What Does “Enterprise IT Services” Actually Mean?
One of the decisions large businesses face is how to manage their information technology assets. They can choose to build an in-house IT team to handle their day-to-day, long-term or sudden needs, or they can partner with a managed service provider (MSP) for enterprise IT services.
According to statistics, the managed services market, on a global scale, is anticipated to reach $372.6 billion by 2028. This is up from 275.5 billion in 2023, which demonstrates a significant increase. If these figures and percentage of growth are any indication, it suggests corporations have been making a substantial shift away from maintaining a traditional in-house IT staff and opting to go with enterprise IT services instead.
Even though a corporate entity might have the resources to hire and retain internal IT teams, they could gain many tangible and intangible benefits by taking the MSP route. Let’s take a closer look at the types of services you can receive and how your company can benefit from them.
What are enterprise IT services, exactly?
Enterprise IT services are a combination of software, hardware, strategy and support services that can be customized to meet a corporation’s specific needs. There is no cookie-cutter solution, enterprises can receive customized solutions. An experienced and knowledgeable MSP will work with a company’s decision-makers to strategize, develop and integrate the right technology solutions.
The technological needs of a large corporation are extremely different from a small shop or even a medium-sized business. Smaller companies typically base purchasing decisions on cost and speed, basically buying on an as-needed basis without requiring much planning.
Enterprises cannot function this way. IT purchases must align with the company’s overall business strategy, along with having the capacity to support organizational collaboration and communication. An enterprise has numerous additional factors when it comes to software and hardware to consider. Technological factors that impact the entire organization, such as:
- Reliability
- Manageability
- Compatibility
- Repairability
- Level of support
- Lifecycle management
- Number of licenses needed
- Availability (e.g., sufficient quantities available for all users)
Making IT decisions for large businesses is very different from smaller businesses, since there are numerous departments, locations and other variables and boundaries that non-enterprise level companies do not have to think about.
In a nutshell, cost is not necessarily the primary driver of decision-making for enterprise businesses, since any IT changes can have a dramatic impact, especially if sufficient planning doesn’t take place. An MSP instinctively knows how to address relevant IT issues and will work with an enterprise to eliminate problematic issues that often come with technology upgrades, installations or other modifications.
Cloud computing solutions
When you implement a cloud computing solution, you gain the ability to store, access and share data. Essentially, this takes place through an external, online platform rather than solely utilizing local storage and networks. The capability the cloud offers is empowering for your business since it enables your staff to access programs, files and documents through a secure platform from any location, which is helpful since, nowadays, people work from a variety of remote locations.
Cloud computing solutions provided by an MSP go a long way to simplify and bolster your collaborative abilities, along with ensuring everyone with an internet connection can access what they need when they need. As a result, you can enjoy significant cost savings, stronger levels of productivity, and, ultimately, healthier levels of profitability.
Implementing a cloud computing solution also means you have a built-in disaster recovery and business continuity plan since your important data resources are automatically backed up in the cloud. Even better, you can customize an enterprise cloud computing solution to best meet your company’s needs.
Network and data security services
Cybersecurity is a task no business can afford to neglect. Unlike years past when decision-makers viewed network and data security protocols as an afterthought, the cost of even just one cybersecurity incident is simply too high. In 2023, the average cost of a data breach on a global scale reached new heights – a whopping $4.45 million. This is a 2.3% increase over 2022 and a staggering 15.3% since 2020.
Working with a managed services provider for enterprise-level cybersecurity solutions is also particularly useful in an age where maintaining and securing internal servers is both time-consuming and costly. With enterprise IT services, a provider proactively monitors your systems and networks to prevent a cybersecurity incident. If one were to happen, it would quickly cripple your business. If not prepared to manage this vital task in-house, is it worth the risk?
Compliance
Enterprises also need to heavily consider the compliance factor. Regulatory and industry requirements are only continuously getting more stringent, which means enterprises need to routinely invest in security and best data handling practices to ensure they’re up-to-date and compliant. Your MSP partner will check to determine any compliance needs your company is required to meet and help you to integrate the right solutions, so you can avoid hefty penalties and fines.
Enterprise resource planning (ERP) systems
Investing in the right ERP solution to run day-to-day operations is a vital decision for modern businesses to make. Most will agree integrating an ERP system is essential. However, choosing and maintaining the right one is another issue.
It can be difficult to assess which system will best meet your needs to help promote higher productivity and better insights, along with eliminating information silos, decreasing risks and obtaining improved reporting with real-time results.
Your MSP partner will work with you to assess your needs and help you identify and/or develop a system that will meet your corporation’s specific needs.
