Managed Technology Services is the term describing vendor-managed outsourced technology operations. The responsibility often extends to fully managed technology infrastructures, compliance, and security, affecting users and business information. More specifically the term refers to the strategic and operational go-to function for all technology matters on behalf of any business community. The vendor, in this case, the Managed Service Provider, or MSP, is fully accountable for the operational requirements imposed by technologies, users and information, designated in advance by service availability agreements.
Pricing
MSPs solve the complex technology management problem for small businesses (companies or non-profit organizations with 5 – 100 employees) for a fixed monthly fee, usually calculated per-user. Infrastructure, industry regulations, security and data requirements, and accessibility all influence the pricing.
Solutions include not only technology infrastructures, but also recurring services, strategy, cost-efficiencies, and projects. (Some Managed Service Providers charge extra for this, which is a little controversial because by definition should be motivated to work proactively for the client in every way possible.) Emergency, 24/7 support is usually priced separately, as some clients simply don’t require support outside of business hours. The tools, systems, and products used by MSPs are included with the monthly flat-rate pricing, as those are just the cost of doing business. Technology projects are usually priced separately and can be based on the estimated number of hours it will take to complete the project or a flat-rate for the project. It is wise to push for a flat-rate as you don’t want to be stuck with a higher than expected bill if the project takes more time. Read more about which pricing model is best for your business here: Comparing Managed Technology Services and Break-Fix Plans Services and Break-Fix Plans.
The Technology Support Team
MSPs employ technical experts who specialize in and have extensive experience with business networks, computer support, security, and other small business technology needs. Ideally, the MSP is only employing full-time employees, not independent contractors, enabling more control and security. As full-time employees, the MSP can require the technical engineers, network administrators, and help desk team that is supporting your secure network and data to have a background check and sign confidentiality agreements. Also, the MSP can have a comprehensive general liability insurance policy and Errors and Omissions policy in place to cover their employees and protect the client. Generally, managed services are delivered from a Network Operations Center (NOC) using a Remote Monitoring and Management (RMM) system, however, proactive onsite and emergency services are also provided when necessary.
Included Services
Services range from basic monitoring to comprehensive support and consulting, backup solutions, business continuity planning, workflow improvement, network optimization, and high-level security. When partnering with an MSP, it is important to understand what services are included. The variety of services that are provided varies greatly depending on the provider and is also expanding. Broad categories include:
- Computer setups, support, optimization, and maintenance
- Server setup, support, optimization, and maintenance
- Network support, optimization, 24/7 monitoring, and maintenance
- Data backup checks and solutions
- Technology consulting
- Technology project assessments and management
- Cybersecurity and Endpoint protection
- Basic procurement services and new equipment setup
- Email services and support
- Voice services and support
MSPs offering a more comprehensive approach also include:
- Continuity planning
- Equipment/software research, advanced procurement services, and extensive quoting
- Technology consulting for:
- Cloud solutions and data warehousing
- Businesses that are scaling quickly
- Businesses that are expanding into new locations
- Compliance and standardization
- Businesses that must comply with industry regulations
- Compliance and audit planning for HIPAA or the SEC
- High security and confidentiality requirements
- Security assessments, protocol development, and training
- Extensive email services such as archiving for compliance
- Third party vendor management
- Client-specific process and procedure development
MSP that have only full-time engineers on their team and offer these additional services tend to charge more per month, however, it can be well worth it. As we often say, “For less than the cost of a single hire, you get the infrastructure and support from an entire team of technology experts.” Small business communities can greatly benefit and find value in off-loading this work, and can also be better protected with background checks, confidentiality agreements, and comprehensive insurance policies. Small business communities with 5 – 100 stakeholders, including partners, vendors, employees, and consultants, fit well into the MSP model. Most often it does not make sense to have technology support employees on staff, because of the management and performance review responsibilities, payroll and benefits expenses, turnover, absences for illness and vacation, skills and experience limitations, and the investment in the tools and systems that make managed technology services so beneficial.
If you would like to better understand the MSP model and determine if it is the right fit for your community, give us a call. We promise to provide an unbiased opinion, recommendation, and additional information to help you find the right technology solution for your community.