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Managed Services Future Processing Adam Gaca
Cloud

Managed Services Model: the benefits and key aspects

date: 17 October 2023
reading time: 12 min

Today we take a closer look at Managed Services Model: what they are and what are their benefits and key aspects. Let’s dive in.

Key takeaways:

  • Expertise and cost efficiency: Managed Service Providers (MSPs) offer specialized skills and knowledge, providing cost-effective solutions by eliminating the need for businesses to hire and train in-house teams. This ensures access to high-level expertise while optimising budget allocation.
  • Scalability and flexibility: Managed services offer scalable solutions that can adjust to a business’s changing needs, whether during growth phases or downsizing, ensuring the services remain aligned with business objectives.
  • 24/7 monitoring and reduced downtime: MSPs provide continuous monitoring and support, which helps in promptly identifying and addressing potential issues, thus minimising downtime and enhancing overall system reliability and performance.


What are managed services?

Managed services are a type of business model where a company outsources the management and support of its IT infrastructure and applications to a third-party provider. The provider, known as a Managed Service Provider (MSP), assumes responsibility for maintaining and monitoring the client’s technology environment based on agreed-upon service-level agreements (SLAs), with up to 24/7 coverage.

The service is handled by IT Service Management experts, namely Service Delivery Managers, who are operating on ITIL-based processes enhanced by DevOps, Agile & Lean IT practices. Those should be tightly implemented into the IT Service Management Tool which serves as a dedicated customer portal.


What are the benefits of managed services model?

Managed services offer a range of benefits for businesses across various industries.

The most significant ones include:

  • Expertise and specialisation: Managed service providers (MSPs) are often specialists in their field. They bring a high level of expertise and knowledge, allowing businesses to access skills that might be too expensive or difficult to hire in-house.
  • Cost efficiency and predictability: Managed services can often be more cost-effective than maintaining an in-house team for certain tasks. Businesses can avoid costs associated with hiring, training, and retaining employees, as well as the expenses of infrastructure, hardware, and software.
  • Focus on core competencies: By outsourcing certain tasks to managed service providers, businesses can concentrate on their core competencies and strategic goals. This can lead to increased productivity and better allocation of resources.
  • Scalability: Managed services are flexible and can adapt to a business’s changing needs. Whether you’re experiencing growth or downsizing, MSPs can adjust their services to match your requirements.
  • 24/7 Monitoring and support: Many managed services include continuous monitoring and support, ensuring that potential issues are detected and addressed promptly.
  • Reduced downtime: Managed service providers often have robust disaster recovery and business continuity plans in place, minimising downtime in the event of system failures or data breaches.
  • Access to the latest technology: MSPs stay updated with the latest technological advancements, allowing businesses to leverage cutting-edge tools and solutions without the hassle of constant research and implementation.
  • Security, compliance and risk mitigation: Managed service providers often have expertise in cybersecurity solutions and compliance requirements. They can help businesses maintain a strong security posture and adhere to industry regulations.
  • Faster implementation: MSPs are experienced in implementing various solutions, which can speed up the deployment of new technologies or services compared to building and implementing them in-house.
  • Improved performance and reliability: MSPs often provide high-performance infrastructure and systems, leading to improved reliability and better user experiences.
  • Vendor management: MSPs can manage relationships with multiple vendors, streamlining procurement processes and ensuring smooth operations.

While managed services offer numerous benefits, choosing the right provider and establishing clear communication and expectations are crucial for a successful partnership. The suitability of managed services depends on the specific needs and goals of each business.


Types of collaboration models

Here’s a brief description of the three types of collaboration models in cloud computing:

  1. Augmented collaboration model:
    • Description: In this model, the cloud service provider augments the existing IT team of the client. The provider supplies additional expertise, resources, or tools to enhance the client’s capabilities. The client’s IT team remains in control of operations but benefits from the specialised skills and support from the provider.
    • Use case: Ideal for organisations that need extra support during peak times, specific projects, or when there’s a skills gap in the team.
  2. Co-Managed collaboration model:
    • Description: The co-managed model involves a shared responsibility between the client’s IT team and the cloud service provider. Both parties work together closely to manage the cloud operations. Responsibilities are clearly divided, allowing for a collaborative approach where both teams contribute their strengths.
    • Use case: Suitable for organisations that want to retain some level of control and in-house expertise while leveraging the provider’s capabilities for better efficiency and innovation.
  3. Fully Managed collaboration model:
    • Description: In a fully managed model, the cloud service provider takes full responsibility for the management of the cloud infrastructure and services. The client delegates all tasks, including monitoring, maintenance, security, and updates, to the provider. This allows the client to focus on core business activities without worrying about the technical details.
    • Use case: Best for organisations that prefer to offload their entire cloud management to experts, ensuring high levels of service, reliability, and performance without needing to invest in in-house IT resources.

