Managed service providers (MSPs) can offer a reduced cost because their team of IT professionals serves many customers rather than a single company. This means that you can save costs and still have access to 24-hour monitoring and support, as well as a team of professionals who are fully equipped to manage your IT. When your company spends money on computer hardware systems, for tax purposes, they are considered capital expenditures. These costs are tax-deductible, but they are subject to depreciation, which means that the amount allowed for tax deductions is reduced every year. If you pay a managed service provider a monthly fee for the use of your computer hardware, it's considered an operating cost.
Operating costs are not subject to amortization, which means that your company can use the full amount paid as a tax deduction year after year. By converting your capital expenditures into operating expenses, your organization will pay less taxes. Using an MSP for cloud services represents significant cost savings compared to building your own facilities. An MSP can offer “as a service” offerings, such as SOCaaS, DRaaS and BUaaS, that protect your business without the prohibitive costs of energy, storage, maintenance, software and other costs. By any measure, a managed services agreement is more cost-effective than equipping an entire IT department with a variety of subject matter experts.
According to a CompTIA survey, approximately half of companies working with an MSP reduced their annual IT costs by up to 25 percent. Another 33 percent saved up to 50 percent and 13 percent reported saving more than 50 percent. By taking advantage of managed service providers, you can reduce the cost and quantity of on-premises hardware by replacing it with the use of the resources of a managed service provider. By working with a managed service provider, your company will have a cost-effective connection to the latest technological developments. Keeping your IT expenses in line with the quality of the services they offer is another balance that must be monitored. Recently, IDC (International Data Corporation), which provides information on market research on the technology, telecommunications and consumer technology markets, conducted a survey among companies that had implemented managed IT services.
Managed IT will keep hardware running at peak performance and a network protected against ransomware and malware. Let us show you how a managed services agreement with GDS can ensure that you can access the IT support you need without going over budget. Managed service providers rely on staff who have a wide range of experiences in all types of IT environments. Managed IT can help your business reduce software costs, reduce the physical surface of office space, and reduce IT training costs. However, with the ongoing support and experience of a managed IT service provider, companies are much more likely to implement these three objectives, which can significantly increase their bottom line. As the information technology field has become more complicated, companies have turned to managed service providers (MSPs) for help.
Working with an MSP frees you from those costs while providing you with access to essential IT services for a predictable monthly fee. Managed IT allows your companies to scale up or down for special projects or in times of business fluctuations, while in-house IT staff provides the benefit of institutional knowledge. To learn more about how MBC managed services can reduce your business costs, get a free evaluation today. Internal staff will need a variety of essential network management tools, including remote monitoring and management platforms and network analysis. Data centers, servers, and IT storage facilities become the responsibility of the managed service provider and, at the same time, allow your organization to focus on its core business.
