Why are busi­nesses shift­ing to man­aged ser­vices for IT Needs?

Kuwait Times - - TECHNOLOGY - By Yasser Zeineldin

Look around any in­dus­try to­day and we see a huge change in the way they run their busi­ness. From large en­ter­prises, to gov­ern­ments, to small and medium busi­nesses, or­ga­ni­za­tions are mov­ing deeper into the digital era where tech­nol­ogy is mak­ing an im­pact on the way they are chang­ing their pro­cesses and sys­tems for growth and ex­pan­sion.

While a num­ber of com­pa­nies are mak­ing large in­vest­ments in IT in­fras­truc­ture and up­grades, most of them are faced with the chal­lenges of evolv­ing tech­nol­ogy, the need for highly skilled pro­fes­sion­als, etc. Si­mul­ta­ne­ously, they are also aware that man­ag­ing and main­tain­ing their IT in­fras­truc­ture needs to be given pri­or­ity, and, with the lack of know-how and skilled per­son­nel, the trend is now mov­ing to­wards out­sourc­ing these IT re­quire­ments to Man­aged Ser­vice Providers (MSPs).

Key driv­ers for in­creased adop­tion of Man­aged Ser­vices In­creas­ing use of cloud based so­lu­tions

Ac­cord­ing to the Cisco Global Cloud In­dex, from 2014 to 2019, the Mid­dle East and Africa is ex­pected to have the high­est cloud traf­fic growth rate (41-per­cent CAGR). Cloud based so­lu­tions help busi­ness sup­port their growth, and they are mov­ing their busi­ness ap­pli­ca­tions to the cloud to en­sure greater agility and flex­i­bil­ity. MSPs help or­ga­ni­za­tions scale down the bur­den of em­ploy­ing spe­cial­ized teams for IT man­age­ment, pro­vide the com­plex com­pli­ance re­quire­ments and sup­port the or­ga­ni­za­tion with the most suit­able tech­nolo­gies that can ei­ther be taken as a whole or avail of smaller com­po­nents.

Skills gap

Re­gard­less of the size of an or­ga­ni­za­tion, it is a huge chal­lenge to hire and main­tain skilled em­ploy­ees across var­i­ous do­mains. On the other hand, most MSPs are equipped with well trained staff and their ex­per­tise pro­vides strong ca­pa­bil­i­ties to un­der­stand the cus­tomers busi­ness needs. More­over, a much larger pool of pro­fes­sion­als is avail­able to pro­vide strate­gic guid­ance for main­tain­ing the IT sys­tems and pro­pose timely up­grades for bet­ter per­for­mance.

Grow­ing se­cu­rity threats

While emerg­ing tech­nol­ogy up­take pro­vides a com­pet­i­tive edge to busi­nesses and or­ga­ni­za­tions, they are faced with a grow­ing num­ber of cy­ber threats. In­house IT teams are fo­cused on the daily needs of the en­ter­prise and more of­ten lack the time to look into com­plex se­cu­rity needs. Spe­cial­ized Man­aged Se­cu­rity Ser­vices Providers or MSPs can pro­vide the crit­i­cal 24/7 ser­vice and de­ploy lat­est se­cu­rity needs in a highly proac­tive man­ner. Si­mul­ta­ne­ously, the global part­ner­ships that MSPs have helps them lever­age the lat­est tech­nolo­gies and global ex­pe­ri­ence in a cost ef­fec­tive man­ner.

Data stor­age and Backup

Data is one of the most crit­i­cal as­pects of any or­ga­ni­za­tion and it is im­por­tant that it is pro­tected, stored and backed up against any un­fore­seen fail­ures or nat­u­ral calami­ties. The risk of los­ing data can be fa­tal to busi­nesses. MSPs are equipped to de­liver these ser­vices as well as ca­pa­ble of re­cov­er­ing lost data with ser­vices such as data du­pli­ca­tion across dif­fer­ent medi­ums and lo­ca­tions. They can en­sure con­tin­u­ous avail­abil­ity of data which is vi­tal for the day to day busi­ness op­er­a­tions.

Cost re­duc­tion

There are mul­ti­ple ar­eas where cost re­duc­tion is very ap­par­ent in us­ing MSPs. One of the biggest ad­van­tages is the OPEX model which does not call for high cap­i­tal in­vest­ments. Many MSPs also of­fer a Pay-as-you-go op­tion which makes a sig­nif­i­cant im­pact by pay­ing only for the ser­vices used. The choice to scale the ser­vices de­pend­ing on the busi­ness needs also plays a huge role in on­go­ing IT cost re­duc­tion. Bud­gets for em­ployee re­cruit­ment for IT man­age­ment are low­ered with tech­ni­cal sup­port staff now com­ing in as a part of the MSPs de­liv­er­ables. MSPs are aligned with global tech­nol­ogy part­ners who are able to pro­vide ad­vanced tech­nol­ogy to en­sure busi­ness growth and pro­vide greater cus­tomer ex­pe­ri­ences.

Ac­cord­ing to a Frost & Sul­li­van re­port, the GCC is ex­pected to see a strong growth for MSPs with spends ris­ing from $1.07bn in 2012 to $11bn by 2018. While the ini­tial up­take was mainly by the large en­ter­prise sec­tor, it is ex­pected that the small and medium busi­nesses are show­ing strong in­ter­est in Cloud-based in­fras­truc­ture ser­vices and will con­trib­ute to the growth of regional MSPs.—Yasser Zeineldin is CEO, eHost­ing DataFort.

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