THE ENTERPRISE GUIDE TO MANAGED SERVICES INTRODUCTION
Whether you’re considering using managed services for the first time or looking to get more value out of your existing relationships, “The Enterprise Guide to Managed Services” has you covered.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 2 TABLE OF CONTENTS
THE WHAT, WHY, HOW AND WHO OF MANAGED SERVICES 4
MANAGED SERVICES IS LIKE ICE CREAM 5
ARE MANAGED SERVICES RIGHT FOR YOUR BUSINESS? 6
BUILD OR BUY: THE NETWORK MANAGER’S CONUNDRUM 7
DO YOUR DUE DILIGENCE: 8 37 QUESTIONS TO ASK BEFORE SIGNING A MANAGED SERVICES CONTRACT
HOW TO MANAGE MANAGED SERVICES 12
FOUR WAYS TO GET THE MOST FROM YOUR MANAGED SERVICES 13
THE ENTERPRISE GUIDE TO MANAGED SERVICES 3 THE WHAT, WHY, HOW AND WHO OF MANAGED SERVICES
WHAT ARE MANAGED SERVICES? Managed services refers to the outsourcing of the day-to-day management of a specific function. Managed services are available for a wide range of a number of IT-related activities. Unlike IT project work or break/fix support, managed services provide proactive support and maintenance on an ongoing basis.
WHY USE MANAGED SERVICES? The proactive management of IT resources enables organizations to keep IT services operational and up-to- date, minimizing problems and downtime. But this requires resources that strapped IT departments may not have. Managed services provide organizations with a cost-effective way to supplement their IT resources, allowing them to free up employees to focus on activities with the highest strategic value. It also enables companies to take advantage of:
• Lower total cost of ownership (TCO) thanks to economies of scale they may not be able to achieve on their own;
• Cost-effective access to enterprise-level support; • Access to deep domain expertise they may not have in-house; and • Predictable operating costs via fixed monthly fees.
HOW DO MANAGED SERVICES WORK? Managed service providers (MSPs) typically offer a subscription model and charge a monthly fee. There will be a service-level agreement (SLA) that spells out the performance and quality metrics that can be expected. The MSP will monitor and proactively manage the components it is responsible for remotely. Additional offerings may be included depending on the type of managed services provided.
WHO BENEFITS FROM MANAGED SERVICES? The fact is just about any organization can benefit from managed services. Small and medium-sized business that do not have large IT staffs can cost-effectively expand their IT capabilities without adding expensive headcount. And large enterprises can leverage managed services to scale for growth and maximize the efficiency and productivity of their IT resources.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 4 MANAGED SERVICES IS LIKE ICE CREAM
“Managed services” is a general term referring to the outsourcing of day-to-day management of a function, often in the IT arena. But like ice cream, managed services come in many flavors. Here are some common managed services offerings.
MANAGED CONNECTIVITY A managed connectivity provider will ensure that your organization’s multiple sites are connected with sufficient bandwidth and availability. This entails selecting the right solutions, tying them together, monitoring them, detecting problems and immediately initiating remediation actions.
MANAGED WIFI Wireless access can make employees more productive and offer added value for customers and partners. But setting up a well-designed, secure network and keeping it up and running requires specific knowledge. The managed WiFi provider delivers this expertise and manages software and firmware updates on an ongoing basis.
MANAGED NETWORK/ROUTER Network and router services can be complex installations. A managed network/router provider will configure deployments to meet your organization’s specific requirements and will be able to monitor performance and troubleshoot problems.
MANAGED VOICE A managed voice provider will manage your communications systems including installing the equipment, training users, managing updates, and monitoring and supporting the system on an ongoing basis.
MANAGED SECURITY It is critical to ensure the security of your organization’s network and data. A managed security provider will deploy and manage the full range of security solutions – including firewalls, intrusion detection systems, vulnerability assessment tools, antivirus solutions, etc. – needed to safeguard your business. And the provider will be able to stay on top of the latest vulnerabilities so your IT staff doesn’t have to.
