Understanding the Different Types of Managed Services Models for Business

May 16, 2023

Managed services are a popular way for businesses to outsource their IT needs and focus on their core operations. However, not all managed services are created equal. There are different models available, each with its set of features and benefits. In this guide, we’ll explore the different types of managed services models to help you choose the right one for your business.

Choosing a pricing model

The managed services model is a flexible pricing structure that allows MSPs to tailor their services to meet the specific needs of their clients. By understanding their offerings and the needs of potential customers, a managed service provider can create a pricing model that is both competitive and profitable. Ultimately, the success of the managed services model depends on the ability of the service provider to deliver high-quality services at a reasonable cost.

When it comes to managed services, pricing models can vary depending on the needs of the company and its customers. For example, a company new to the market may want to start with a limited monitoring offering, making the monitoring-only pricing model a good fit. On the other hand, a service provider catering to customers with multiple devices per employee may opt for a per-user pricing approach. And for MSPs looking to attract new customers with a basic offering while also building in upsell potential, the tiered-pricing model may be the way to go. Ultimately, the right pricing model will depend on the specific needs and goals of the business.

The managed services model allows for flexibility in pricing, as different approaches can be combined to meet the needs of both the service provider and the client. For instance, a provider may choose to offer a flat rate for most of their services, while also providing a few additional services on an as-needed basis. This allows for a customized approach that can be tailored to the specific needs of each client.

The managed services model is a business approach where a company outsources certain IT functions to a third-party provider. This allows the company to focus on its core competencies while the provider takes care of tasks such as network monitoring, data backup, and security. Downtown Managed Services is a consulting company that helps businesses implement and optimize their managed services strategies.

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Break-Fix Model

The break-fix model is a reactive approach to IT support. In this model, the managed service provider (MSP) is only called upon when something breaks or malfunctions. The MSP will then resolve the issue and bill the client for the time and materials used. This model is best suited for small businesses with limited IT needs and budgets, as it allows them to pay only for the services they use. However, it can lead to unexpected costs and downtime if issues are not addressed in a timely manner.

The break-fix model is often seen as a short-term solution, as it does not provide proactive maintenance or monitoring of IT systems. This means that potential issues may go unnoticed until they become major problems, leading to longer downtime and higher costs. Additionally, the break-fix model does not incentivize the managed service provider to prevent issues from occurring in the first place, as they only make money when something breaks. As such, many businesses are moving towards more proactive managed services models, such as the flat-rate or co-managed models, which provide ongoing support and monitoring to prevent issues before they occur.

Reactive Model

The reactive model, also known as the break-fix model, is a type of managed services model where the MSP is only called upon when something breaks or malfunctions. This model is best suited for small businesses with limited IT needs and budgets, as it allows them to pay only for the services they use. However, it can lead to unexpected costs and downtime if issues are not addressed in a timely manner.

Under the reactive model, the MSP is not responsible for proactive maintenance or monitoring of the client’s IT systems. Instead, they are only called upon when a problem arises. This can lead to a “firefighting” approach, where the managed service provider is constantly putting out fires rather than preventing them. Additionally, since the client is only paying for services as they are needed, unexpected costs can arise if a major issue occurs. However, for small businesses with limited IT needs and budgets, the reactive model can be a cost-effective solution.

Proactive Model

The proactive model is a type of managed services model where the MSP takes a more proactive approach to IT management. This means that they monitor and maintain the client’s IT infrastructure on an ongoing basis, rather than just responding to issues as they arise. This model is best suited for businesses with more complex IT needs and a higher tolerance for IT-related downtime. The proactive model can help prevent issues before they occur, leading to increased uptime and productivity for the client.

In the proactive model, the MSP will typically perform regular maintenance tasks such as software updates, security patches, and system backups. They may also monitor the client’s network for potential issues and provide recommendations for improvements. This model often includes a flat monthly fee for services, which can help businesses budget for their IT expenses more effectively. Overall, the proactive model is a great option for businesses that want to minimize IT-related downtime and ensure that their systems are always running smoothly.

Strategic Model

The strategic model is a type of managed services model where the MSP takes on a more strategic role in the client’s business. This means that they work closely with the client to understand their business goals and develop an IT strategy that aligns with those goals. The managed service provider may also provide consulting services to help the client make informed decisions about their IT infrastructure. This model is best suited for businesses that see IT as a strategic asset and want to leverage it to gain a competitive advantage. The strategic model can help businesses stay ahead of the curve and adapt to changing market conditions.

In the strategic model, the MSP takes a proactive approach to IT management, constantly monitoring and optimizing the client’s systems to ensure they are running smoothly and efficiently. This includes regular maintenance, updates, and security checks to minimize downtime and prevent data breaches. The MSP may also provide training and support to help the client’s employees use technology more effectively. By working closely with the client, the MSP can identify opportunities for innovation and help them stay ahead of the competition. Overall, the strategic model is a collaborative approach that can help businesses achieve their long-term goals and maximize their return on investment in IT.

Co-Managed Model

The co-managed model is a type of managed services model where the managed service provider works alongside the client’s internal IT team. This model is best suited for businesses that have an internal IT team but need additional support and expertise. The MSP can provide specialized services or take on specific projects while working collaboratively with the internal IT team. This model allows businesses to leverage the expertise of both their internal team and the MSP, resulting in a more efficient and effective IT operation.

In a co-managed model, the MSP and internal IT team work together to identify areas where the MSP can provide additional support or expertise. This could include managing specific applications or systems, providing cybersecurity services, or assisting with IT projects. The MSP can also provide proactive monitoring and maintenance to ensure that the IT infrastructure is running smoothly. By working collaboratively, the internal IT team can focus on strategic initiatives while the MSP handles day-to-day operations. This model is particularly beneficial for businesses that want to maintain control over their IT operations, but need additional support to achieve their goals.

Finding the Right Managed Services for Your Business

The managed services model is a popular approach for businesses looking to improve their efficiency and security while reducing costs. However, it’s crucial to partner with a provider who is committed to delivering high-quality services and developing a strategy that aligns with your business goals. Don’t hesitate to discuss the various ways in which a managed service provider (MSP) can assist your organization. Ultimately, you have the power to make informed decisions and choose the MSP that best suits your needs.

The managed services model is a way for businesses to outsource certain tasks and responsibilities to a third-party provider. This can include IT support, HR management, and financial services. By utilizing a managed services model, businesses can focus on their core competencies while leaving other tasks to experts in the field.

If you’re interested in learning more about how Downtown Managed Services can help support your organization through managed services, contact us today. We will help you select a model of right managed services. Sign up for a consultation right now!