Managed services take away the risk

In an era of economic uncertainty, IT suppliers can help ease anxiety by offering IT as a managed service, writes Philip White

Recently, my firm experienced a private-equity-funded management buyout (CRN, 24 July). This was the culmination of several years creating a platform and infrastructure for sustainable growth that has seen the company evolve, progress and change almost beyond recognition.

As we enter this new era for the company, it has been interesting to witness the effects that change and uncertainty can have on a business, its people and its customers. In our case, even though the change has been entirely positive and welcome, it has been vital to maintain the financial stability that underpins the company, providing confidence, strength and security.

Change and uncertainty are everyday features of business life. Internally, even positive opportunities such as rapid expansion, changing premises or a management reshuffle can create a frisson of uncertainty in every area of a business. Less easy to quantify are the external factors that can lead to general uncertainty and a lack of confidence among the business community at large. Without pinpointing one single event, political situations both at home and abroad, combined with increasing consumer debt and mounting oil prices, are generating a dip in confidence in our economic climate. This will undoubtedly have an impact in the medium term.

Within this environment – whether a company is dealing with planned, internal changes or perhaps the threat of external influences – uncertainty causes businesses to reconsider many investment decisions. Many businesses choose instead to limit risk – specifically financial risk – wherever possible. IT suppliers already indirectly help their clients to do this by providing future-proof equipment, ensuring system compatibility and continuity and implementing security systems. But a more direct way to allow customers to plan ahead and reduce financial risk may be to offer a structured finance solution for IT acquisition.

Businesses have already demonstrated that they are willing to push back some of the risk of ownership, delivery and fulfilment of IT solutions by embracing managed services and other emerging models that offer a less hands-on approach to IT. And it is not just the larger corporates that are seeking a more stable, longer term, predictable IT environment: it is any business that can see the benefits of fixed-cost computing as a way of delivering greater financial stability. During uncertain times or periods of upheaval, IT suppliers should be well placed to offer considerable peace of mind to their customers by delivering this kind of fiscal security.

Importantly, it is possible for IT suppliers to offer many of the benefits of the managed-service approach – even to smaller customers – without risking their own financial security or suffering an unmanageable financial shortfall. In partnership with a credible finance provider, all the assets required for a managed service can be financed rather than paid for up front. If this is done properly, suppliers can end up paying no set-up costs at all. This allows resellers to open up the benefits of fixed-cost computing to a much broader customer base, delivering predictability, certainty, peace of mind and long-term financial stability, no matter what lies ahead.