The Cost Of A Data Breach Cost Vs. The Cost Of A Managed IT Services Contract
If you want to figure out the real value of managed IT services, you need to think about the potential they have to save you money. Managed IT services are all about preventing problems, some of which can be very expensive. Understanding the value of managed service starts with understanding what they are…
What Exactly Are Managed IT Services?
If you want to understand managed IT services and what makes them worthwhile, you just have to understand how they’re different than the way IT support used to work.
Not too long ago, all IT support was essentially reactive. These services were either called “hourly” support, or maybe “break/fix”, but that’s a bit of an industry term.
In either case, the way these services worked was that you brought in your hardware, or called a technician to visit you on site after something went wrong. Even in the best of cases, you still had to deal with the downtime that occurred while you waited for your broken IT to get fixed.
Managed IT services address the core issue – instead of waiting for something to go wrong and then stepping in to correct it, an IT company that provides managed IT services takes on all the responsibilities of a traditional in-house IT department. This means working to prevent issues from happening in the first place.
What Do Managed IT Services Cost?
Actual pricing ranges vary from one market to another – whether you’re in a major metropolitan area, or a smaller community will affect the price. But to give you a brief overview of what pricing ranges look like; here’s the breakdown:
- Flat Based range: Monthly, quarterly, or annual fee depending on needs
- Per-User range: $125–$300 per month
- Per-Device range: $5–$100 per month
Think that’s expensive? Wait until you hear what a data breach will cost you…
Managed IT Services Save You From The Cost Of A Data Breach
The Ponemon Institute’s Annual “Cost of a Data Breach” report states that the average cost of a data breach is $3.9 million – up 1.5% from the year prior. According to the report, companies spend an average of $150 per record lost in a data breach.
Managed IT Services Save You From The Cost Of Downtime
Downtime is bad for business. Whether you agree or not, it’s a fact – just a couple years ago, small businesses with up to 50 million in annual revenue reported that just a single hour of downtime cost them $8,600.
The main cost of downtime is not the fix itself, it’s the halt in your business’ productivity. If an IT-related or natural disaster occurs and takes critical systems offline, employees will be unable to complete their tasks, yet your normal business expenses will carry on.
During that time, you incur all the expenses of running a business without the revenue you would usually generate. Even if downtime does not grind everything to a halt, some of your staff will have to divert themselves from their normal work to mitigate the problem – again reducing productivity. Furthermore, while your systems are down, you can’t deliver services or sell products to current and potential new clients.
Why Are Managed IT Services Worth The Money?
The fact is that downtime and data breaches are often the results of poorly supported IT. The best way to approach downtime prevention is proactively – you need to keep an eye out for system issues that can spiral into total stoppages. You need to implement backup technologies and best practices to prevent outages. You need to enhance your cybersecurity to protect against cybercrime.
Unfortunately, that’s a lot for you to handle on your own, especially when you have other work to see to. That’s why a managed IT services company like Servcom USA can be so helpful. They’ll provide 24/7 active monitoring of your systems, business continuity best practices and cybersecurity services that will keep costly downtime at a minimum.
In the end, managed IT services are valuable not because they fix your IT problems, but rather, stop the problems from occurring in the first place. A combination of expertise, experience and attentive support (like that offered by Servcom USA) keeps your IT systems in optimal condition.
Like this article? Check out the following blogs to learn more: