An Open Letter to Managed Services Buyers and Sellers by @berkson0
The names may change but the fundamentals stay the same. When I first started in IT they called it outsourcing. It was something big companies did and the service was delivered by other big companies. SaaS and cloud services have changed the economics of the model and now we call them Managed Services Providers (MSP) or Cloud Services Providers (CSP), but the fundamental value proposition remains the same. It's important for businesses to focus on the areas where they have a competitive advantage to be successful in their market. For areas where it's more commoditized -- IT service management, HR, accounting, for example -- it makes sense to find the most effective way to do it. Not cost effective. Effective. It sounds simple, but many people on both sides of the transaction lose sight of it. Too often the MSP/CSP outsourcing transaction is looked at as a cost savings. However, cost is just one factor in the decision to outsource and not the most important one. It is likely when you