Managed IT services heralded a proactive approach to IT, attempting to conduct maintenance, upgrades, system monitoring and issue resolution on a routine basis, with the goal of preventing problems before they started. Automation, increased Internet capabilities and cloud computing allowed for monitoring and issue resolution to be provided remotely, enabling more efficient processes and a consolidation of resources.
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From the above, it is clear that a managed service provider does not just help with technology adoption. They also help to monitor the ongoing spending and lessen the danger of introducing new technologies. While the market is already witnessing an increase in capital spending on the cloud and businesses managing IT services, it is evolving by itself.
However, as time progressed computer manufacturing grew to large scale, leaving the small IT dealer to focus less on manufacturing and more on break/fix. This system was time consuming, labor intensive, costly and reactive. It did not allow the technician room to grow their business or take on new clients without massive investments in labor and infrastructure.
The first books on the topic of managed services: Service Agreements for SMB Consultants: A Quick-Start Guide to Managed Services and The Guide to a Successful Managed Services Practice were published in 2006 by Palachuk and Simpson, respectively. Since then, the managed services business model has gained ground among enterprise-level companies. As the value-added reseller (VAR) community evolved to a higher level of services, it adapted the managed service model and tailored it to SMB companies.
Managed IT services allow businesses to delegate their IT operations to an expert third-party organization that specializes in handling these responsibilities. These third-party organizations, known as Managed Service Providers (MSPs), are responsible for the entirety or portions of a business’ IT systems, as agreed upon in a Service Level Agreement (SLA). IT equipment is typically procured by the client, and depending on the SLA, Managed Service Providers may provide round-the-clock monitoring, issue resolution and reporting, and more.