Each model offers different levels of involvement and control, catering to varying needs and preferences of organizations seeking to leverage cloud computing.


Governance and reporting

A crucial aspect of any managed service is governance structure, which involves the establishment of procedures and mechanisms to ensure effective oversight and management of outsourced services.

A Service Delivery Manager oversees regular reporting on Service Level Agreements (SLAs) and Key Performance Indicators (KPIs), aiming to uphold service quality. A Continuous Service Improvement (CSI) approach is employed to iteratively enhance service processes and outcomes.

Jointly with the customer, quarterly and yearly service reviews are conducted to maintain alignment between the provided services and the customer’s business objectives and long-term IT strategy, fostering consistent optimisation and strategic coherence.

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Proactive or Reactive Managed Services Model?

Proactive and reactive managed services differ in their approach to handling IT operations and issues:


Proactive Managed Services Model

Proactive managed services involve anticipating and addressing potential IT issues before they become major problems. The focus is on preventing disruptions and optimising performance. This approach includes continuous monitoring, regular maintenance, and preemptive problem-solving.

Proactive managed service providers (MSPs) work to identify vulnerabilities, bottlenecks, and other issues early on, aiming to maintain a stable and efficient IT environment. This approach is characterised by a proactive stance towards IT management, aiming to minimise downtime and deliver a seamless user experience.

Proactive managed services also utilise automation to continually monitor and maintain a client’s IT infrastructure, minimising manual intervention and enhancing efficiency. They focus on implementing technological improvements, ensuring that the client’s systems stay up-to-date, competitive, and optimised for both cost and performance.

Additionally, proactive managed services prioritise security measures and reliability, employing real-time threat detection and 24/7 support to safeguard against disruptions and cyber threats, ultimately ensuring consistent, dependable operations.

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Reactive Managed Services Model

Reactive managed services on the other hand, primarily involve responding to IT issues as they arise. When a problem occurs, the MSP takes action to resolve it. While this approach can address immediate concerns, it may lead to downtime and disruptions while waiting for issues to be identified and resolved.

Reactive managed services are generally more responsive rather than anticipatory, which can result in a less stable and more unpredictable IT environment.


Proactive vs Reactive: which one to choose?

In summary, proactive managed services prioritise prevention and early detection of issues, while reactive managed services focus on addressing problems after they’ve occurred.

Many businesses prefer a proactive approach because it helps maintain a stable and reliable IT infrastructure, reducing the impact of potential disruptions and improving overall operational efficiency.

Proactivity also allows the business owners to focus on daily business as the service is maturing and improving efficiently.

Read more about Managed Services:


The MSP competencies and roles

Successfully managed service delivery requires a range of competencies to effectively manage, optimise, and secure the services provided.

Here’s a breakdown of different roles and their scopes:

