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Data links managed IT services, cost reductions

By | November 1, 2011, 10:57am PDT

Summary: New research from CompTIA suggests that almost half of businesses were able to cut IT expenses at least 25 percent by shifting some to some managed services relationships.

First, a definition, since I know that those of us in the high-tech industry tend to throw around phrases and acronyms with little regard for what they actually mean. I suppose that works to marketers’ messaging because where there is mystery, there is more opportunity for a conversation. But that doesn’t really help you or your company.

In any event, I’ve heard the term “managed services” tossed around willy-nilly for longer than I care to admit. Many people tend to equate this phrase with remote network management, but in truth it carries much broader meanings in today’s IT economy. In my mind, the term managed services as they pertain to IT infrastructure describes relationships that are ongoing and predictable in the sense that you know exactly what to expect as far as support, updates and technology management goes.

With that as a backdrop, I just got through considering some new research about managed services conducted by industry association CompTIA. The data, which reflects interviews with 400 IT and business professionals conducted in June 2011, suggests that 46 percent of companies have cut their technology expenses by 25 percent or more by moving to managed services for some or all of their IT infrastructure needs. Approximately 13 percent of those companies reported that they have cut at least 50 percent out of their IT expenses.

That doesn’t mean that money is just being cut forever, mind you. It seems that it is being diverted elsewhere.

More than half of the survey respondents indicated that one of the big reasons that they are turning to managed service providers for things such as security (antivirus or firewalls), web hosting, network management or help-desk support is that it will free up their internal IT staff for more strategic projects.

If you would like your team to spend more time focused on technology projects that could help generate revenue, it might be time to consider a managed service relationship to help automate some of the tasks that are bogging it down.

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Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues.

Disclosure

Heather Clancy

Writing publicly about what the high-tech industry is actually doing to help itself and the world get greener or more sustainable is one way I figure I can contribute more meaningfully to said effort. I am also a big OMG-kind-of-fan of smart leadership, which is why the goodly folks who publish this blog let me go on about this topic and why I am always on the hunt for forward-looking business management ideas.

My daily writing is focused on looking for topics for my blogs, GreenTech Pastures and Business Brains. I also write often about emerging technology trends such as mobile computing, unified communications and cloud computing. Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where a speaking engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and the topics that I'm covering in my blog.

Biography

Heather Clancy

Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues. Her articles have appeared in Entrepreneur, Fortune Small Business, The International Herald Tribune and The New York Times. In a past corporate life, Heather was editor of Computer Reseller News, where she was a featured speaker about everything from software as a service to IT security to mobile computing.

Heather started her journalism life as a business writer with United Press International in New York. She holds a B.A. in English literature from McGill University in Montreal, Quebec, and has a thing for Lewis Carroll.

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