What is a managed service? • Blisstech Solutions • Expert IT Services

If computers are an essential part of your business you will probably have someone looking after them for you, but what type of service are you getting from them?  Have you heard the expression “Managed Service” or “Break/Fix”?

You may have heard these expressions and wondered what they mean and how they differ. First, let’s understand how managed services came to exist.

What do manged services cost?  

Managed Services – Brief History

In the early days, everything was centralised; businesses used mainframes and hired their own teams to look after them.   Mainframe software was written in-house and the people who wrote the software were on the payroll so they could fix any problems.  Computers were just dumb terminals, so there was very little to go wrong. If it broke, you just put a new terminal on the desk and away you went.

Then IBM introduced its Personal Computer.  The PC started replacing the dumb terminal, and network servers like Novell Netware and Windows NT started to appear.  Processing was sitting away from the mainframe and PCs were far more expensive than the dumb terminals.  PCs ran off-the-shelf software and, if they broke, it was not easy or cheap to replace them.

New complexities call for new skills and teams, formed to deal with PCs and servers. As the balance shifted further away from centralised computing, so the PC and server teams grew. Some were big enough to break off and become companies in their own right and sell their services back to their parent company, as ITNet did with Cadbury’s.

Companies like ITNet are IT outsourcing companies, not Managed Service Providers.  Early outsourcing was quite crude, effectively taking on all of the IT operation and existing IT staff. 95% of the team involved in the outsourced service would be physically present on the customer’s site so that the service could be delivered. Outsourcing companies provide the teams to run a customer’s IT department.   However, they are reactive to issues, waiting for problems to occur before fixing them. This is known as “Break/Fix“; you wait for something to break, and then you fix it.

Over the next 25 years, things evolved and Managed Services were developed and refined. It is now possible to offer a managed service for almost any piece of IT equipment, software or service. Thanks to the internet and cloud computing, everything can be managed remotely and it is usually not necessary to install dedicated systems physically at the customer’s site.

Managed Service or Break/Fix – What is the Difference?

The key differentiator of a Managed Service over Break/Fix is that Managed Services are proactive and not reactive. A managed service does not wait for something to break before fixing it. It monitors and maintains your systems so that they are much less likely to break in the first place.  In a Break/Fix model you pay a small monthly retainer and are charged by the hour for work that is required.  With a Managed Service you pay a fixed monthly fee but all support is included, and you are only charged for new software, hardware, project work, and any changes that you request.  Managed Service Providers (MSPs) will typically bundle everything into the service and manage the lot for a fixed monthly fee.  This can also include hardware and software if you wish, and your other  IT systems such as:

  • Network and WiFi
  • PCs
  • Servers
  • Backup, Disaster Recovery and Business Continuity
  • Printers
  • Security (Firewalls, Antivirus, etc)
  • Office 365
  • Line of business software 

While a system is under the management of the MSP, it is in their interest to ensure the system is monitored, up to date and secure, meaning that it is less likely to fail and your business is less likely to experience disruptions.  In the event of any issue, the MSP is most likely to know about this before you do and will fix it remotely, perhaps before you were aware there was even a problem.  Great huh?

Of course, you have to pay upfront for this and some do not see the immediate benefit, but it is cheaper in the long run and MSP costs are predictable; IT outage costs are far from that!  According to CompTIA, 46% of companies that use managed IT services have cut their annual IT costs by 25% or more. 

Think of IT this way…

Think of MSP costs like insurance; you wouldn’t drive your car without insurance, or fail to insure your home.  However, you are more likely to have an IT failure if your systems are not properly looked after than you are to have a car accident or property stolen.  Just something for you to think about 😉

Contact us if you’d like to know more.

More Content

A person in a hoodie surrounded by green cipher text

3 Things You Must Do to Protect Against Ransomware

Ransomware is an increasingly common and devastating cyberattack that can happen to any business. The ransomware attacks that get the most media attention are those on high profile companies, but ransomware attacks on small businesses are increasing too. Many smaller...
Copilot is bringing another productivity boost to Teams

Copilot is bringing another productivity boost to Teams

Teams is getting some Copilot-powered updates that will boost your business’s productivity even further. Here we tell you all about it.

Heads up: You need to update Windows 11 by this deadline

Heads up: You need to update Windows 11 by this deadline

Have you updated to the latest version of Windows 11 yet? If not, it’s time to act – Microsoft has announced when it will end support for older versions (and it’s soon!).

Shady character in a mask sitting by computer screens

A new zero-day vulnerability in Windows

Introduction A new zero-day vulnerability in Windows Search has been discovered which can be exploited to automatically open a malicious search window containing remotely-hosted malware executables. The vulnerability is triggered when a user launches a Word document,...

Charging in public places? Watch out for “juice jacking”

Airports, hotels, cafés, even shopping centres, offer public charging points where you can boost your phone or laptop battery on the go. They’ve been in the news after the FBI recently tweeted advice to stop using them. Crooks have figured out how to hijack USB ports to install malware and monitoring software onto devices as they charge. The security risk …
Read More

Ransomware Attacks Grow for Small Businesses

Two organisations have recently released reports on the state of ransomware and cybersecurity incidents affecting small businesses. Datto's State of the Channel Ransomware Report Datto has recently released their "State of the Channel Ransomware Report"  for 2019...
Overconfident employees: Your hidden cyber security threat?

Overconfident employees: Your hidden cyber security threat?

Your team are smart, right? They’d never fall for a scam email or click a suspicious link. At least, that’s what they think. Here’s why overconfidence could spell disaster for your business’s security.

OneDrive Backup Tip Video Thumbnail

Tech Tip: Using OneDrive to automate backups

Happy Tuesday everyone! Today's Tech Tip is a tip on how to use OneDrive to automate the backup of Known Folders. Known Folders are what Microsoft call your Documents, Desktop and Pictures folders in your Windows profile. If you are like most people, you will accept...
Searching in Windows 11 is about to get easier… for some

Searching in Windows 11 is about to get easier… for some

Searching for files in Windows isn’t always a smooth experience. Sometimes it’s slow and often it’ll show you web results rather than the file you need. But Microsoft is making things much simpler… for some people. Here’s how you can benefit from this.

Tech Tip: Avoid this OneDrive AutoSave Pitfall

Welcome to a new Tuesday tech tip video. In it, I explain a OneDrive AutoSave pitfall that you should learn to avoid. If you use Microsoft Office applications and store your data in OneDrive, you are probably familiar with the AutoSave feature. This does precisely...
Share This
Contact
Love Lane
Cleobury Mortimer
Shropshire DY14 8PE

01299 382 321
[email protected]
Copyright © Blisstech Solution Ltd
Registered No: 08125391 VAT No : 307 5490 05