The History of Managed Services

The History of Managed Services

It all started with the rapid rise of technology. Businesses around the world decided that it was time to ditch the old school methods of communication. Instead, they decided to accept the future – and that’s when computers entered the picture.

Along with these computers came maintenance problems and constant issues. Most companies brushed these issues aside. But like everything else, they needed to be repaired when they completely broke. It was that exact mentality that created the break/fix model of IT services.

As the name implies, the model was very simple; when a machine broke, the IT teams were dispatched to fix it. While the machines were slowing down and malfunctioning, the IT teams did nothing. After all, it wasn’t broken yet. Why bother wasting time on a machine that (kind of) works?

The Rise of Break/Fix

Break/fix IT reigned supreme for a long time. It was most popular in the early 90s, where businesses simply didn’t have that much to work with. It didn’t make sense to hire people to constantly service machines.

Obviously, there were several glaring flaws in this plan. For starters, companies needed to accept that there would be copious amounts of lost data, downtime, and productivity. They also had to endure hefty bills to fix big problems, which could happen sporadically. They could go months without ever calling an IT person, or they could spend their entire IT budget in a troublesome week. This made IT budgeting basically impossible and extremely difficult to estimate.

In other words, the model was based on pure luck and poor planning.

The Fall of Break/Fix

By the end of the 90s, technology began to ramp up considerably. Office workspaces included multiple unique devices that needed servicing and repair (such as printers, fax machines, and other specialized hardware). New computers, while more user-friendly, became more complex and required more time and money to repair.

In a short amount of time, the break/fix model became unfeasible for businesses.

There needed to be a change. Companies just couldn’t keep up with the random downtime and errors that occurred throughout their day. They needed a solution that would keep things running smoothly, and provided a predictable cost that they could budget around.

The Rise of Managed Services

Many of the older break/fix model companies realized that the IT situation was changing. Most began to offer flat rate fees with service-level agreements – they could guarantee that organizations would stay up and running with minimal change in operating costs. The entire industry changed from being reactive to broken devices to being proactive to those that needed maintenance.

This new system of managed services was beneficial for all parties. Companies saw increased productivity and efficiency from less downtime and errors. Managed service providers saw incentives to provide better care. After all, a healthier network meant less work to maintain.

Modern Managed Services

The technology has changed countless times since the rise of managed services, but the model remains largely the same. Modern companies know that it pays to invest in a solid IT infrastructure; in 2017 alone, 42% of small businesses planned to increase their IT spending.

That’s the reason we provide superior managed services to our clients. We want to make them happy by keeping them up and running smoothly. We aim to help companies grow by effectively handling their IT operations, leaving them to run their business without worry.

If you’d like to learn more about our managed services and how we can help your organization, reach out to us today.