According to CompTIA 5th Annual Trends in Managed Services report, "the global managed-services market is predicted to grow to $193B by 2019." What is fueling this impressive level of adoption of outsourced IT amongst SMBs? Here are the top five reasons summarized from the report.
Enhanced Cyber Security Protection
The headlines are full of high-profile data breaches or data loss incidents, and SMBs are struggling to keep up with what exactly they should do to protect themselves. Industry compliance is also a big concern, as regulations are tightening up when it comes to protecting private data - and not just for healthcare and financial institutions, but for public companies across the board.
Everyone knows the high costs of downtime, and the fall out from the Equifax breach (lawsuits, fines, denial of insurance coverage) is fresh in everyone's mind. Small business tech support (e.g. in-house IT) is particularly stressed with trying to stay on top of these growing cyber security threats, and are looking to MSPs (Managed Service Providers) to take on the responsibility.
Proactive Approach to IT Security
SMBs have enough on their plates without having to worry about daily IT operations. When they come in to work each morning, they want everything up and running - which means somebody has to be providing 24x7x365 coverage. Having an MSP take on this responsibility means that most problems are solved before the client even knows they had one.
Who's checking to see that the lastest security patches were installed? Are those backups even working? Why is the Wi-Fi so darn slow again? The list goes on, but the bottom line is proactive IT services and support can actually make the business far more efficient, and of course far more secure.
Maximizing Business Uptime
The cost of downtime, whether from cyber attacks or other emergencies such as power failures, floods and other natural disasters, is prohibitive. Nobody can afford to be down for days, whether from bad weather or malicious hackers.
SMBs are looking for strategies that can help them run their business from anywhere, should the need arise.
By leveraging outsourced IT, they can focus on their core business operations while the IT service provider figures out the best strategy to keep the business infrastructure secure and systems accessible, should the worst occur.
Access to Newer Security Technologies
Even if the SMB has internal IT staff, they often become over-burdened with day-to-day maintenance, and may lack the skills and training for specific tasks.
IT outsourcing can provide a deep bench of IT expertise, plus ongoing support with the latest technologies that the SMB may not have access to, such as remote monitoring and management, backup and disaster recovery and other new cyber security technologies.
Having access to the latest solutions, often too expensive for an SMB to have in-house, is a huge benefit when it comes to maintaining security, uptime and profitability.
Cost Savings Associated with Outsourced IT Security
One of the biggest business values of managed IT services is greater cost savings. IT budgets consist of hardware costs, software and network infrastructure costs, maintenance costs and of course staff, which all varies from quarter to quarter.
With the managed IT services model, customers can more easily predict their monthly IT costs while benefiting from economies of scale.
An even bigger value comes to play with the strategic guidance that the IT provider can offer, often showing customers how to grow their business with the right combination of technologies that can be more cost-effective than the older solutions they have in place.
In summary, from the desire to reduce costs to the need for an outside party to provide top-notch IT security, uptime and general peace of mind, it's not hard to see why the IT managed services market is set to take off!