MANAGED SERVICES - Cogeco Peer 1 · But protecting infrastructure and sensitive data places a large...

MANAGED SERVICESHOW OUTSOURCED IT DRIVES SUCCESS

Contents

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1. Executive Summary

2. Challenges to Modern Business

3. Key Benefits of Managed Services

4. Are Managed Services Right for You?

5. Choosing a Managed Services Provider

6. Cogeco Peer1 Managed Services Checklist 14

White Paper - Managed Services: How Outsourced IT Drives Success 1

At a time when organizations are under increasing pressure to become more efficient, more productive and lower their costs, the issue of IT infrastructure management often finds itself under the spotlight.

For many years, the traditional infrastructure management model - which sees businesses maintaining IT assets on-premise with internal resources - worked well. It allowed businesses to keep all their precious IT assets close by, and have only internal employees managing them on a day-to-day basis.

But times have changed and so has technology. Now, businesses know they must keep up with technological innovations or risk falling behind in their industries. Then there’s future growth to consider and what tomorrow’s infrastructure requirements could begin to look like.

It’s a situation that, in the past, left businesses with few options. Fortunately, the rise in popularity and availability of managed IT services has given organizations more options.

By definition, managed IT services providers maintain and monitor an organization’s IT hardware and software assets on an ongoing basis for a monthly fee. This proactive management model can be provided on a fully outsourced or co-sourced basis depending on the requirements and needs of the company.

By partnering with a managed services provider, organizations can reap a number of benefits, including reduced costs, greater availability and better ROI. One of the primary drivers, however, is that with day-to-day IT management taken care of, businesses can once again focus their attention on the critical and strategic functions that add to their overall value, and complement their growth ambitions.

1. Executive Summary

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2. Challenges to Modern Business

IT is forever evolving, hypervisors… power databases… business-critical applications… an array of operating systems… complex networking configurations… nascent cloud technologies… advanced storage solutions… the list goes on. The bottom line is that business IT estates are growing more complex, and now comprise more diverse technologies than ever before.

Add to this the increasing reliance on eCommerce as a primary sales channel, and the often relentless expectations of Internet shoppers for seamless user experiences, and it soon becomes apparent that simply keeping IT systems up and running is no longer good enough.

If businesses want to survive - let alone thrive - their IT operations need to be flawlessly managed, and their infrastructure performing at its best 100% of the time, i.e. 24/7/365.

However, achieving this in-house, with on-premise personnel and infrastructure solutions, is a difficult challenge for any modern business:

1. eCommerce and the Global Online MarketplaceWhether it’s a modest business website that can handle customer enquiries and fulfill a limited number of online orders, or a full-scale global eCommerce offering that is the organization’s number one sales channel, the performance and management of the underlying infrastructure is paramount.

Internet shoppers demand unparalleled performance every time they visit your business website. If their expectations are not met, even on just one occasion, there’s a strong possibility that they’ll look at other businesses to meet their online shopping needs.

That’s why modern businesses need to ensure that their eCommerce offerings are always available and provide a consistent, performance-oriented online shopping experience.

Furthermore, as organizations expand their online reach and look to enter new markets, the importance of delivering eCommerce experiences on a global scale - and which appeal to an exponentially expanding customer base - are intensified.

While on-premise IT solutions that are maintained and managed by in-house resources are capable of delivering such high-performance eCommerce offerings, the associated costs and skills needed often make the situation untenable.

2. SecurityThe issue of security was firmly thrust under the spotlight in 2015. The world witnessed more data security breaches over the course of 12 months than ever before, with some of the world’s biggest brands falling foul of the cyber-crime.

It was a wakeup call for organizations. Suddenly, it wasn’t a case of whether they would be affected by a security breach, but when.

This is especially relevant for businesses that handle large amounts of sensitive customer data.

White Paper - Managed Services: How Outsourced IT Drives Success

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Receiving bad publicity and reputational damage because of a security issue is one thing, but when personally identifiable information (PII) is compromised as a result, the consequences are inevitably a lot more serious.

That’s why every aspect of IT security needs to be a top priority for modern businesses. They simply can’t afford the reputational damage, or the potential litigation, that invariably comes with a high-profile data security breach.

But protecting infrastructure and sensitive data places a large burden on internal IT teams, and budget constraints coupled with efficiency drives sometimes mean that there are areas which are overlooked.

3. Regulatory ComplianceAs business users cry out for more decentralized IT solutions that enable them to work more freely, efficiently and productively, an organization’s regulatory compliance obligations become vastly more difficult to manage.

Linked closely with security, compliance regulations can be a minefield for businesses that are managing their IT in-house. With the large number of data breaches that occurred last year, compliance is now a hot issue for IT, particularly as failure to meet regulatory guidelines could mean crippling financial penalties.

