Managed services: the time is now

There have been many iterations of managed services over the years. Outsourcing, while at the more robust end of the managed service spectrum, has numerous successful examples but is often viewed as being too big, too risky and of giving up the keys to the kingdom. At the less robust end, the XaaS service model has provided some value in mitigating capital investments and moving to a “per user” model but has also not been the panacea to the cost-effective delivery of desired outcomes. The current business climate for both suppliers and customers is now ripe for a more focused supplier engaged model.

Business customers are weary of the never-ending litany of added features and capabilities that bloat major applications. The reality is many customers do not know how to leverage all that their applications offer and complain of unused features and excess licenses. The “Consumption Gap”[1] created by the Suppliers ability to continually add features and functions at a faster rate than customers’ ability to consume them has resulted in: 

  • The average effective rate of enterprise software utilization is only 54%[2]
  • Only 14% of enterprise software deployments are rated as “very successful” by the IT executives that own them[3]

Those realities did not used to be a problem for the suppliers. In the old model the supplier was paid up front for the product and professional services to implement (as well as a solid maintenance annuity) and the success of the product was up to the customer to ensure. The XaaS model flipped that responsibility. With little to no financial investment and a model that charges based on a per user, per month amount the onus now falls on the supplier to insure adoption and success of the applications. If they are not successful and the customer decides to make a change, the supplier cannot make up their investment as the customers ability to move to another supplier is usually less costly than the previous CAPEX model.

 

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Increasingly the customer is also demanding that the supplier deliver specific business outcomes. It doesn’t matter whether the application is hosted on-premises or at a hosting company or only exists in shared infrastructure in the cloud – it’s the outcome that matters.

It is this confluence of XaaS offers (or the Suppliers interim step to XaaS) and customers business outcome demands that are fueling the next phase of Supplier – Customer relations based on managed services offers. Customers define value in numerous ways but they ultimately break down to three elements:

  1. making money (increasing revenue)
  2. saving money (lowering costs)
  3. reducing risk

Leveraging managed services addresses both the suppliers need to insure customer success and the customers’ ability to make money, save money and reduce risk.

Make Money, Save Money and Reduce Risk

Leveraging Veritas Managed Services can free up internal resources to focus on applications that drive revenue and not on managing the complexity of the infrastructure. Veritas experts take ownership of ensuring a successful outcome for the application investment.

Managed Services experts provide 24/7 monitoring and remediation capabilities across a diverse set of Veritas and other leading backup and recovery solutions and/or Veritas Enterprise Vault environment resulting in a predictable and lower overall cost while optimizing customer assets.

The Managed Services solutions also offers guaranteed business outcomes via SLA’s and a significantly reduced risk of lost data and unsuccessful restoration activities.

Reach out to your Veritas Professional Services resources today to discuss how augmenting your Veritas Implementation and Consulting services with a Managed Services offer can help maximize your investment.

[1] Source: Complexity Avalanche, 2009

[2] Source: 2010 Software Success Survey, TSIA

[3] Source: TSIA, Neochange, Sand Hill Group 2009 research