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Look to Fixed-Cost, Managed IT Services to Deal with Smaller Technology Budgets

Guest post by: Peter Marsack

Article Overview: The managed services model is becoming a preferred option for small-to-midsized businesses looking to manage IT costs as it delivers predictable, budgeted, fixed-budget services that were once only offered on a variable time and material basis.

Look to Fixed-Cost, Managed IT Services to Deal with Smaller Technology Budgets

Today's financial environment has caused most small businesses to find how to operate in a more lean and efficient model. Successful companies in today's market have found that the only way to maintain a healthy margin or keep profitable is to increase efficiency and lower costs versus increasing prices. Efficiency in business can involve many business aspects from process to spending.

Reviewing your information technology costs is always a wise course of action. Eliminating extra expenses or finding lower cost service plans for phone or Internet are great starting points, but typically there is only so much a business can do here to reduce those costs. That's why one of the best ways to spend less is to increase the productivity or efficiency of your workforce.

The technology that powers your business should be delivering one of 3 factors at the very least - increasing revenue, increasing efficiency, or lowering cost. If there are elements of your technology solution that are not rendering one of these three elements then you should evaluate how necessary those elements are. Most probably, you are wasting money. What complicates matters even more is the reality that the age of your technology solution doesn't care how hard economic times are or how much you need to "delay" spending on information technology because of a downturn in business. Purchasing computers, servers, and networks can be an intimidating process, but when not properly planned, you might as well throw money down the drain.

The managed services model is becoming a preferred option for small businesses looking to manage IT costs as it delivers predictable, budgeted, fixed-budget services that were once only offered on a variable time and material basis. Managed IT services can give a business every aspect of the IT solution and management process without the headaches of unexpected costs and can enable a business to maintain control over IT spending.

Normally a business has to deal with IT-related expenses such as:

i. Support of the staff and business for technology problems that happen

ii. New and upgraded hardware

iii. Software and licensing

iv. Peripherals such as printers and scanners

v. Phone systems

vi. Service contracts with providers such as your phone or Internet provider

vii. Backup and disaster recovery

viii. Compliancy issues

Every one of these can attribute to a rising and variable cost in the business which, when not managed properly, can lead to a lot of wasted spending. When you look at an example such as a managed services program, all of these separate line items are reduced to one set, monthly investment to the business without limitations. Since there are no limits, it is incumbent upon the managed service provider (MSP) to give the business a clean running operation and reduce the amount of problems that can surface. There are no hourly rates, no trip charges, and no surprise charges.

Let's assume it is time for your business to upgrade its entire network. As the decision maker or person responsible taking the lead on this initiative, you could certainly get most computer technology organizations to provide a quote for a this project. Most probably this will result in a significant project and large capital expense without even including any technical assistance after the fact.

How does a managed IT service provider handle this in a different way? With managed IT, one modest fixed monthly investment that includes all of your hardware and can be written off at the end of the year as an operational expense if you so choose. The very best part? This includes all support, training, and monitoring after the fact - therefore, keeping your staff efficient and trained with all the most recent technology and there is help available if questions or problems crop up.

Managed IT services gives organizations fixed technology costs, increased efficiency and a new technology environment. Flat-rate IT services are a simple yet powerful way to evolve the backbone of your firm into a lean and efficient machine.

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Article Tags: budgeting, budgets, computers, IT, managed IT, services, technology
Referred by: http://www.clarityqst.com



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