Managed services simplify IT operations and reduce investment by delivering systems and applications as an externally administered service. They provide organizations with predictable monthly costs, access to best-of-breed IT and the latest applications - all without the costly and pain-staking need to overhaul IT systems regularly. Managed services also provide remote monitoring services, allowing your IT personnel to focus on strategic issues.
| Motivation | Reason |
| Lower costs | Managed services are one of the most effective methods for companies to reduce IT costs while gaining access to innovative network technologies that can confer a competitive advantage. The service provider manages and administers the network equipment and applications, reducing hardware and operational costs. |
| Lower risk | Managed services also eliminate the risk that the company will need to make a large capital expenditure to accommodate unplanned business changes, such as increased bandwidth or performance requirements. |
| Higher levels of support and availability | Managed services include professional support and SLAs for availability as well as performance. |
| Predictable costs | Managed services costs always remain at the level specified in the contract so that the IT budget becomes stable and predictable. |
| Access to the latest technology | The network is the service provider’s business. Therefore, providers can justify the ongoing investment in advanced network technologies and expertise to remain at the vanguard and companies that subscribe to managed services gain access to the latest technology for security and availability, up-to-date services, and the newest standards. |
| Access to an enhanced skills base | The service provider maintains a staff of specialists whose skills benefit the companies that subscribe to the managed service. Technical innovations and solutions are implemented quickly and at a reasonable cost, and the company is not required to continually expand its own IT staff. |
| Adaptability to changing business conditions | The service provider can expand or reduce the breadth and depth of managed services based on a company’s business needs. This flexibility enables companies to avoid the high capital expenditures and operating expenses associated with maintaining a network and keeping it up-to-date. |
| Ability to focus on the core business | Service providers dedicate themselves entirely to customer requirements, thus freeing the company’s IT staff to concentrate on its core business. |
| Capital expenditure reduction | Managed services usually cover most networking requirements, largely eliminating all capital expenditures other than those for the LAN itself. Companies can eliminate even this capital expenditures by subscribing to managed hardware services. |
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