MANAGED BUSINESS CONTINUITY Having a business continuity/disaster recovery plan in place is critical, but many resource-strapped IT organizations move it to the bottom of the priority list because, unlike many other activities, it doesn’t have a “right now” impact. A managed business continuity provider performs business impact analyses and risk assessments, builds and manages the plans, and executes the plan in the event of a business disruption.
Like ice cream, there’s a managed services offering for just about any taste or need. And like ice cream, you don’t have to pick just one flavor – you can combine as many as you want based on what makes the most sense for your business.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 5 ARE MANAGED SERVICES RIGHT FOR YOUR BUSINESS?
IT systems are critical business enablers in any industry, yet the ability to procure and maintain a competitive infrastructure is becoming increasingly difficult for many enterprise organizations due to budget and resource constraints. Savvy service providers are stepping up to the plate to offer their expertise in the form of managed services, but it can be difficult to know if and when it makes sense to outsource enterprise IT functions. Here are a few scenarios where managed services can help:
• You need to roll out a new initiative and you lack in-house expertise – Maybe you’re getting ready to launch a big data initiative, or you want to build a flexible network that can quickly adapt to support new applications and services. You know what you need, but your team doesn’t have the time or expertise to get you there, and it costs a fortune to hire and train new staff.
• Your business is growing quickly, and you need to support branch offices – Whether your business is expanding due to organic growth or acquisition, it’s critical that every office has access to the same scalable, high-performance network services to facilitate communication. But it can be a challenge to manage an array of different networks, powered by service providers with varying network services.
• Your IT systems have become unwieldy to manage – With multiple offices and increasing demands on your IT staff, your team is spending more time putting out fires than focusing on strategic business initiatives. At the same time, technology is evolving rapidly, and it’s time-consuming and tedious to keep required software and hardware up-to-date. You need to free up your team, and streamline your operational costs.
If any of the above scenarios describe your situation, it may be time to investigate your options. With managed services, your organization can gain access to IT services and technologies that are managed and maintained by a qualified team of professionals – without having to make a capital outlay, or hire and train staff. This can provide a cost-effective way to supplement your IT resources so you can free up employees to focus on activities with the highest strategic value, and allows you to better predict operational costs.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 6 BUILD OR BUY: THE NETWORK MANAGER’S CONUNDRUM
Your network is taking a pounding from the company BYOD initiative, and you’ve noticed increased latency and other performance issues as various business units take full advantage of easy-to-access cloud services. Not to mention your own efforts to leverage the cloud and virtualize services. It’s clear your corporate wide area network (WAN) needs an upgrade, and now it’s decision time. Are you going to build a next-gen WAN to keep pace with increased bandwidth requirements, or are you going to lease a managed private network from a service provider? Before you get started, you’ll want to do the following:
Forecast your bandwidth requirements: You’ve almost certainly got an idea of how much bandwidth you need to meet your current needs, but what about three to five years from now, or even 10 years out? You’ll need to get the full picture from the C-suite about what’s in the plans in the near and long term so you know just what kind of services you’ll need to provide.
Consider the economics: Whichever solution you choose, costs are involved. You need to have a full understanding of your company’s financial status. Are you expecting significant growth? If you choose to build your own network, will you have the cash to make the initial fiber, hardware and software outlay and to support associated maintenance and upgrades?
Assess your manpower: Does your team have sufficient training to manage a private next-gen network or will you need to train and/or hire? If you’re considering managing your own private network, make sure your team has (or you have the budget to hire) folks with specialized skillsets, and the ability to fund their ongoing training, so you and your network can keep pace with new technology as it comes to market. If you’d rather your team focus on innovation for the business, rather than managing a corporate WAN, you may want to consider a managed service.
Determine how much control you require: Depending on your industry, you may be subject to a host of industry and privacy regulations, or you might require the ability to fine-tune your network to achieve lowest latency and maximum competitive advantage. The more control you require, the more important it may be to manage your own network. Alternatively, you might seek specialized managed services that come with strict SLAs and other assurances.