Consulting and advisory services
Speaking of identifying and developing solutions, an MSP can play a crucial role by offering expert consulting and advisory services. You won’t have to play any internal guesswork when determining how to implement technological solutions because your partner will be with you every step of the way, from conception to analysis to implementation. This service comes with the package you purchase, so you don’t have to worry about excess fees for separately paying an expert consultant, it’s already all configured into your monthly price.
In addition to consulting and advisory needs, you’ll also have a team of professionals at your fingertips 24/7. This is beneficial when it comes to launching new systems, upgrading old ones, transitioning from legacy systems or for everyday help desk needs. This goes a long way in ensuring you have little disruption and a smooth transition with any new infrastructure decisions your company makes.
Specialized knowledge
Hiring, onboarding, training and retaining top talent in the IT field is costly. For many companies, keeping up with the level of turnover or trying to fill vacancies is a challenge. Even if they can successfully attract the eye of good potential IT hires, it’s usually very expensive to maintain a staff with the specialized knowledge you need.
On the other hand, working with an MSP gives you full access to all the professional knowledge you need without having to support the salaries, benefits and other overhead that comes with running an in-house IT department.
Infrastructure management
Managing diverse components, including but not limited to servers, firewalls, routers, networks, storage and cybersecurity, is a vital task an enterprise must consider. To function at the high level they need to, large businesses cannot afford disruptions or downtime. Infrastructure needs to have adequate management to keep it running smoothly around the clock.
Just one data breach or cybersecurity attack can result in hundreds of thousands to millions of dollars lost. This doesn’t factor in other intangible costs, such as brand reputation damage, operational impairment or impact on future profits, to name a few.
An MSP also provides you with support for infrastructure management to help optimize resource allocation, proactive maintenance, capacity planning and performance optimization, along with hardware and software updates.
Scalability and innovation
One of the benefits you can enjoy as an MSP customer is the scalability and innovation that comes with your technology. Unlike managing equipment, networks and other technological-related tasks in-house where you are locked into your purchase, this is not the case with an MSP. You have a high level of flexibility.
Once you invest in a fee-based subscription, you’ll have access to the latest technology along with the ability to make changes. Have a fantastic idea to boost your competitive advantage? You can feel free to innovate and adapt your technology, not have to put those ideas indefinitely on hold until you can afford to buy or build new tech.
Whether you need to upgrade, downgrade or expand, you’ll enjoy the ability to do so with your MSP plan. Many enterprises have agile growth patterns, and MSPs empower them to adjust their technology needs on their own terms, not dictated by limited budget dollars.
Modern enterprises face many challenges
Deciding between enterprise IT services and in-house IT is a significant challenge today’s businesses face. While there are pros and cons to each course of action, many find the fixed monthly rates MSPs offer to be highly affordable, convenient and effective when contrasted with managing and financially supporting in-house IT departments. The predictability of expenses is also very appealing.
When maintaining an in-house infrastructure, you also must consider disaster planning and business continuity and invest in plans to make sure you never lose your data assets. With a managed service provider, your enterprise company can rely upon IT system redundancies to provide assurance your data will never be lost, even if a natural disaster, fire or cybersecurity incident occurs.
When factoring in other advantages enterprise IT services offer, such as scalability, cost-effectiveness, predictability of costs, specialized knowledge, professional consults, around-the-clock support and other services received, a growing number of enterprises are choosing to go the MSP route. This frees them from the burdens associated with absorbing the high costs of maintaining an in-house IT department while keeping their technology assets current and relevant.
Is an MSP the Right Option?
If your company is spending any time worrying about technology which takes away from expansion or otherwise focusing on your core competencies, now might be the time to consult with the experts. Here are a few good questions to ask yourself to determine whether your in-house staff is prepared to handle all these issues:
- Can your budget afford to hire full-time IT staff to manage your technology?
- Does your current staff have the necessary expertise to strategically plan technology to keep the business competitive?
- Is your enterprise reasonably able to handle cybersecurity and compliance to reduce risks and avoid violating any requirements?
- Does the company have the budget, time and ability to update legacy or obsolete equipment to keep it current?
- Are your current technologies in use scalable to adapt as necessary?
If you answer “no” to any of these questions, chances are your company could benefit from some level of MSP assistance.
Let Red River Help You Shape the Future of Your Enterprise
The modern technological landscape is constantly evolving, and it’s not as easy to keep up with the changes as it perhaps once was several years ago. Investments quickly become obsolete, and it is expensive to keep up with modernizations to maintain a competitive advantage in any given industry.
Even if you’ve got a handle on some aspects of your tech assets, you may have some gaps we can help find solutions. The professional staff at Red River possess the expertise and knowledge enterprise companies seek when navigating the complexities of modern IT environments. To schedule a consultation to discuss your company’s needs and how we can fill any gaps or requirements you have, contact Red River today.
