Are managed IT services worth the cost?
You’ve undoubtedly heard the term IT managed services. You may know that they sound pretty good, but do their costs really stack up? Under a true managed IT services offering, you pay a fixed price per user every month for all your IT support. Cost is only one-half of the IT managed service coin.
These managed services costs may seem expensive at first, but they are a fraction of the cost of having to replace your IT systems regularly. The long-term benefits of a reliable IT environment can also be hard to quantify – but will reveal themselves as your managed IT services get used every day by you and your team. One benefit is a known monthly fee – this allows you to budget easily.
Here we break down how to decide if managed IT services are right for your business and, if they are, how to prepare to get on board with minimal fuss and interruption.
Find out how much your ad hoc (time and materials) IT support has cost your business. Once you know where to look, it’s simple to uncover the hidden costs in your break-fix IT services. Knowing these IT costs helps put the cost of managed IT services into perspective.
Here’s how to calculate the actual cost of your ad hoc IT:
Total your IT expenditure for the past year
Add up all your IT expenses for the year. You might be surprised to find that they equal a significantly higher number. If that’s the case, managed IT services might be a better deal for you. Instead of paying a monthly price for IT support when you need it, you can pay a flat monthly fee and receive proactive support and infrastructure monitoring.
Put a dollar figure against IT issues
Look over all of your IT support invoices from the past year, and create a spreadsheet detailing each problem. Ask yourself how much you spent on staff time or lost productivity due to these support issues. Think about the productivity you lost in the lead-up to and during the problems.
You wait for hours to resolve a problem, only to find out it’s going to cost more when you finally get the IT support you’ve been waiting for. Time and material arrangements are typically longer resolution times because the item is being worked on once it becomes a problem rather than proactively. The longer a T&M ticket is open and worked on, the more likely it will end up costing you more money because there is no dedicated time for this job. While resolving your issue is still the goal, efficiency isn’t guaranteed.
Calculate the risk of a catastrophic technology failure or cyber-security breach
While these unexpected IT events are rare, they are becoming more common. It is worthwhile to understand how any IT security breach, security hole, or cyber-attack may affect your business operations. Working with your IT professionals to help you identify the risks your current IT systems may be vulnerable to, and the likelihood of them occurring is the first step to minimizing the exposure you have to cyber-attacks.
- In a world where data breaches, cyber-attacks and system shutdowns are all too common, is your business equipped with the proper cyber-insurance policies to ensure that you can get back up and running quickly?
- Do you have reliable, and restorable backups should your data get encrypted with a crypto-locker type ransomware attack?
- Are you able to make use of on-site employees or employees working from home who can continue working even if your office server is down?
- How much would it cost your business if you were shut down for a week, a month or longer?
Once you’ve calculated your IT expenses, you’ll have a better understanding of the total cost of your IT support and its impact on your business expenses. In contrast to traditional IT support, managed IT services provide a proactive approach to solving IT problems. Managed IT services address the root cause of issues and reduce their reoccurrence, or even can prevent issues in the first place.
Managed IT Services agreements offer a combination of technology, expertise, and business advice to help you get the most from your IT expenses and services. Our managed IT services team will provide you with useful, long-term guidance on getting the most out of your technology and reducing costs to maximize your operational productivity.