Why Next-Generation SMBs Choose
Managed IT Services

By: | Category: IT / Infrastructure

Throughout this series we’ve been looking at the habits of small and medium-sized (SMB) businesses and how they can unlock Next-Generation Technologies to unleash the power of their businesses and provide them with a definitive edge over their competitors. We’ve looked at next-generation ERP, next-generation CRM, and next-generation HR. Here, we wrap up the series by answering the question, Why Do Next-Generation SMBs Choose Managed IT Services?

1. An IT generalist can’t do it all

It used to be that SMBs had an “IT guy” or gal that could do it all. They ran cable, installed software updates, backed up the server, and helped Bob in the finance department replace his keyboard after he spilled his latte on it. Those days are gone. Technology has advanced at such a pace that no one person or even a small team can effectively support an SMBs IT infrastructure.

The Wall Street Journal recently argued that it’s time to get rid of the IT department entirely, asserting, “It made sense in a bygone era, when technology was separate from the business. Now it just hurts both.”

Next-generation SMBs recognize that it makes sense to engage a Managed Services Provider than continue to invest in an internal IT department. MSPs employ technology experts across every capacity, including cybersecurity, optimization, disaster and recovery planning, data security, artificial intelligence, machine learning, mobile app development, and data analytics to name just a few.

2. IT pros are hard impossible to find

More and more talented people are turning to tech as a career, but enterprises gobble them up before they even graduate college. The scarcity of tech talent certainly isn’t a new problem — this 2014 survey found that IT jobs are among the most difficult to fill — but pandemic and its economic fallout has certainly exacerbated it.

And even if you’re lucky enough to hire an IT pro, keeping them is another challenge. A 2021 survey of IT workers published by TalentLMS and Workable found that 72% said they are thinking of quitting their jobs in the next 12 months. It distills down to this — every IT professional who wants to work is already working — the tech field has azero-percent unemployment rate!

3. Security is a full-time job

Security is perhaps the primary reason why next-gen SMBs embrace Managed IT Services. We’ve covered this topic extensively in this blog, offering steps to improve data security, the importance of endpoint protection, network monitoring, email security, endpoint protection, multi-factor authentication, the impact a remote workforce has on cybersecurity, and more.

It is simply not feasible for an SMB to design, launch, monitor, and hone an adequate technology security initiative. MSPs make it their full-time job.

4. MSPs save them money

In almost all cases, Managed Service Providers can provide technology services cheaper than what it would cost an SMB to do itself, at a higher level of quality, and with more flexibility and scalability.By bypassing the need for additional staffing costs, enterprises that embrace MSPs have experienced a42% savingsin IT budget.

Along with the cost savings,Managed IT Services offer something that we’re all used to — a monthly service for a monthly fee. While different MSPs provide various services at different prices, the attraction for the executive team is clear. Fixed, predictable expenditures are easy to budget for and allow companies to perform more accurate long-range financial forecasts.

MSPs can also become strategic partners to the company, attending or hosting regular technology planning sessions to plan for events such as expansions and acquisitions that may require technology changes and additions, further adding to their value proposition.

5. Downtime is too costly

The Uptime Institute’s 2021 Global Data Center Survey revealed that services outages have become way more expensive. Over 60% of the respondents reported losing more than $100,000 to downtime. A 2021 report from Veeam puts the average hourly cost of downtime at a whopping $85K.

Through services like continual automated backups, redundant data centers, 24/7/365 monitoring, backup continuity and disaster recovery (BCDR) planning, regular software updates, and intrusion protection, MSPs make it their business to keep your business up and running. A majority of MSPs even offer an uptime guarantee in excess of 99%.
Reliance on an MSP cannot eliminate the possibility for downtime — but almost.A2021 report from MarketsAndMarketsfound that Managed IT infrastructure services can reduce server and network downtime by more than 85%.

Next-generation SMBs choose MSPs

Next-gen SMBs recognize where to put their resources. They understand that ultimately the back-room server will vanish (if it hasn’t already) and all their business applications will run in the cloud. As a result, they are redirecting the money they used to spend employing IT staff to engage Managed Services Providers who can do more, more reliably, and at a lower cost. Rather than looking for the elusive “IT person,” companies are creating new positions for Data Analysts, Chief Data Officers, and even Cloud Vendor Liaisons. In other words, next-gen companies are outsourcing the mechanics of their technology and focusing instead on reaping its benefits.

They see it as an essential part of their digital transformation, to ensure that their businesses don’t get left behind as technology developments continue to accelerate. They see it as a way to future-proof their operations. New technology advances are now almost entirely centered around cloud technologies, including SaaS, PaaS, IaaS, IoT, AI, ML — technologies that MSPs live and breathe. Companies who’ve tied their fortunes to the cloud will be those that can cash in on the benefits of these technologies right from the start.