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Managed IT Services Definition

Managed IT Services: Its Definition and Other Terms You Need to Know

Information technology has become a part of our daily life. With its application in various fields of studies, it is no longer surprising that even businesses and entrepreneurs found a way to make it a part of their processes. This is also why managed IT services has become a crucial part of various companies. It has made daily operations easier for them. But what is managed IT services’ definition? Here are more details about this practice, along with a few other technical terms that any business owner should become familiar with.


Managed IT Services Definition

Managed IT Services’ Definition

Managed IT services’ definition is the practice of proactively outsourcing a number of IT functions and processes, with the intention of improving various operations and cut costs. Various businesses prefer this in place of the on-demand or break/fix outsourcing model, wherein their chosen service provider takes care of their IT needs on-demand and once the work is done, that is when they get charged.

What is the Managed IT Service Provider’s Definition?

The managed service provider definition is a company that handles a customer’s end-user systems and IT infrastructure remotely. This is typically done on a proactive basis and under a specific subscription model. Nowadays, various businesses consider “cloud service provider” and “managed service provider” to be synonymous, when referring to a provider’s service that is supported by a service level agreement (SLA). Service is then delivered by the provider over the internet.

Apart from providing IT-related solutions, a managed IT service provider can altogether take on a different definition of role. An MSP can also take care of a client’s need for managing and procuring manpower. During such cases, they make use of an online application called vendor management system (VMS) to make the whole process transparent and efficient.

In Managed IT Services, What is the Definition of Service Level Agreement?

Apart from knowing managed IT services definition, an entrepreneur should also be familiar with what a service level agreement is. It is a contract-based arrangement between a managed service provider and its client, wherein it stipulates the expected performance and quality metrics that will govern their business relations.

An SLA can also be related to an MSP’s pricing formula, wherein an MSP may offer a set of SLAs to their customer, with different pricing models provided, depending on what service customer paying a higher fee, depending on the service tier they decide to sign up for.

How Does the Break/Fix Model Compare to Managed IT Services and What is its Definition?

The break/fix method is a form of on-demand IT service provision to customers. A customer usually contacts a managed IT services provider and gives them all the details about what specific service they need. The definition of pricing can vary, depending on what services a customer decide to get. Most break/fix services a priced based on the time, material and service type. Generally, it’s priced on a per hour service, except for some discrete services, such as virus removal, which may come at a flat rate, instead of a per-hour basis.

Compared with managed services, the break/fix model is only provided whenever a customer requests for it. Whereas the managed services are proactively provided, on a regular basis, and depending on the specific set of services a customer decides to sign up for. MSPs usually work on preventing potential IT problems which may disrupt the flow of regular business operations. And this is where service-level agreement (SLA) contracts come into play. It provides customers a guarantee that the MSP will take care of monitoring and managing the customer’s IT systems, based on the agreed upon subscription price.

The Importance of Knowing Managed IT Services and Its Definition

When it comes to managed IT services, there are many terms and definitions that business owners and entrepreneurs should make themselves familiar with. It is essential that you get to learn these terms so that you can make a well-informed decision as to how you and your business can benefit from getting managed IT services. These definitions can also give you an idea as to what you can expect from managed service providers, their pricing models and the services that they are able to handle.

Clearly, working with a managed service provider can help make your business operations more efficient and effective. Apart from knowing various terms in the managed services trade, you should also get acquainted with some of the most professional and reliable managed service providers in the market. Need to learn more about managed IT services and its definition? Contact Network Medics today and get the right information firsthand from the right people.

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