What are IT managed services
The current era of technological change is fast-paced and the lines between consumer and business use of technology are blurring with social media, mobile, tablet and hybrid devices. We are witnessing successful technology IPOs and a massive influx of venture money into tech companies. The one constant in the midst of rapid technological change is that companies continue to try to adopt and adapt technology to improve their competitiveness and productivity.
However, the technology recession of more than a few years ago has had an incalculable impact on the way companies plan and deploy technology. There is an innate conservatism in the purchase of new technology, as there is an emphasis on flexible versus large purchase models. Managed services are not steady. Its growth rate is unlikely to be as high as other technologies during a boom, nor will it decline during a downturn.
Managed services, at their core, are about helping businesses manage their infrastructure, but they are now evolving quite dramatically. New consumption models where vendors own the assets, such as public cloud, private cloud and hybrid models, have become an irreversible trend. As these models continue to evolve and expand, the fundamentals of proactively managing a company’s infrastructure remain the same. There is a lot of talk about cloud computing in its various forms, but underneath it all is the management of the client’s IT infrastructure.
Role of IT managed service
As a result, IT vendors of all types and sizes are trying to perfect and optimize the functionality of these managed services. The client consumption model is becoming increasingly well defined. As all businesses are finding out, it is not just about introducing new technology, but about how to make that technology truly impact the business in its day-to-day operation and integration into the business. The serviceability of new technologies is now a top priority and managed services are becoming increasingly important.
For those of us in the midst of a new technology boom, it is a boom fueled mostly by consumers vs businesses. Corporate spending on new technology has not translated into growth for most IT vendors. How to succeed in this new technology consumption era is still a work in progress for most IT vendors. Around 80 per cent of the world’s largest technology companies that publish their product and service revenues report that their product revenues have remained flat or declined over the past few years.
On the other hand, services revenue has increased by $12 billion over the same period. During this same period, professional services, support services and education services have remained largely flat, with managed services being the only service side to grow. Many of these vendors are working diligently to change their models to meet new customer demands for how they want to source and use technology.
Many of these vendors are keen to change their models to meet new customer demands for how they want to source and use technology. The importance of managed services cannot be over-emphasised and they are truly at the forefront of the transition to the new utility model