If you’ve done the required due diligence, and you’ve discovered you’re ready to take the managed services plunge, you’ll want to get a short list of MSPs together and begin the vetting process.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 7 DO YOU DUE DILIGENCE: 37 QUESTIONS TO ASK BEFORE SIGNING A MANAGED SERVICES CONTRACT
Outsourcing management of a specific IT function can be a smart way to get the most value from precious IT resources. But that means putting a critical aspect of your business in the hands of a third party.
There are many managed services firms who want your business, and of course, depending on the type of managed services you are looking to implement, there will be a number of service-specific questions that you’ll want to ask. You need to do your due diligence to make sure you are bringing on a provider who has the right expertise, systems, and processes, and who will be there for the long haul. It may seem like 37 is a lot of questions – and it is – but it will give you the peace of mind that you’ve selected the right provider.
COMPANY BACKGROUND AND EMPLOYEE EXPERIENCE How long have you been in business? 1 Ideally, look for a provider who has been in business for at least three years.
How many employees do you have? How many of those employees are engineers? 2 This will help you gauge the size and stability of the provider, and give some indication that the provider has a large number of technical employees on staff.
What are you technical specialties? What is your complete service catalog? 3 Understand the provider’s specific areas of expertise and its formal offerings vs. simply a “yeah, we can do that” response to your needs.
How do you keep your technicians up to date on industry-leading certifications, tools, processes, etc.? 4 Ensure that the people managing your IT services have the knowledge they need today and that they continue to stay current over time.
Do you have partnerships with and technical certifications from relevant vendors? 5 Ensure that your provider has the appropriate relationships with key vendors and suppliers and that they are up to date on the technologies.
How do you measure customer satisfaction? 6 Providers that measure satisfaction are more likely to take proactive steps to ensure that all their clients are highly satisfied with the service they receive.
Why type of insurance do you have? How much? 7 In the event of a major unforeseen event that requires resources beyond the provider’s current means to rectify, you’ll want to ensure they are adequately insured.
How strong is your business financially? 8 You are entrusting your systems to the provider; be sure they are stable and have longevity.
Can I speak with customer references? 9 This is an important step before choosing any type of provider or vendor.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 8 SERVICE COVERAGE AND GUARANTEES What is your billing model? 10 One of the key benefits of managed services is predictable monthly costs. Preferably look for a provider that charges a fixed fee as opposed to an hourly fee.
What does the contract cover? Does it include proactive services? 11 Never assume – make sure you understand exactly what the engagement covers and what is not covered, and be sure that proactive services are spelled out clearly.
What are your SLAs? Can I see your contracts and SLAs? 12 SLAs are a key component of managed services, and it is important to understand early in the process what the provider offers.
What’s the length of the contract? What are the termination terms? 13 Having a contract lets you lock in prices, so you’ll want to know for how long that term is set. In the event that you decide you want to switch providers, you’ll want to know what the steps are to get out of it.
How will you manage my existing infrastructure? 14 Ensure that the provider can handle and has experience with any legacy systems you currently have in place.
Who will my day-to-day contacts be? Can I meet them? 15 You want to meet the entire team responsible for your operations, and ensure they all have the necessary qualifications.
INFRASTRUCTURE, SYSTEMS, AND PROCESSES What does the transition/migration process look like? 16 Whether the service is currently being managed in-house or by another provider, understand how they will handle the transition, including migration of any data/systems.
Where are your network and security operations located? 17 If they are located off shore, understand what security and business continuity guarantees the provider will make.
Do you use any outsourced monitoring services? 18 If monitoring is a key component of your managed services engagement, ensure that the provider handles it all in-house.
When a technician is dispatched, what’s the process? 19 Ensure that field agents follow standard, repeatable processes – so you know what to expect and your services are delivered consistently.
What are your change control and documentation processes? 20 Ensure that the provider has formal processes in place and that those processes are documented.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 9 SECURITY AND BUSINESS CONTINUITY What network and physical security systems and protocols do you have in place? 21 Verify that the provider’s security meets your organization’s requirements.
