Managed services describe recurring IT services such as the supply of storage space, applications, backups or the monitoring of IT infrastructures.
The type, scope and quality of these services are specified in a service level agreement (SLA) between the customer and the managed service provider (short MSP). The contents of a SLA are, for example, the contract term, the responsible persons,the availability of the IT systems or the response time in the case of a malfunction.
If the key parameters/terms of the SLA are not fulfilled, the customer may demand a refund of the full or a part of the paid fees. Contractual penalties may also be due in the event of non-compliance with the SLA.
Especially for small and mid-sized companies, the advantages of managed services outweigh the disadvantages and can help to save costs and resources. This is because transferring services to a managed service provider frees up resources in their own company so that they can concentrate on their core business. In addition, MSPs usually have a great deal of expertise in this area and ensure that the services and processes are available and kept up to date. Additional services can also often be added quickly without any investment on the part of the customer. Alternatively, they can be terminated in accordance with the agreed contract terms. This guarantees the maximum possible flexibility for the customer.
On the other hand, long contract periods can also be seen as a disadvantage under certain circumstances. For example, the costs must continue to be paid even if the service is not used. It should also be ensured in advance that the MSP is able to provide the requested services.