Benefits of Managed Service

What Are Managed Services?

When a company subscribes to a managed service, a service provider manages the network equipment and applications on the customer premises according to the terms of a service-level agreement (SLA) established to meet the company’s unique business needs. Some managed services are also hosted, importance that the service provider hosts the equipment in its facility instead of the customer’s, and delivers services to company employees over the WAN.

For small and medium-sized businesses (SMBs), managed services provide enterprise-class capabilities for a predictable monthly fee—without requiring a large, initial hub investment. Companies that out-task delight in high levels of network support and availability, enable internal IT staff to focus on strategic activities instead of network support, and pay only for those networking services that they need.

Managed services generally include software, hardware, and other IP networking services. The service provider’s highly experienced technical experts focus exclusively on providing the network services and support that their customers need to meet their business requirements. Companies have the option to out-task some or all of their network management and monitoring tasks and retain control of the rest—even if the equipment is physically located at the provider’s site. For more information on various arrangement scenarios contact us at NSP NOC for a free consultation

Reasons for Adopting Managed Services

In October 2006, market analyst Ovum Ltd conducted a survey to identify the major reasons that companies adopt managed services. The primary reason for managed services adoption is cost reduction. The next most highly rated reasons are higher levels of support and availability, predictable costs, and access to the latest technology (Figure 3).

What do Managed Services Solve?

Managed services are an innovative and cost-efficient alternative to managing the network with internal resources (Figure 6). They enable a company’s personnel and financial resources to focus on core business concerns and allow the company to pay for only those services it requires. This arrangement frees the company from having to hire staff with expertise in multiple networking technologies and invest in ongoing training.

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