Advancing technology today makes a third-party IT resource an attractive model for small and medium-sized businesses (SMBs), and there are vast statistics to prove its success. As more and more companies migrate to a cloud-based solution for their IT infrastructure, service levels have increased and price points have become extremely competitive. Coupled with continually advancing technology, finding a dedicated business information technology (IT) resource is generally a win-win solution for SMBs as well as some large companies. The advantages are many.
Data Supporting Managed IT Services
Private, public, or hybrid cloud services usually include IT infrastructure, software, and platforms. To date, there is much data supporting managed IT services. It has been around just long enough to prove itself for companies that fit well into a managed IT services support model.
According to data by Statista and other market research firms, cloud computing—or using remote networks, servers, and equipment over the Internet—shows it as a successful alternative for managing IT components.
- IT Services Spend is forecast to Increase. Worldwide IT services spend has already surpassed $3 trillion, and this figure will continue to increase.
- The Public Cloud Services Market Continues to Expand. Data shows that this expansion is highly a result of businesses that employ over 1,000 employees. The manufacturing industry is responsible for 12%.
- Private Cloud Spending is high. Enterprise spend for the private cloud has reached over $20 billion and continues to increase.
- Data Center Traffic is Reaching Phenomenal Heights. Datacenter traffic is expected to reach over 10.6 zettabytes this year and grow by 9+ zettabytes by the year 2021.
- Cloud Revenue is at an All-Time High. Global revenues from cloud-based infrastructure have reached nearly $12 billion and continue to show as a huge driver of IT spend.
If the statistics don’t satisfy your skepticism in dedicated IT resources offered in cloud solutions, the pros and cons between virtual and on-premise solutions may shed some light. With every IT infrastructure model, there are pros and cons, and they change and evolve with technology. A pro or con today may in fact be something quite different next month or next year.
Pros and Cons of Cloud vs. On-Premise
The pros and cons of virtual components versus on-premise components are indeed revealing when it comes to making a choice between the two solutions for your SMB. The nature, size, location, and many other factors about your business are also considerations for a strategic migration decision that you only want to make once.
On-Premise IT Solutions Pros
- Your IT staff manages your dedicated server and network resources 24 hours, which is a plus when you desire on-demand modifications or immediate access for business-critical needs.
- Servers and equipment can be located on-premise or in an off-site facility (with some of the benefits of a virtual environment).
- Customization and configuration to meet your particular business needs are at the hands of your IT staff.
On-Premise IT Solutions Cons
- IT equipment is expensive to purchase, maintain, and replace; it is also subject to failure.
- Skilled IT professionals are needed in today’s high-tech environment to set up, configure, and maintain equipment.
- An on-premise solution may require a contractor or an outside vendor to assist with complex configuration or equipment repairs.
Virtual Managed Service Provider Pros
- With no hardware purchases required, upfront costs are minimized.
- Little time and money are spent on equipment configuration and hardware maintenance.
- Rely on expert remote assistance for IT components and software management.
- Minimize the need to hire internal IT talent.
- Increase efficiencies with a consolidated equipment and staffing approach.
- Attention to the environmental footprint when workloads are shared among staff.
Virtual Managed Service Provider Cons
- Recurring monthly costs may increase with this scalable IT solution
- Subject to application compatibility issues that require outside support.
- Numerous providers are surfacing, and not all offer scalable options and legitimate service level agreements (SLAs). Do the extra research.
- Server and application control is often placed in the hands of a third-party expert and requires a level of trust.
Whether you decide on an on-premise IT solution or a virtual managed service provider, finding the right IT services company for dedicated IT resource to guide you is critical. With business information technology a high priority for almost every company, it’s a decision you want to make for the greater good of your organization. Let RackCo be your guide. Get the information you need to make informed decisions for your enterprise and your valuable assets. There are many advantages to finding a dedicated IT resource.