Application Managed Services: A Key Component of Modern Business IT

Businesses of all sizes are turning to third parties to help manage their technology requirements. Whether they need a full-service IT provider or are looking to bolster their cybersecurity posture, application managed services (AMS) are becoming quite popular.

The numbers for the increased use of AMS speak volumes. According to statistics, in 2022 the AMS market size was valued at $31.15 billion and is expected to grow to almost $112 billion by 2029. This strongly suggests just how much AMS integration is considered a useful service, driving this market to rapidly become a key component of modern business IT.

The goal of an AMS provider is to help its clients gain access to upgrades, optimizations, application enhancements and other valuable components relating to software. In this article, we’ll talk about the growing importance of outsourcing application management for sustained business success, along with what AMS is, its benefits and why this type of service is increasingly becoming indispensable.

What Is Application Managed Services (AMS)?

AMS is a service offered to businesses by a third-party partner to provide them with software and application support. This alleviates companies from needing to maintain a robust staff of professional staff in-house to install, maintain, upgrade and manage critical software systems. Tasks your partner will provide include but are not limited to:

• Monitoring and managing applications for in-house and cloud-based solutions
• Managing all infrastructure components to ensure they operate correctly
• Logging all IT solutions being used and providing support for each one
• Identifying new applications for businesses to consider
• Installing, configuring and testing potential software solutions
• Scheduling software updates
• Performing upgrades, reinstallations and other tasks as needed
• Sending out alerts if applications suffer critical problems
• Providing 24/7 support to minimize downtime

Essentially, your AMS partner will keep the applications you use optimized and running smoothly. They’ll step in and run systems the same as you would do in-house but without the need to maintain staff who are knowledgeable and up to date on application issues.

Benefits of Application Managed Services (AMS)

Investing in application managed services offers many businesses substantial benefits, empowering them to gain a competitive advantage in their respective industries. The top advantages companies enjoy from utilizing AMS include the following factors.

Allows Optimal Application Performance

Many companies, from enterprise-level organizations to small businesses, often need to invest time and money into ensuring their applications continuously run smoothly. Hiccups in systems are a bad optic for any brand and, by working with an AMS partner, companies enjoy achieving peak application performance since their partner will proactively monitor applications and provide timely updates.

You’ll have no more worries about outdated applications opening up vulnerabilities or causing disruptions that interfere with your operations. Instead, your company can leverage the expertise of your partner who will ensure you have around-the-clock optimal application performance.

Provides Access to Expertise

Working with an AMS provider gives businesses full access to specialized skills and expertise they otherwise might not have available in-house. It takes time, money and other resources to onboard and retain skilled employees to consistently handle application management. Not to mention the investment in continuing education to keep up with consistent changes as technology develops and evolves.

With a reliable partner at the helm of this area of your IT structure, you can rest assured you’ll have a team of experts ready to deal with any issue and respond to any inquiries or problems 24/7 every day of the year. You won’t have to worry about keeping up to date with technological changes – your partner will have this 100% covered.

Results in Minimal Downtime

Time is money and an unplanned outage can cost businesses a staggering $100,000 to $1 million per hour, according to some statistics. The longer downtime persists, the more devastating the effects it brings in terms of lost productivity, revenue and harm to a company’s brand.

When you work with a trustworthy, reliable and experienced AMS provider, you’ll find that, since working with applications is their sole responsibility, they’ll be equipped to provide consistent monitoring and be able to minimize downtime.

Offers Cost-Effectiveness

Outsourcing application management is cost-effective as it is a terrific way to reduce operational costs associated with IT. This is money a business can put back into their budgets to put toward other expenses and investments. Hiring full-time employees requires salaries, benefit packages and training. When employee turnover occurs, this further adds to the costs.

When you outsource application management, your company can rest easily knowing its application management is always under control without worries about employees leaving and dealing with the recruiting and hiring processes.

As a result, your company can enjoy reduced infrastructure costs and count on predictable expenses. You’re simply paying for the services you need, which includes expertise and equipment, giving you access to current technology.

