Managed services is the practice of transferring day-to-day related management responsibility of information technology as a strategic method for improved effective and efficient operations. The organization who owns the system being managed is referred to as the client or customer. The organization that accepts and provides the managed service is regarded as the Managed Service Provider (MSP).
When a company subscribes to a managed service, a MSP manages the network equipment and applications on the customer premises according to the terms of a service-level agreement (SLA). Some managed services are provided via cloud, meaning that the MSP provides services to company employees over the WAN. For small and medium-sized businesses (SMBs), managed services provide enterprise-class capabilities for a flat and predictable monthly fee—without requiring a large, initial capital investment. Companies that outsource enjoy high levels of network support and availability, enable internal IT staff to focus on strategic activities instead of network support, and pay additionally only for those projects they need.
Outsourcing network management to a MSP is more than a technology solution. By reducing costs and freeing up the IT staff to focus on the core business, managed services can play an important role in a company’s business strategy.
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