Managed services (MS) refers to the outsourcing of tasks remotely to a third-party company known as managed service providers (MSPs.) For instance, when an e-commerce business experiences growth, its IT infrastructure can become more complex to meet the demands, requiring additional expertise and workforce. By having managed services, businesses can leverage this solution to effectively handle their daily operations, saving valuable resources that can be allocated towards expanding the company. By the end of this article, you’ll understand how managed services work and what to consider when selecting an MSP to take your business to greater heights.
Managed services means that an external provider takes charge of providing and managing specific IT services for clients. These managed services are typically governed by a service-level agreement (SLA,) which outlines the engagement’s scope, performance expectations, and terms.
The concept of managed services emerged due to the growing dependence of businesses on IT infrastructure in the late 1990s. As a result, there was a need for specialized knowledge in managing and supporting these IT systems. Managed service providers (MSPs) filled that gap and continue to do so.
As a business owner, working with a managed service model allows you to delegate tasks and responsibilities to experienced professionals. By hiring an MSP, you can benefit from their specialized skills and resources, giving you peace of mind and allowing you to focus on other important aspects of your business, such as innovation. We will discuss the benefits of managed services in depth later in this article.
When providing managed services, the following is a typical set-up process.
The delivery of managed services can happen either remotely, on site, or using a combination of the two, depending on the nature of the services and the client’s requirements. Many routine maintenance and support tasks can be performed remotely, allowing MSPs to efficiently manage multiple clients’ systems from their own facilities. However, certain situations may require on-site visits, such as hardware installations or troubleshooting complex issues that cannot be resolved remotely.
There is no “one size fits all” solution in managed services. It means that there are different types of services available, and they can be customized to meet various needs related to IT infrastructure and operations. Some MSPs offer multiple of these types of services. Here are some common types of managed services available:
Here are a few examples of different industries that benefit from using managed services, based on their specific needs and requirements:
|Managed service||Industries that may benefit|
|Network management||Telecommunications, financial services, retail|
|Server and infrastructure management||Healthcare, education, manufacturing|
|Security management||Banking and finance, government, information technology|
|Cloud management||E-commerce, software development, media and entertainment|
|Application management||Healthcare, hospitality, logistics|
|Desktop and end-user support||Education, professional services, non-profit organizations|
|IT consulting and strategy||Real estate, construction, legal services|
A growing variety of services are being offered by MSPs, particularly when it comes to software-based solutions like business applications. One example is the platform-as-a-service (PaaS) model, which is a type of cloud computing that gives developers a platform and environment to create apps. For instance, think of apps like Airbnb or Pinterest. These apps rely on the PaaS model, which is important for making these technologies accessible to more people.
Here are the patterns and growth rates of the different types of managed services that MSPs sell to the market in 2022:
As depicted in the graph, growing businesses need to depend on various managed services to achieve success amidst market challenges and competition. In addition, cybersecurity has gained in importance, prompting companies to allocate additional resources to safeguard their operations.
Let’s now explore the ways in which managed services benefit businesses. The major benefit of MSPs is that they take care of your specialized technology applications’ day-to-day operations, allowing you and your team to concentrate on boosting revenue or sales. Let’s review some of the less obvious benefits of managed services.
Evidently, managed services offer businesses many benefits. Let’s now discuss specific use cases to determine if an MSP is something that you need for your business.
Managed services have a broad range of applications across diverse businesses, industries, and sectors. These services can be customized to meet the unique needs and requirements of your specific business, ensuring that the solution provided is tailored to enhance efficiency, security, and productivity. Let’s look at some common examples of use cases of managed services.
Small and medium-sized businesses (SMBs) can greatly benefit from managed services tailored to their specific needs. One key area where managed services can be advantageous is IT infrastructure management and support. SMBs often lack the in-house resources and expertise to manage their IT systems optimally, which can result in downtime and inefficiencies. By outsourcing IT infrastructure management to a managed services provider, SMBs can ensure reliable and efficient technology operations. The provider takes care of tasks such as server management, network monitoring, and software updates, allowing the SMB to focus on its core business activities.
Here are some examples of SMBs that can benefit from managed services:
The examples mentioned are just a few instances of the many small and medium-sized businesses (SMBs) that can benefit from using managed services. Services like IT infrastructure management, data backup and recovery, and help desk support are important for SMBs to operate more smoothly in competitive markets. Now, let’s explore another industry that can also benefit from these services: the healthcare industry.
The healthcare industry can greatly benefit from managed services that cater to its unique needs. These services provide crucial support in managing electronic health records, ensuring data security and compliance and maintaining the performance of medical devices and systems. Here are some key use cases of managed services in the healthcare industry:
There has been an increase of 26.6% in downloads of health applications and prescription apps in the United States in the first half of 2021. This surge in downloads is attributed to users seeking convenient ways to order repeat prescriptions through their mobile devices in the wake of the COVID-19 pandemic. When it comes to health apps, managed services play a vital role in providing advantages such as patient data protection, regulatory compliance, and improved healthcare system performance.
In the financial services industry, it is common for companies to face numerous cybersecurity threats. A security breach can result in significant losses not only for the company but also for the affected clients, as it can lead to financial theft and identity fraud. Making sure that the most up-to-date and powerful IT security measures are in place is a top priority.
Managed services come into picture to provide strong IT security to protect financial assets and personal information. Here are some key benefits of managed services in the financial services sector:
Online and mobile banking usage is projected to continue to rise. For example, 22 million individuals in Latin America will adopt online banking in 2024 alone, leading to a total user base of 196 million in the region—almost double that of 2020.