How often are the security systems updated? 22 Ensure that the provider has a strong security posture and takes steps to minimize the risk to your systems.
Do you perform periodic test restores on backups? 23 Testing backups is critical to ensure that data is being backed up correctly and that the provider can quickly restore data and systems when needed.
What is your mean time to recovery? 24 Understand how long it would take to recover systems in the event of a problem and the average MTTR.
Do you have a disaster recovery plan? 25 In addition to ensuring the business continuity of your own systems, make sure that the provider has their own fully developed and tested disaster recovery plan in place.
MONITORING AND SUPPORT Do you offer 24x7 monitoring and support? 26 Your systems run 24x7, and you need monitoring and support available whenever the need arises.
Do you staff your help desk or is it outsourced? Do you have a dedicated help desk team? 27 A provider has more control over help desk staff – qualifications, keeping certifications updated, etc. – when they maintain it on site. You also want to ensure that the help desk is staffed with qualified, experienced agents, not field technicians who have to juggle inbound calls with on-site work.
How many people do you have on your help desk? 28 Ensure that the help desk is staffed to support your organization’s needs.
Are on-site calls included? 29 Understand what extra charges there are for on-site visits so you are not caught off guard with unexpected expenses.
How are issues prioritized based on my needs? Do you have a ticketing system in place? 30 Understand how the help desk manages and triages issues – for example, do they map which systems are critical and require higher levels of attention in the event of a problem? A ticketing system that you have access to enables you to see tickets and related information.
Is there a guaranteed response time for issues? 31 A solid support contract will come with SLAs that, in addition to uptime guarantees, will define how long it will take the provider to respond to problems and requests.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 10 REPORTING AND COMPLIANCE Do you provide reports that show me data about/analysis of my services? How often? Can I see a sample? 32 Your provider should give you reports about the services you are paying for. Make sure that if there is specific information you want to see on a particular schedule that you make that clear up front.
How do you support regulatory compliance audits? 33 If your enterprise is subject to specific industry regulations, make sure that your provider can support any reporting and audit requirements you may have.
PLANNING FOR GROWTH AND CHANGE How adaptable are your plans? 34 You shouldn’t have to settle for a one-size-fits-all plan – look for a plan that can be tuned to meet your specific needs and requirements.
What are the charges for extra usage? 35 You may experience spikes in usage and you want to understand the financial implications.
How can the service scale when my business and service needs grow? 36 Ensure the provider can scale with your enterprise and can support your needs as they evolve.
Do you perform quarterly business reviews? Can you build a strategic technology plan for my business? 37 You want your provider to be a knowledgeable partner – one who can provide strategic counsel and help you build a roadmap that will align technology with your business.
ASKING THE RIGHT QUESTIONS UP FRONT WILL SAVE YOU HEADACHES DOWN THE LINE As the saying goes, “an ounce of prevention is worth a pound of cure.” A managed services engagement is a partnership – asking the right questions will help you find right provider for an effective, long-term relationship.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 11 HOW TO MANAGE MANAGED SERVICES
Increasingly, enterprises are outsourcing their IT service spending to MSPs. In fact, the global managed services market is expected to reach over $193 billion by 2019, nearly double its 2014 level of roughly $107 billion, according to recent research from Markets and Markets1.
Cost savings, flexibility and operational efficiencies are just some of the reasons IT is turning to MSPs. However, anytime you outsource critical business resources, you could be potentially putting your organization at risk.
Whether you’re outsourcing all IT functions or just the management of a specific service or application, it is critical to pick the right provider. Here are some tips to help you manage the managed services experience, and mitigate that risk:
• Vet the technical team: An MSP should feel like an extension of your IT organization. Though you may be outsourcing to an MSP to offload the hassle of managing an internal team, the onus is still on you to make sure the people you’ll be working with have the right technical and people skills to ensure a positive working relationship.
