Welcome to SaaS thoughts

Whether you call it Software as a Service (SaaS), Managed Service Provider (MSP) or On-Demand Services, your organization uses the service running “in the cloud”. This blog will discuss these services, their benefits, drawbacks and operations. Are we biased? Yes. We believe that some services make sense for most organizations. Email security is one of those. However as Mark Twain said, “All generalizations are false, even this one.” Each Tuesday we will post information and questions about Software as a Service. Occasionally, we will have a "Guest Post" from either a consultant or vendor posting her/his thoughts on Managed Services generally as well as some degree of specificity based on her/his unique perspective. We encourage your insights, comments and feedback. Welcome.

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The Benefits of Using a Managed Service – Further Thoughts


So what are the benefits of using a managed service for traditionally in-house IT responsibilities like email filtering , web filtering , or email archiving ? First, let’s think about the reasons for considering a managed service. In today’s increasingly competitive global marketplace, IT operational budgets, as well as resources, are stretched thin. The combined pressures of preventative maintenance and upkeep, as well as an almost constant stream of security threats, have created a huge demand for relief. Managed services enable organizations to find a balance between performance management and security resources, providing blended functionality and proactive response resolution for these services.

Managed services offer flexible, subscription-based business models and specific functionality inherent in existing solutions. IT capital, in today’s global enterprise, is over-extended. IT departments are forced to deal with such influences such as compliance requirements like HIPAA, GLBA and SOX, as well as proactive identification of potential system threats. Using managed services allows for IT resources to be freed up. This allows companies to re-align their IT to focus on business strengths and logistics management.

Additional benefits of using managed services include:

  • Peace of mind—managed service customers can monitor their networks on a 24-hour, seven day-a-week basis proactively
  • Vendor consolidation—with managed services, there is one point of contact for delivery and all network issues as there is a single supplier instead of multiple vendors
  • Service level agreements (SLAs)—assuring service delivery
  • Visibility to cost—managed services offer fixed price contracts, providing known costs for management
  • IT logistics relief—managed services can help IT departments to avoid the costs of building the company’s own management and reporting systems
  • Reduction in cost—managed services can reduce the costs for recruiting specialized IT staff

Managed services provides an option to organizations looking for many of the traditional outsourcing’s benefits—such as labor and maintenance savings—but without the loss of control over core network functions. There has been long growing confidence in managed services’ security, reliability and effectiveness, in addition to the promise of accelerated deployment and potential cost savings.

Bottom line—the proof is in the spending. Industry analysts have projected that worldwide security software support services spending will climb to approximately to $2.13 billion in 2010. With those kinds of numbers, as well as the potential savings to an organization, the benefits of using managed services is great indeed.

Next Post : A review of Nicholas Carr’s The Big Switch: Rewiring the World, from Edison to Google

From the inside flap: His last book shook the high-tech industry to its foundations. Now Nicholas Carr is back with The Big Switch , a sweeping and often disturbing look at how a new computer revolution is reshaping business, society, and culture.

What do you think? Did we miss a “Con” What are the benefits? What are the drawbacks? What’s your experience with SaaS? Where does SaaS make sense for you?

How likely is your organziation to use a Managed Service?

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Posted on : Jun 03 2008
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Posted under Managed Services, SaaS |


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