By leveraging managed services, financial service providers can focus on their core functions while relying on experts to manage their network security, compliance, and business continuity. This allows them to operate more efficiently, mitigate risks, and maintain the trust of their clients.
In the manufacturing sector, managed services play a crucial role in improving operations and maximizing production. Companies in this industry often rely on specialized technology systems and processes to meet production demands and maintain competitiveness. Let’s explore some of the specific benefits and use cases of managed services in the manufacturing sector:
Managed services providers offer expertise and support, allowing manufacturers to focus on their core strengths while relying on secure and dependable IT solutions that contribute to efficiency and competitiveness.
In the retail industry, managed services offer essential support to streamline operations and enhance customer satisfaction. Whether focused on maintaining a reliable and secure e-commerce platform, optimizing inventory management and supply chain, or providing efficient customer support, managed services play a crucial role in helping retailers thrive in today’s competitive market. Let’s explore some of the specific benefits and use cases of managed services in the retail industry:
Global retail e-commerce sales amounted to approximately 5.2 trillion USD in 2021, with expectations of significant growth in the coming years, reaching over 8 trillion USD by 2026. As retailers rely more on online platforms to connect with customers, managed services become crucial in maintaining a reliable and secure online presence. These services assist retailers in managing their e-commerce platforms, ensuring seamless transactions and safeguarding customer data.
A managed service provider (MSP) is a company that provides managed services to clients, overseeing and remotely managing the IT infrastructure or end-user systems of an organization. MSPs have expertise in offering IT solutions to businesses across different sizes and industries. They act as a trusted partner and take responsibility for managing and supporting their client’s IT infrastructure, systems, and operations.
Choosing the right managed service provider (MSP) is crucial for the success and efficiency of your business operations. With so many options available, it’s important to consider certain factors that will ensure you make an informed decision. In this section, we will explore what to keep in mind when choosing an MSP so you can confidently select an MSP that aligns with your business needs and goals. Here is a checklist to review when choosing an MSP:
By considering these important factors and conducting thorough research, you can make a well-informed decision when choosing a managed service provider (MSP) that will effectively meet your business needs and support your growth. When consulting with MSPs directly, ask plenty of questions and ensure that all details are clearly understood and agreed upon by both parties. Investing in technology services can be daunting and sometimes confusing, but as a business owner, it’s crucial to prioritize obtaining the best solutions for your business while also staying within your budget. In the next section, we will explore how Gcore’s managed services can assist you in growing your business.
At Gcore, we provide a wide range of managed services to cater to the unique requirements of businesses in different sectors. In this section, we will discuss our platform-as-a-service (PaaS) offering, which is a type of managed service specifically designed to offer developers a platform for creating and launching applications. With the use of PaaS, your business can depend on the service provider to handle the management and maintenance of the platform, allowing your developers to focus on creating and enhancing applications. Now, let’s explore the key features and benefits of Gcore’s platform-as-a-service (PaaS) offering.
Managed Kubernetes refers to a service that takes care of the management and operation of Kubernetes clusters. Kubernetes clusters are a collection of servers, also known as nodes, that work together to run applications in a coordinated and efficient manner. Each node in the cluster has its own resources, such as processing power and memory, which can be used to run different parts of your applications. Kubernetes manages these clusters by distributing the workload across the nodes, ensuring that applications run smoothly and can scale easily as needed. It takes care of tasks like deploying, updating, and monitoring applications, making it easier for businesses to manage their software in a reliable and scalable way.
At Gcore, we help you to deploy, manage and scale Kubernetes clusters with ease. Here are some of our service’s advantages that set us apart:
Learn more about the advantages of Gcore Managed Kubernetes.
Aside from Gcore Managed Kubernetes, we offer additional PaaS: Managed Logging for collecting and storing logs, function-as-a-service (FaaS) for running code as function without creating and maintaining virtual machines, and Cloud App Marketplace, that gives you access to ready-made systems and applied services.
Here’s a table showcasing some real-life use cases of Gcore platform-as-a-service (PaaS) in different industries.
|E-commerce||Building and managing online marketplaces|
|Healthcare||Developing telemedicine applications|
|Financial services||Building secure and scalable banking apps|
|Education||Creating online learning platforms|
|Entertainment||Developing media streaming applications|
|Manufacturing||Optimizing supply chain management systems|
|Retail||Building and managing e-commerce platforms|
|Travel and hospitality||Creating reservation and booking systems|
Additionally, we would like to present a cost comparison between maintaining your infrastructure on-premises, as infrastructure-as-a-service (IaaS,) and using Gcore’s Managed Services/PaaS.
We offer infrastructure cost savings, which means reducing your capital expenses and saving time on infrastructure design. By choosing Gcore as your managed service provider (MSP,) your business can effortlessly scale and prioritize product development while we streamline your business growth.
Managed services are when a business hires an outside company to manage and support their IT infrastructure. This allows the business to focus on what they do best, leaving the technical workloads to experts. The benefits of managed services include enhanced efficiency and security, reduced downtime, and financial savings. Choosing the right managed service provider is crucial as technology becomes more sophisticated and expensive.
At Gcore, our managed services such as Managed Kubernetes are designed to facilitate business growth. By trusting us with your IT infrastructure, your business can benefit from our expertise and resources so you can concentrate on your business primary goals and achieve sustainable growth.
If you have questions, reach out to our dedicated support team and we’ll be glad to assist.