Decoded: Managed Services

What IT Managed Service Providers Are Really Selling

October 2014


Managed services refer to the practice of outsourcing day-to-day management responsibilities and business functions as a strategic method for improving operations and cutting expenses.

Because small business owners have to wear so many hats and because adding head count to their payrolls may be cost-prohibitive, many hire outside firms to handle non-core business functions, like information technology (IT).

Tech Term, Simplified

A managed service provider is a type of IT service company that delivers network, application, system, and e-management services across a network. Managed service providers tend to be web hosting or application service providers that, in most cases, own the physical back-end infrastructure and provide resources and support to businesses remotely over the Internet on a self-service, on-demand basis.

How It Can Help Small Businesses

The practice of managed services allows a business to off-load IT operations to a service provider. Providers assume an ongoing responsibility for 24-hour monitoring, management of and problem resolution for the IT systems within a business. They keep up with backups, patches, and security to reduce the odds of a business facing an IT outage or other problems. Managed service providers offer defense and recovery for e-mail server, customer relationship management system, financial platform, and network failure.

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