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Managed Services Myths

TOP 10 MYTHS ABOUT MANAGED SERVICES

As an increasing number of solution providers try to get into managed services, there are still many myths floating through the channel adding to the confusion for customers.

The following are the top 10 myths:

  1. Managed Services are new. Actually, the managed service model has been around for over 15 years. You should just avoid providers who don't have more that 10 years experience providing managed services.
  2. Managed Services are expensive. Versus one or more IT staff the cost should be less when considering taxes and benefits alone.
  3. By the hour costs less. Like gambling in Vegas, a break-fix mode may have stretches of little or no cost followed by a roller coaster of downtime and unexpected significant cash outlay in short periods.
  4. Only an employee can understand. Most systems have common components and a provider has a breadth of like customer environments across several personnel over the limited exposure of a single employee and site.
  5. Someone must be on site all the time. With remote tools, response is fast and may be provided by multiple personnel versus an individual employee that may be occupied.
  6. Software is not an asset. It is the customer's responsibility to keep software in a locked cabinet.
  7. Buy it anywhere. It may have been a good deal, but that consumer product bought at a retail store is going to cost you much more in the long run.
  8. Managed Services are all or nothing. Many customers may choose to have a hybrid of IT and managed services for best function and lower cost.
  9. Managed Services is a model to sell more stuff. While some in the industry have taken this misguided approach adding to the confusion, managed services are actually based upon saving cost for provider and customer with no motivation to sell product or bill by the hour.
  10. Management can forget about IT. In business, you can never fall asleep at the wheel and upper management should be educated on IT business aspects and regularly informed of ongoing operations.