• Consider the terms of the agreement: Like any professional services organization, MSPs are looking for recurring revenue. You can often strike a better deal if you settle on a long-term contract vs. a short-term engagement. In any event, you will want to make sure you understand the costs and parameters of the agreement.
• Manage costs: When you first start with an MSP, they will work closely with you to get to know your network so they can offer the right solution, and will also be looking for opportunities to offer you additional services. Get a clear and documented view of which costs are associated with your contracted service, and which services will cost an additional project or installation fee so you’ve got a realistic view of what you’ll be paying for. That way, you can avoid surprises later on.
• Lock in service and support: Like any service agreement, it is critical to establish an SLA – whether that’s a specific uptime guarantee or premium support. It is also critical to establish and document what level of proactive maintenance and consultancy you expect. Get clear on how service issues are communicated and what a minimal response time is. Make sure there is a methodology in place to ensure real-time communication with the MSP on project status updates, trouble tickets and reports on service levels.
THE BOTTOM LINE The decision to work with an MSP is a big one. Make sure to do your homework on any potential providers and establish a solid foundation for a positive working relationship that puts you in the driver’s seat.
1 Managed Services Market by Managed Data Center, Managed Network, Managed Information, Managed Mobility, Managed Infrastructure, Managed Communications, Managed Security – Global Forecast to 2019
THE ENTERPRISE GUIDE TO MANAGED SERVICES 12 FOUR WAYS TO GET THE MOST FROM YOUR MANAGED SERVICES
Partnering with an MSP can deliver a wide range of benefits to your organization. And while the MSP may be managing elements of your IT infrastructure, you still need to manage the relationship with the MSP. In order to get the most value from that relationship, you want to set the MSP up for success. Here are four best practices for maximizing the value of a managed services engagement.
Establish clear roles. Even though you are outsourcing day-to-day management to the 1 MSP, there needs to be a clear understanding of what the hand-off points are and where accountability lies. Spell out exactly who will be performing which functions and define the reporting structure. This will ensure that nothing falls through the cracks and that you and the MSP both know exactly who to go to when questions or issues arise.
Tell them what you need. The MSP has expertise in technology, but you need to help them 2 understand your specific business requirements. Define your goals up front and set metrics to measure what’s important. At the same time, you should establish the baseline – the current level of performance on key parameters – and set goals for improvement. And then review reports on the KPIs together on a regular basis.
Be transparent. In order to be effective, the MSP needs to understand your operations 3 thoroughly from the inside out. Even if the majority of services are provided remotely, you should treat the MSP like an internal department. The more they know about the ins and outs of your organization, the more effective they can be.
Communicate early and often. Make sure you meet regularly with your MSP. This can help 4 you identify and address potential risks before they become critical issues. And make sure that communication is a two-way street. Keep your MSP informed about changes to the organization, processes, technologies, and personnel so they can prepare for anything that could affect service delivery. You should also keep them updated on your strategic plan. The MSP will need adequate time to prepare for any adaptations and they can even lend their expertise to help you shape the technology component of your strategy.
Your MSP isn’t just a vendor – you should treat them as a partner. Establishing a well-defined relationship characterized by open and frequent communications will enable the MSP to deliver you the best possible service and will ensure that your goals are met, or even exceeded.
THE ENTERPRISE GUIDE TO MANAGED SERVICES 13
ABOUT COMCAST BUSINESS
Comcast Business Is Built for Business. Comcast Business can design, build, implement and manage a custom IT solution so you can focus on delivering value to your business. Our innovative and cost saving technologies will change the way you manage technology today and into the future. Our managed services help you keep your enterprise running. Comcast Business provides peace of mind knowing your IT functions are managed in a secure, reliable network, backed by an expert team of service professionals. Learn more about Managed Enterprise Solutions from Comcast Business.
Follow us on social media:
And visit the Comcast Business Community for best practices, technology advice and industry insights to help entrepreneurs, startups, small, medium-sized businesses, and enterprises leverage technology to achieve business success.