The situation has become especially difficult to manage as mobility initiatives flourish and BYOD schemes gain traction.

Data stored on laptops, mobile devices and removable storage all adds to an organization’s regulatory risk, which is why compliance is now a core consideration for IT managers. This is before even considering the threats posed by shadow IT, third-party apps and rogue/naive employees.

4. Skillset and ResourcesMaintaining and managing a complex infrastructure environment requires highly-skilled IT personnel who always keep their fingers on the digital pulse. As new technologies emerge and existing technologies evolve, the need to stay up-to-date in terms of skills and knowledge increases.

However, finding and retaining individuals who boast the skillset needed by most companies can be difficult. Furthermore, as demand for certain skills increases and outstrips supply, the remunerations commanded by such talent also rise.

This leaves businesses facing a predicament: hire individuals who have the skills they need already, but are also likely to represent a large investment, or train existing resources so that they are qualified to manage the various technologies the business wants to leverage.

Both choices will involve significant costs, and then there’s the issue of new and emerging technologies to address. These burgeoning solutions will either require additional training, or more


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investment in new resources.

Failure to make said investment could leave a business in a situation whereby it can’t take advantage of the same technological breakthroughs as its competitors. This would see it lose its competitive edge, as well as possible operational efficiency savings.

5. Keeping up with the JonesesOrganizations today need to stand out in their respective marketplaces, and one of the best ways to do this is through advanced infrastructure solutions. Both customers and employees alike want to utilize the latest technology.

A business that cannot accommodate the wants and needs of its employees, and furnish them with IT solutions that drive efficiency and productivity, is likely to see some of its workforce move to an organization that can.

The same goes for customers and potential leads. Businesses that provide enriching experiences and facilitate the usage of innovative technologies will stand out from the crowd.

However, the costs associated with large infrastructure upgrade projects, and the ongoing maintenance afterwards, often excludes many businesses from undertaking them. This is especially true for companies that are starting out and have placed much of their focus on achieving strong growth.

6. Aligning IT with Business GoalsIT resources today need to be doing much more than just keeping the lights on. But budget and time constraints often mean that their day-to-day routines involve more firefighting than perhaps they should.

Modern businesses need the goals of their IT and business departments to align. This ensures that the latter’s requirements are always kept in mind whenever new IT solutions are introduced. In fact, it should be the case that IT investments are made to satisfy specific business goals.

IT departments that continue to just provide the bare minimum for business units could find themselves being circumvented as users seek to benefit from disruptive technologies. This reality can not only represent a security risk, but also has the potential to see the IT department further undermined in the future, which will ultimately bring its worth into question.



7. Cost ReductionsMany businesses today find themselves under increasing pressure to improve operational and strategic efficiency. This necessity stretches right across the board, but it’s often the non-revenue generating departments, like IT, that are expected to realize the biggest cost savings.

The problem, however, is that purse string tightening and a heavy focus on efficiency gains mean getting infrastructure projects approved and off the ground can be difficult. This is despite the fact that said projects may lead to direct cost savings further down the line. The business case and ROI need to justify the new technology.

But it’s not just infrastructure upgrades and new technology introductions that need to be considered. Just the continuous management of an organization’s IT estate represents a significant ongoing investment in itself.

When you start to add into the equation the cost of replacement equipment following a hardware failure, it soon becomes apparent that monthly IT budgets - even if no new projects have been approved - are not such a fixed cost after all.

It’s only through the continued adoption of cloud services that businesses can switch to more of an OPEX-aligned cost model, which significantly reduces the need for large capital expenditures.

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Historically, organizations had two choices when it came to the maintenance and management of their IT estates: outsource it completely to a third-party service provider, or build and maintain an internal IT department within the business.

This all-or-nothing approach left companies with either very little or no control over their IT infrastructure operations, or trying to fund an expensive IT budget - both of which were often undesirable.

With managed IT services, it’s no longer simply all-or-nothing. In fact, in many cases, managed services actually complement, not replace, an organization’s internal IT functions. This is why the managed services model has experienced such a sharp rise in popularity and adoption in recent years. Organizations can choose which services will be managed by the IT services provider and which ones will remain in-house.

One of the most appealing aspects of a managed services setup is that businesses have the freedom to tailor and optimize their service contracts in line with their needs. This allows them to continue to focus on expansion, without having to worry about whether their IT infrastructure can keep up.

The benefits of a managed services approach are numerable:

1. Unparalleled PerformanceWhen it comes to maintaining and managing servers in-house, it can often be a challenge to simply keep them up and running, let alone optimized for performance. But with the always-on demands of eCommerce solutions and the strong desire of business users to take advantage of new technologies, a performance-oriented IT estate is what organizations today need.

