In-House IT or Managed IT Services for SMBs
Cloud has indeed become a winning innovation for numerous organizations, irrespective of their size. It has played a vital role in creating a major upturn in the overall IT industry. In the past, most of the companies made utmost efforts to scale in-house IT infrastructure as it was considered as a major benefit to their business. Now however, with an increase in the amount of data and the incorporation of cloud services, companies are investing more and more in IT infrastructures.
The cost of managing the IT infrastructure has drastically increased. It isn’t merely the industry giants investing in IT infrastructure; many SMBs too are following suit. According to Ponemon Institute’s analysts, the average cost of IT infrastructure failure $5,600 per minute! This drastically increasing cost and complex IT infrastructures have pushed companies to search alternative ways of expanding and managing their infrastructure. Majority of them have found the solution in IT managed services but that also brings about numerous concerns regarding the company’s privacy.
Managed Services or In-House Services?
Managed services provide the organizations a chance to off-load all or some of their IT functions to a third party. These managed services have become popular with numerous companies as it helps them in expanding and managing the IT requirements for bandwidth, capability, power, and space in an effective way. If done right, this can assist the business in cutting cost and creating new labor and capital efficiencies. However, the most crucial questions that arise within the company regarding opting for managed services is whether it is the right decision to trust a few complex and private IT functions with a third party? It has raised concerns about data theft or leaking of company’s private information.
The key is to strike a balance between both managed and in-house IT services. There are certain functions that must be kept in-house while others can be safely trusted with the third party. Before investing in managed services, it is essential for the company to determine their goals, and reasons behind making this switch and come up with a strong strategy to create an ideal outsourcing and in-house model.
Let’s have a look at the two major benefits and reasons SMBs should consider managed IT services for most of its IT functions:
This is one of the popular reasons why most companies opt for managed services as it helps in removing or reducing the costs of staffing, management, or equipment on their in-house data center. Even the smallest data center can save up to 50% by switching to managed services. According to IMS Research, the co-location market is estimated to reach $10 billion by 2017 in America. Performing a detailed analysis can help companies in determining how much outsourcing they need.
Compliance and Security
Industry and government regulations like PCI DSS, Sarbanes-Oxley, and HIPAA are a norm now, authorizing protection for both financial and personal data. The standard noncompliance penalty as per requirements of PCI DSS is between $5,000 and $500,000 per incident, which indicates the importance of aligning with their requirements. Managed services automatically include security components which meet those requirements like infrastructure alarms, coded access, and biometric scanners as a major part of their package. For the many companies, trusting managed services might be more cost effective and secure.
Today, companies fully understand that a certain level of managed IT services is important for their security. The increasing costs of IT equipment, and amount of data has made is essential to incorporate a mixture of managed and in-house IT services. This is the only ways for businesses to operate with increased efficiency, manage costs, and make plans for their future growths.