Ability to Focus on Core Functions

Leveraging AMS enables businesses to relieve themselves of the burden of needing to manage application-related tasks in-house. This frees up time for staff members to focus on the company’s core competencies, helping them to develop strategic planning and keep up with industry trends to help drive innovation and growth. They also no longer need to spend valuable hours fixing IT issues or trying to minimize downtime.

Provides Scalability

AMS allows businesses to scale their applications seamlessly in response to changing demands, which is a game-changer for most companies. Not having to consistently research and invest in new IT solutions is very cost-effective.

When investing in an AMS solution, you only pay for services your company currently requires. As your organization’s needs fluctuate, whether you need fewer or more services, your AMS partner can simply adjust your applications according to your current circumstances.

Enhances Overall Efficiency

Since an AMS is not a one-size-fits-all solution, businesses of any size can enjoy its advantages. Large enterprise-size companies will likely have very different needs than an SMB. That’s the beauty of application managed services. Any company can use it and have the freedom to only integrate the specific IT applications they need.

Why AMS is Increasingly Becoming Indispensable

Over the last two decades, the role of IT in business has steadily and rapidly grown. How applications were developed, installed and utilized even just 10 years ago has dramatically changed. As we steadily progress toward the third decade of the 21^st century, it’s clear third-party IT partners will play a primary role going forward.

As a result, contemporary business IT solutions, such as AMS, will be at the forefront. The landscape of IT services will continue to evolve and grow. Some of the ways this service is making itself indispensable as a preferred outsourcing investment include its ability to offer, along with the aforementioned benefits, the following key components:

• Evaluation of legacy technology
• Optimization of the performance of applications
• Identification of new applications to leverage
• Updates, including upgrades and patch management
• Improved cybersecurity and protection against breaches, losses or corrupted data
• Compliance with industry and governmental regulations
• Ongoing timely technical support
• Business continuity

While there is some overlap with cloud-based services, AMS differs because it provides management, support and maintenance, regardless of where applications are hosted.

How to Choose an AMS Provider

Choosing an AMS provider isn’t much different than choosing other types of services you purchase from vendors. You want to identify a partner who understands your industry and offers a business model that aligns with your strategy and goals. Speak to AMS providers about the following when exploring your options.

• Pricing packages (i.e., specific number of hours vs. fixed fee) in your service level agreement (SLA)
• Confirm your contract would allow for the level of scalability you may need
• Ask who will be managing your account and if a specific individual will serve as your point of contact
• Level of expertise and experience in your industry
• Track record of security and compliance

The best way to determine if an AMS provider is a good fit for your company is to have ongoing conversations. Reliable and trustworthy companies will answer all of your questions and offer as much information as you need to make an educated decision.

Summary

Decisions regarding your IT needs are something you never want to make lightly. After all, technology can be cost-effective or cost-prohibitive depending upon how it is utilized. One of the most significant benefits of outsourcing any or all IT components is the fact you do not have to maintain a dedicated staff and budget to keep your technology up to date. Your partner can do all the heavy lifting for a predictable and consistent fee.

Ready to Begin Exploring Your AMS Options? Red River is Here to Help

One of the most predictable trends in the modern business landscape is that technology is never going to stay stagnant. Companies can no longer make an investment and expect it to last a multitude of years. Progress moves too quickly and for businesses to remain competitive, they need to keep up with technological changes and updates.

Working with a skilled and experienced AMS provider can help you maintain a strong position in your industry. When you work with Red River’s professional staff, you’ll never have to worry about your applications becoming obsolete, unstable or unreliable. Even if you’ve got a handle on some aspects of your applications, we can help you to identify gaps or better solutions.

To schedule a consultation to discuss your company’s application needs and to learn ways an AMS solution can bolster your business, contact Red River today. Our knowledgeable team will evaluate your current applications and suggest ways you can improve. We are a technology transformation company and make it our mission to help businesses reimagine the possibilities where tech is concerned. We look forward to talking with you.