4 Benefits of Working with Enterprise Managed Service Providers

Most analysts see artificial intelligence (AI), cloud migration, cybersecurity, and labor shortages as the top IT challenges in 2024 and beyond. AI-enabled applications require large amounts of clean data that can be processed quickly for real-time responses. Large data stores require cloud services. Hybrid work environments can raise cloud costs exponentially. 

These challenges are interconnected and compound one another. Securing networks becomes more complex as companies integrate on-premise and cloud voice solutions. Combining work environments creates a larger attack surface for cybercriminals to exploit, requiring more proactive monitoring. 

The lack of qualified cybersecurity and AI technology candidates compounds the infrastructure challenges. What IT departments need are strategies that simplify network operations. Enter the solution: enterprise managed service providers (MSPs).

What are Enterprise Managed Service Providers?

Enterprise MSPs are third-party companies that monitor, manage, and optimize network performance. They maintain network infrastructures for organizations that lack the technical expertise or resources to monitor and secure an enterprise-wide network for improved communication, collaboration, and connectivity.

Partnering with an enterprise MSP allows IT departments to address crucial challenges while capitalizing on benefits that can reduce costs, improve productivity, and streamline operations. Now that we understand what MSPs are, let’s explore the key benefits they offer.

Benefit 1. Lower Costs

Economic uncertainty means a more cautious approach to technology expenditures. Budget constraints force chief information officers (CIOs) to rethink their configured networks. A recent study found that companies have an average of 371 software-as-a-service (SaaS) applications, with 32% of those applications added between 2021 and 2023.

With cloud price increases, CIOs are focused on optimizing their existing technologies. They’re eliminating unused applications, consolidating duplicate services, and maximizing infrastructures. CIOs are looking for ways to manage cloud costs, such as adopting platforms rather than maintaining individual SaaS products.

Enterprise managed service providers consolidate technology services under a single umbrella. They can help identify unused or under-used applications and services. Some providers offer technology expense management that automates billing verification and optimizes spend. Proactive network monitoring improves uptime and increases productivity. By leveraging these capabilities, CIOs can significantly reduce expenses without sacrificing performance.

Benefit 2. Access Technical Expertise

Many organizations face IT staffing shortages, but how does that impact the bottom line? A 2024  survey reported that staffing shortages resulted in:

• Missed revenue goals (62%)
• Forced product delays (61%)
• Lost revenue (57%)

The IT skills crisis is projected to cost as much as $5.5 trillion globally in 2026. As a result, more IT departments are considering managed service providers to augment their in-house personnel.

SD-WAN

Enterprise MSPs have the technical expertise to address the performance complexities of a hybrid environment. They’re also experienced in advanced networking, such as SD-WAN implementations. As more companies deploy AI solutions, IT departments will need the bandwidth efficiencies that SD-WAN provides; however, they may lack the expertise to realize its full capabilities. Enterprise managed service providers can fill that gap.

Cybersecurity

The most crucial IT shortage is the lack of cybersecurity talent. It’s projected to reach 85 million workers by 2030, resulting in about $8.5 trillion in unrealized annual revenue. That makes cybersecurity a threat to the world’s economy. As more cybercriminals deploy AI-enabled attacks, the talent shortage becomes untenable.

To protect against evolving AI threats, organizations must collaborate with internal and external resources to ensure a robust cyber defense. A proactive approach anticipates attacks and deploys security models to counter potential threats. That level of security requires knowledge of identity-based, zero-trust networks.

MSPs have the cybersecurity staff to ensure a strong defense. With end-to-end infrastructure monitoring, they can analyze, alert, and remediate potential threats. They continually evaluate and harden a network’s infrastructure for ongoing protection. Experienced MSPs can use their expertise to augment or replace existing cybersecurity resources.

Connectivity

Optimizing network connectivity requires a specialized skill set. Managing today’s networks requires more than running Ethernet cables and configuring hardware. Effective management means understanding communication options such as fiber, power over Ethernet (PoE), and session initiation protocol (SIP). Network connectivity demands the technical expertise to deploy voice solutions over the same infrastructure as data.

Enterprise managed service providers proactively monitor network health, identifying potential performance issues that can result in unexpected downtime. Downtime isn’t just an inconvenience; it directly impacts the bottom line. At an estimated cost of $9,000 per minute, an hour of downtime means a $56,000 loss.  

By leveraging an MSP’s expertise across these crucial areas, organizations can deploy more robust infrastructures and reduce labor costs. Given today’s shortage, finding qualified talent is only the first hurdle. Companies then need the financial resources to acquire and retain IT talent. With an enterprise MSP partner, IT departments can access technical expertise without the associated costs of finding, acquiring, and retaining qualified personnel. 

