The Move to Managed: Why Enterprises Want to Be Less Involved with IT

Mar 07, 2019 Jeff Slapp - Vice President, Cloud and Managed Services

pic-(1).jpgThe digital age has brought countless innovations, but only recently have these advancements truly taken root as ways to “one up” the competition. Every day, businesses are implementing new and creative tech to boost the bottom line. For example, last year, Nike opened a flagship store in New York City called “Nike House of Innovation 000” that allows customers to reserve shoes online that are then stored in a locker with the person’s name on it, which can be unlocked with his or her smartphone. Sephora launched its “Beauty Hub,” which offers a virtual makeover to test how makeup will look without applying any products. 

While new technologies present powerful opportunities for growth, they can also introduce challenges and a difficult-to-manage pace of change. The proliferation of mobile and cloud-based technologies, while delivering endless possibilities, has also introduced a wide array of different devices, platforms and apps that IT departments now must manage, maintain and secure.

Passively waiting for issues to arise is no longer acceptable. With the increased use of digital records, automation, eCommerce and more, outages can have a devastating effect on an organization. The loss of revenue and productivity can be disastrous. This makes the need for security and support to prevent system failure and to identify potential issues before they happen absolutely critical.  

In addition, many organizations are moving their data centers to the cloud because their infrastructure can’t keep up with evolving digital requirements. With data subject to compliance policies such as GDPR, HIPAA and PCI, the public cloud is not always the ideal environment, but many companies lack the ability to support these regulatory standards in their own data centers.

Therefore, hybrid IT environments that handle cloud, colocation and on-premise workloads have become more attractive than ever. Because of compliance, data security and delivery reasons, hybrid infrastructure adoption will continue to rise. Even with all the benefits they provide, though, hybrid IT setups aren’t without their fair share of challenges. For one, the influx of new technologies has created a shortage of people with the skills and knowledge to effectively leverage the latest systems. Plus, IT managers are simply short on time as their jobs become more and more complex.

That brings us to a major trend we’re seeing in enterprise IT today. With most IT departments stretched thin, outsourcing back-end functions and complex technologies has become necessary in order for them to focus their in-house technology experts on projects that boost profitability, customer service and innovation. Organizations want flexibility and agility, but not the hassle or high costs associated with maintaining on-premise solutions.

In the early 2000s, enterprise executives were saying they didn’t want to be in the data center business anymore. Now, it’s going a step further, with those same companies moving away from IT management completely and toward streamlined, cost-effective managed solutions. With so many moving parts in IT, it’s simply become too much of a burden, and enterprises understandably prefer to focus on their own profitability and customer service. The bottom line is, it’s becoming increasingly common for SMEs to want to simply put the key in and hear the engine start. But just because they aren’t concerned with the mechanical details doesn’t mean they won’t be upset if the engine doesn’t turn over!

This trend has been the driver behind two of 365’s latest product suite launches. Our new Enterprise Managed Services product simplifies the entire process of acquiring, installing, supporting and managing IT-based solutions - allowing businesses to consolidate the associated costs into a single fixed monthly fee.

The other new product suite is our cyber security solutions, which allow businesses to consolidate and simplify the cost of acquiring, deploying and supporting critical cyber security management functions while providing rapid incident response when security events occur. The fundamental goal of both of these products is to free customers from the burden of day-to-day IT management so that they can focus on what matters: the success of their business.