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Here’s an honest truth: managed IT services cost money. With any business expenditure, it’s a good idea to understand the value that the expenditure will bring to the organization. We believe businesses can improve on many fronts by implementing managed IT services. One of the biggest areas of benefit is financial. Here are 6 ways that implementing managed IT services helps your bottom line.
Equipment downtime can be a huge detriment in any business setting. In the “break it fix it” model, businesses operate normally until something breaks, then work stops. If it’s IT equipment, the in-house IT team descends and attempts to fix. If, after some amount of time has passed, IT decides the problem is beyond them, they call in outside help. Then they wait. And wait. And wait some more. Work isn’t getting done while that piece of equipment is down. Waiting for an outside specialist can cost your company in a big way.
With managed IT, your managed service provider (MSP) is the outside specialist. As soon as something goes down, the MSP is on it, bringing their skills and specialties to bear on the problem. Use managed IT to get your business back up and running faster than the traditional model can.
Stabilize Monthly Spending
With the “break it fix it” model, your IT spend can spike wildly from time to time. When a high-value piece of your IT infrastructure goes down or even just needs replacing due to age, your costs soar. Companies self-managing their IT services also face sudden spikes in software upgrade costs.
Managed IT can stabilize your monthly IT spend. In this model, you pay a stable monthly rate for service regardless of how much or how little help you need in a given month. Software upgrades (or, more likely, subscription and licenses) are rolled into this monthly fee as well, removing those software spikes from your budget. Your finance team will appreciate this predictable expense.
Lower Your Initial Investment
Along the same lines, you can lower your initial IT infrastructure investment through managed IT. Depending on the terms of your agreement, some amount of your equipment may be owned by the MSP. The less equipment you have to purchase yourself, the lower your initial IT infrastructure investment.
Every MSP agreement is different, customized to the needs of the client business. If up-front costs are an obstacle for your business, be sure to craft a service agreement that lowers these costs.
Lower Overall IT Infrastructure Costs
Even if your MSP isn’t providing all your hardware as part of your plan, you’ll still lower your overall IT infrastructure costs in many MSP arrangements. For example, if hosting, storage, and backup are part of your MSP agreement, you eliminate some of your need for on-site servers. You’ll save money on hardware, power, and even real estate — since you won’t need space to house those servers.
The same principle applies to a number of other functions, including network monitoring and security. You won’t need to devote systems and system resources to functions that you offload to a managed IT provider.
Free Your IT Staff
Partnering with a managed IT services firm frees your IT staff to do what matters most. Contrary to what many assume, the goal of implementing managed IT isn’t necessarily reducing staffing levels. Sure, some larger businesses may benefit from reducing a bloated, inefficient in-house team, but the real value in managed IT service is freeing up your in-house team.
Your existing IT staff adds value to your company by wholeheartedly pursuing whatever high-value IT interests your business has—or, at least, it should. Many times, though, IT employees are too busy troubleshooting PCs and malfunctioning equipment to focus on the IT elements that are truly core to your business. Enlist a good MSP to handle the day-to-day IT troubles (among other things), and you’ll enable your IT staff to focus in and add value in the areas that are truly critical to your business.
Scale Your Business
It’s great to be a part of a growing business, but the growing pains are real. Scaling your business can cause IT headaches: new equipment is needed for each new employee, not to mention all the behind-the-scenes tech infrastructure, like server space, bandwidth, and software licensing.
Managed IT is the solution here, too. Your MSP has far more capacity than you need, so they can handle scaling issues during periods of growth or reduction.
By now it’s clear: that managed IT can help your bottom line. If you’re ready to begin the conversation about how we can help you, contact us today.