DETROIT – Majority of businesses nowadays depend on technology to function efficiently, to thrive amidst the competition, and to succeed in their respective sectors.

Considering the vital role that technology plays in today’s business landscape, keeping your IT system up-to-date is essential to every business. However, not all companies are capable of maintaining an organic IT team. Fortunately, there are IT companies, known as Managed Services Providers (MSPs), that specialize in managing the technology needs of their clients.

Managed Services is the latest trend in IT services. It refers to the offloading of IT administration and management to a third-party provider or MSP. Depending on the Service Level Agreement (SLA), the MSP is responsible for round-the-clock monitoring, maintenance, and upgrade of the IT systems, as well as troubleshooting errors.

Businesses of all sizes are increasingly adopting this service delivery model because of its much-hyped advantages. But before you join the bandwagon, it would help to get a quick look at its history.

Introduction of Computers to the Workplace

The history of Managed Services is very well linked with the history of computers.

Although computers were first used in the office in the 1930s, these machines came with limited capabilities. In the early 1980s, personal computers were considered as “intelligent terminals” and were capable of running several applications. While they proved useful, these computers had restricted functionalities.

The second half of the ’80s and early ’90s saw “more powerful computers”. During the new age of information, many businesses began to use this technology to improve productivity and digitize manual tasks. The increased adoption of computers necessitated tech experts, such as computer technicians, network technicians, and other IT support personnel, to keep them running and troubleshoot issues.

The latter part of the ’90s saw the development of operating systems and powerful software solutions. More and more businesses turned to technology. As companies become dependent on computers, they required organic tech teams. Organizations raced to recruit and equip their in-house IT departments.

Meanwhile, businesses that had no resources to spend on an organic IT team depended on break/fix IT services. In this model, the IT solution provider is contacted only if the machines had problems, slowed down, or stopped working.

The Break/Fix IT Services

Throughout the ’90s, many businesses relied on break/fix IT services. At the outset, the service delivery model seemed rational. You didn’t need to hire computer technicians to constantly service machines. After all, computer issues can be dealt with by whoever is the most tech-savvy in the workplace. With this model, it seemed that businesses save up by paying when only necessary and for the scope of the project done.

Commonsensical as it seems, the break/fix model has numerous obvious flaws. Businesses that relied on computers expected frequent glitches, downtime, and lost data. They also paid hefty fees to fix major problems that often happen unscheduled. Companies either go for months without any glitch or a week of persistent service outages.

When IT issues crop up, you need to have stand-by money to fund the repair and get your systems back.  Since you cannot foresee how much the future IT costs would be, IT budgeting was extremely difficult (and almost impossible) to estimate.

The decline of Break/Fix IT Services

The rapid rise of technology and the birth of the Internet in the late ’90s have exposed the flaws of break/fix IT services.

Aside from computers, the office workplace included numerous other unique devices such as routers, scanners, printers, network lines, and other specialized hardware. Software solutions were also starting to become commonplace. All of these needed maintenance and repair at some point. New generation computers were complicated and required more time to troubleshoot.

Considering the increased demand for IT services, the break/fix model became overwhelmed and incapable of handling the growing needs of businesses. Companies looked for an efficient and more responsive strategy to keep up with the tech errors and downtime that bogged their tech-dependent processes.

Coincidentally, the dot com era was already booming around the late ’90s. Internet speed was peaking up, which enabled IT solutions providers to manage computers remotely. Several companies began offering online IT help desks where IT professionals troubleshoot computer errors over the Internet. They used customized coding and scripts to automate remote tech repairs. Soon, specialized web-based applications were developed to monitor customer systems and solve problems more efficiently. IT professionals deploy these solutions to multiple clients anytime.

Initially, services were available only on an on-demand basis. But since businesses clamored for a solution that would keep their systems running smoothly, service providers started to offer continuous coverage. Subscription-based programs assured businesses of fixed, predictable costs, which simplified IT budgeting.

The Managed IT Services

The early 2000s saw the emergence of managed IT services. New IT consultancies mushroomed. They filled up their ranks with IT specialists who had a variety of skill sets and experiences. This enabled them to offer comprehensive IT consultancy services to different industries. Likewise, many break/fix IT service providers also modified their service delivery model to cover service-level agreements with flat-rate fees. The new model cut down IT costs because they had to do fewer troubleshooting.

According to AWS consulting experts at BeCloud, this shift in service delivery transformed the entire IT services industry. Instead of waiting for problems to occur, providers were working hard to avoid them from happening. Strategies have shifted from reactive to proactive.

Managed IT Services proved beneficial for both the customers and the MSPs. Companies benefited from fewer glitches and errors by improving efficiency and increasing productivity. On the other hand, MSPs worked harder to keep their customers satisfied and retain their services. Also, fewer errors meant fewer headaches for them.

Fast forward to this day, a lot has changed. The Managed Services market has evolved to become a predominant sector of the IT industry. There are numerous MSPs in the market today that offer a variety of products and solutions. Businesses of all sizes now rely on Managed Services for their IT needs. Collaborating with an MSP has become vital to ensure the quality of your IT systems.

This article was provided by Alex Serbin