 24% of respondents pay under £1,000 a month for managed services (£12,000 per year) - a fraction of the yearly salary of an IT professional. An additional 28% said they pay between £1,001 and £2,500.
Many businesses choose to work with IT providers because they have expertise in a specific area of IT. For example, 38% of respondents in CompTIA’s survey said that they adopted managed services for “enhanced security/compliance.” This is likely due to the fact that ransomware attacks and security breaches are constantly in the news, but it highlights the fact that MSPs have deep technical knowledge in specific disciplines of IT. Also, the ongoing monitoring and software management MSPs provide is particularly important, because keeping software patched and up to date is essential to protect against security breaches
Also, working with an IT provider allows businesses to offload tasks that are difficult and/or time consuming. That’s one of the reasons that managed data protection services are so popular today. Protecting company data through backup and restore has long been a pain point for companies of all sizes; MSPs can ensure the SMB company data is fully protected from malicious or inadvertent actions, reducing business risk by putting complex tasks in the hands of experts.