Managed service provision
Managed service provision
A managed service provider runs specific (usually IT) functions for an organisation that requires specialist knowledge or expertise. The term "managed services" is being used to apply to a range of IT-related services. Commonly these relate to the Internet/WWW. So Internet security, Web site or Web application hosting, and network systems management are prime contenders.
Internet security services are a good illustration of the concept. Internet security products, concepts, and technologies are very sophisticated and are new. Few organisations have "expert" staff. It is also a fast moving area. The job of keeping up with new hacking techniques and new viruses requires a lot of attention. When the importance of this area – the vulnerability of organisations to the risks involved – is recognised, using someone else to provide that constantly refreshed expertise becomes an obvious example. Thus, a managed service may provide any or all of: monitoring and management of firewalls; intrusion detection systems; virus checking and management; Web site design and hosting; ecommerce capability; etc.
The company can be assured that these tasks are being carried out by fully-trained, competent staff – and that someone else has the task of ensuring 24-hour cover, covering sickness and holidays, etc.
Managed service providers typically provide their services on a subscription basis, over a one/two-year contract period.
The decision as to whether or not to use managed services is a "standard"outsourcing decision. The standard challenges associated with outsourcing also exist – outsourcing critical functions can result in a loss of control. There is also the fear – more imagined than real – of placing sensitive information in the hands of an organisation that may perform a similar service for competitors.
The concept is still novel. It will probably survive and prosper, though not all the first phase MSPs will. The market is small though growing. There are probably too many MSPs in the marketplace for its size. As ever, caveat emptor!
