Msp Benefits

MSP drivers include the shortage of skilled professionals, the increasing complexity of network and systems management, the rapid evolution of technology, and the need to monitor on a 24x7x365 basis. An MSP offers organizations a subscription-based external service to manage their infrastructure resources or applications. The MSP vendor provides tool implementation and external tool hosting, or hosting within the customer environment. MSPs predominantly target E-business applications and small to mid-sized companies.

In addition to cost advantages, MSPs offer these organizations rapid time to value, due to quick implementation; an ongoing relationship, to ensure subscription renewal; supplementation of staff resources with additional expertise; and an outside perspective. Because the MSP hosts the solution, the organization can be up and running quickly. This fast implementation contrasts sharply with the long implementation times required for an organization to host a solution in-house.

The MSP model also supplements the IT staff in new technology areas — specifically, in E-commerce application management. By doing the repetitive work, MSPs free the IT staff to focus on higher-level, value-added programs.

One analyst group recently estimated that the demand for IT professionals exceeds the supply by 30 percent. The labor shortage is particularly acute in network and systems management, which people have not been trained for, and which does not represent a growth path.

Frameworks have failed to solve the labor shortage problem. Enterprise management tools from the likes of Compuware, Tivoli, and Computer Associates are too expensive, too difficult to implement, and require too many people. So the management solution becomes a management problem in and of itself, whereby enterprise software is partially implemented, it becomes shelfware, or its use is not widespread across all environments. When its champions leave the company, the tools are seldom used.

By contrast, the MSP allows people to manage via the Internet on a subscription basis, so a $100,000 to $150,000 up-front cost is not required. Not only is there a low cost of entry, but payment on a monthly basis means the work comes out of the services budget, rather than that of capital acquisition. Therefore, organizations do not get caught up in budget/approval cycles, where different price points require different authorizations. The monthly basis keeps the sale lower in the organization, helping both vendors and users.

In addition, the MSP bears the initial and continuing costs of investing in hardware and software infrastructure, while the customer company simply pays a monthly fee. There is also relatively low risk to companies that choose an MSP solution. If the provider is not meeting its needs, the organization can cancel the subscription and go elsewhere.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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