  • ITSM Consultant – An ITSM (IT Service Management) consultant is responsible for designing, implementing, and improving ITSM frameworks and processes. They ensure that the services align with business objectives, and they provide expertise in areas such as ITIL practices, service catalogue management, and continual service improvement.
  • Service Delivery Manager – The Service Delivery Manager oversees the overall service delivery, ensuring that SLAs are met, service quality is maintained, and customer satisfaction is achieved. They act as a bridge between the service provider and the customer, managing relationships and addressing any issues that arise.
  • DevOps (Site Reliability and Platform Engineering)DevOps professionals with expertise in Site Reliability Engineering (SRE) and platform engineering focus on ensuring the reliability, availability, and performance of applications and infrastructure. They automate processes, monitor systems, and implement solutions to prevent and resolve incidents.
  • DataOps – DataOps specialists manage data pipelines, ensuring efficient and reliable data processing, integration, and analysis. They collaborate with data engineers and data scientists to optimise data workflows and ensure data quality.
  • SecOpsSecOps professionals specialise in cybersecurity and focus on securing managed services against threats and vulnerabilities. They implement security measures, monitor for security breaches, and respond to incidents to safeguard the integrity and confidentiality of data.
  • FinOpsFinOps practitioners manage the financial aspects of managed services, optimising costs and resource allocation. They track expenses, identify cost-saving opportunities, and align spending with business priorities.
  • Software DevelopersSoftware developers create and maintain applications that power the managed services. They write code, design solutions, and collaborate with other teams to deliver features and functionalities that meet customer needs.
  • Software Quality Assurance – Quality assurance professionals ensure that the software and services delivered meet high standards of performance, functionality, and reliability. They conduct pentesting, identify defects, and work with developers to resolve issues before deployment.

Each of these roles contributes specific expertise to ensure the smooth and successful delivery of managed services. Together, they form a collaborative and multidisciplinary team that addresses various aspects of service management, technical implementation, security, quality, and customer satisfaction.


Key aspects of Future Processing’s Managed Services Model

In the present day, managed services continue to be a critical and growing sector within the IT industry. They encompass a wide range of services and solutions designed to address the evolving technology needs of businesses.

Here are some key aspects of the Managed Services by Future Processing:

  1. IT Infrastructure & Application Management – comprehensive management of IT Cloud Infrastructure & Platforms, be it cloud-native or hybrid solutions. It ensures optimal performance, security, and scalability while handling routine maintenance tasks, upgrades, and troubleshooting.
  2. Network and Security Services – providing network management and cybersecurity services to protect businesses from cyber threats. This includes implementing technical solutions like firewalls, intrusion detection systems, and security functions like SOC enhanced by SIEM and SOAR to safeguard against unauthorised access, data breaches, and other security risks while constantly improving the security baseline.
  3. Cloud Services – with the growing popularity of cloud computing, Future Processing offer services related to cloud infrastructure & application architecture, management, migration, and optimisation. Future Processing assists clients in selecting the right cloud platforms, managing cloud resources, and ensuring data backup and disaster recovery.
  4. Remote End-user Support – delivering service desk support and end-user assistance to ensure smooth and efficient operations. Future Processing provides technical support, addresses user issues, and resolves IT-related problems.
  5. Data Backup and Recovery – offering data backup solutions and recovery services to protect critical business data. This includes regular backups, off-site storage, and the ability to recover data in case of data loss or system failures (Disaster Recovery). This is a part of a Business Continuity Plan.
  6. Vendor Management – acting as a single point of contact for coordinating with various technology vendors. Future Processing manages relationships, negotiates contracts, and oversees vendor performance to ensure the smooth integration of different technology components.
  7. Proactive Monitoring and Maintenance – employing advanced observability tools and technologies to track system performance & resiliency, identify potential issues, and proactively address them. This approach helps minimise downtime, enhance system reliability, and optimise IT resources.
  8. Operational Excellence – achievement of optimal efficiency, reliability, and service quality through the systematic implementation of ITIL’s best practices and processes, such as incident management, problem management, change management, and service level management, resulting in streamlined operations, minimised downtime, improved customer satisfaction, and continuous service improvement.
  9. Governance – encompasses the establishment of policies, procedures, and rules that guide the delivery and management of services. Governance structure ensures accountability, compliance, and adherence to best practices, helping to maintain quality, security, and efficiency in the provision of managed services. It also provides a framework for decision-making and risk management, contributing to the overall success and reliability of the services offered.
  10. IT Consulting and Strategic Planning – offering IT consulting services to assist clients with technology strategy, planning, and implementation. Future Processing helps businesses align their IT initiatives with their goals and provides insights on emerging technologies and industry best practices.

Future Processing’s Managed Services are characterised by their focus on providing comprehensive, proactive, and customised IT management and support to businesses of all sizes.

The end goal is always to enhance operational efficiency, improve cybersecurity & resilience, reduce IT costs, and enable organisations to focus on their core competencies while leaving their technology needs in capable hands.

Are you keen to know more and take advantage of Future Processing’s offer? Do get in touch!

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