Benefit 3. Ensure Scalability

Partnering is part of an organization’s path to scale. Internal partners must quantify data through appropriate governance models and relay that information to ensure scalability. External partners, such as MSPs, can use that information to scale infrastructures to meet changes in storage and performance requirements.

For example, seasonal retailers may require added bandwidth during peak periods to handle the increased volume of orders and customer questions. If AI-enabled chatbots are deployed, the infrastructure demands will be heightened. Unless the infrastructure is designed to scale, adding cloud services can take time that retailers may not have, frustrating customers and increasing churn.

Enterprise MSPs have the resources to scale quickly and effectively. This scalability is particularly crucial for businesses with fluctuating demands. For organizations looking to pilot an AI-based solution, scalability is crucial to the project’s success. A successful pilot can turn into a failure if the infrastructure can’t scale to support the demand. Working with an MSP allows IT departments to seamlessly add network resources to satisfy operational demands.

Benefit 4. Meet Critical Challenges

Whether by design or demand, organizations began their digital transformation within the last decade. Businesses added technologies as rapidly as possible to ensure employee flexibility and meet consumer demands. 

Those solutions created a complex infrastructure that requires more time, people, and resources to maintain. Companies facing critical challenges to their success consider enterprise managed service providers as a viable solution. Let’s explore how MSPs help organizations address some of the most pressing challenges:

Preparing for AI

Over half of businesses are already using AI—primarily for administrative tasks. Some use third-party solutions for fraud management or cybersecurity, while others deploy AI-enabled chatbots. Regardless of where on the AI-implementation spectrum companies land, they require infrastructure that will support the growing use of artificial intelligence.

Enterprise MSPs are uniquely positioned to address these needs.

1. They have the technical expertise to support complex network configurations.
2. They have an array of connectivity options that optimize performance.
3. They have the resources to scale quickly.

AI projects are expensive, and with economic constraints, companies are looking for ways to reduce costs while advancing their digital transformations. MSPs can reduce AI project costs and improve productivity. Unlike some cloud services, MSPs allow businesses to purchase the services they need to begin their AI journey without jeopardizing future growth.

Moving infrastructure management to an enterprise MSP removes the burden of an AI project’s trial-and-error processes from internal personnel. IT departments can reallocate resources to focus on business operations and growth.

Controlling Cloud Expenditures

Enterprise MSPs can help CIOs manage their cloud costs through network monitoring and analysis. They can help identify resource usage to determine cloud activity and spend. As cloud adoption increases, traditional capital expenditures are replaced by operational costs impacting an organization’s financial statements. Suddenly, those SaaS solutions affect profitability. Executives must now focus on maximizing their return on investment (ROI).

Enterprise managed service providers do more than monitor performance and manage hardware. They become partners that help businesses manage their technology spend. They can help identify usage patterns and assist in application and service consolidation. Top-tier providers automate enterprise technology billing. Because they monitor connectivity, MSPs can verify usage or uptime to ensure that organizations only pay for what they use.

MSPs often include cloud services such as voice over IP (VoIP) and cybersecurity. Consolidating infrastructure-related services on a single platform reduces costs, provides a single contact source, and eliminates the finger-pointing that often happens when multiple vendors are involved.

Maximizing Internal Talent

Based on current data, IT labor shortages are not going away. Trying to fill open positions is often futile since many candidates lack crucial skills. For those who don’t, compensation demands may be cost-prohibitive. Partnering with an enterprise MSP can alleviate the need for hard-to-find expertise.

With an expansive knowledge of advanced technologies, MSPs understand how to build an SD-WAN for optimum performance, end-to-end visibility, and operational oversight. Their cybersecurity experts know how to defend against cybercriminals’ ever-increasing sophistication. Moving these specialized skills to an MSP allows IT departments to focus on developing and retaining internal talent. Instead of having overworked IT staff nearing burnout, CIOs can devote more resources to maximizing the department’s existing skills and ensure that their organizations are prepared to meet IT’s critical challenges.

Gain the Advantages of Partnering With an Expert MSP

In the modern business landscape, technology evolves faster than we can implement it. Whether you’re facing staff shortages, network inefficiencies, or communication bottlenecks, finding the right enterprise managed service provider can help eliminate issues while saving on costs.

BCM One offers managed connectivity, SD-WAN, and cybersecurity services. Our proprietary technology management tool helps organizations control their expenditures. Combined with our enterprise voice solutions, we can deliver cost-effective solutions that address the critical challenges for improved communications and collaboration. Contact us today to begin experiencing the benefits of an enterprise managed service provider.