With managed IT services, a company’s critical infrastructure is meticulously managed around-the-clock to ensure peak performance at all times. It ensures that an organization is always getting the biggest bang for its buck out of its infrastructure. Such a performance-driven approach sees the organization utilizing its infrastructure in the most efficient way possible.

2. Minimized DowntimeWith internal IT resources often being pulled in several different directions at once, active infrastructure monitoring can sometimes take a back seat. As long as the server is up then it’s perceived to be functioning correctly.

However, a reactive approach when a problem arises, often leads to a period of downtime. Regardless of its length, no downtime is good for a business. That’s why a proactive approach, which involves round-the-clock monitoring, serves to minimize the risk of any downtime ever occurring.


3. Key Benefits of Managed Services

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Preventative measures can be taken to ensure that the business and its users feel no impact.

3. Proactive SupportEven with 24/7/365 proactive monitoring, issues sometimes still occur. It’s an inevitable part of running a high-end IT estate. That’s why the dedicated support teams employed by managed IT services providers are such a huge benefit to organizations.

They invariably consist of individuals who have a long and experienced history of providing IT support, and who keep their skills and knowledge up-to-speed with the latest technologies. This means that should an issue arise, the organization does not need to pull its own internal IT resources away from their day jobs to investigate. The managed services provider’s support team will investigate and resolve any issues, and provide a full post-mortem after the event to ensure that future recurrences are minimized.

4. Disaster Recovery and Business ContinuityDelivering exceptional services is what managed services providers do. The data centers and networks that they have designed and built are ones that even the most successful and prosperous organizations could wish for.

One of the benefits of this is that numerous IT redundancies are included in the overall services package. This means that organizations often have a fully redundant IT estate, which can be recovered (if needs be) in a short space of time. This boosts business continuity and further minimizes risk for the business.

5. ScalabilityAn in-house managed computer estate is usually spec’d to the needs of the business at the point of its inception, with a little room for growth often factored in. The trouble with this is that while it allows a business to expand in the future, it still affords only so much scope for doing so.

With managed services, on the other hand, businesses can add additional compute power as they need it, and never have to worry about outgrowing their IT resources. Additional compute power, disk space and memory can all be allocated on-demand, ensuring that an organization is never left wanting for more.

6. CentralizationAs an organization’s IT estate grows, there is a tendency for it to become fragmented, and server sprawl to occur. This results in poor hardware resource utilization, wasted energy, as well as poor system and software level security.

With a managed services model, an organization’s IT assets are, for the most part, centralized in a single location. This allows for them to be more efficiently managed, upgraded and supported on an ongoing basis.

7. ExpertiseManaged services providers make it their business to stay on top of emerging and new technology trends. They invest in their staff to maintain knowledge levels throughout, and ensure they have the most recent and relevant qualifications to complement the services they are providing.

It may be the case that an organization only needs to call upon a certain skill once, which is why specific training can be an expensive commodity. With a managed services model, the business can get access to specialist skills on a need-by-need basis, saving both time and money.


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8. Best of Breed TechnologyIt’s a given that managed services providers utilize best of breed technology to deliver their services. This enables organizations and their employees to take advantage of the latest technologies without having to purchase and maintain them internally.

The managed services provider will invest in new hardware and software as it becomes available, affording no additional cost or financial risk to businesses. Organizations can reap all the benefits associated with new technologies, without having to worry about their infrastructure estates becoming obsolete over time.

9. SecurityIn addition to best of breed technology, managed services providers have an obligation to ensure that every piece of hardware and software has the latest vendor-released patches applied, which ensures that every component of an IT estate is secure and stable. This is something that businesses with internal IT teams can find difficult to stay on top of.

Today, patches are released on a routine basis and failure to apply them in good time can lead to a disruption in an organization’s ongoing vendor support. With managed services, this requirement is negated and businesses have the peace of mind that comes with knowing that their infrastructure is fully secured, up-to-date and in line with vendor support stipulations.

10. Freed Up ResourcesWith day-to-day infrastructure management, support and maintenance in the hands of a proficient and capable managed IT services provider, an organization’s internal IT resources have more time to focus on their value-add tasks.

Internal IT teams have more time to work closely with business units to devise solutions that improve productivity and satisfy user requirements. Such collaboration is mutually beneficial, as the business users benefit from IT solutions that empower them, while the internal IT teams get the opportunity to concentrate on projects that afford real business value, instead of just firefighting.

In a relatively short period of time, business and IT goals can become aligned with each other, delivering positive outcomes across the board.

11. Reduced and Predictable CostsHardware and software investments can consume a huge part of an IT budget - especially if an organization wants to ensure it is on the cutting edge when it comes to technology.

With managed services, all of the capital expenditure is undertaken by the service provider. This enables a business to manage its ongoing IT costs on a much more structured and predictable basis.

Suddenly, the unforeseen outlays associated with equipment failure and upgrades are eliminated, allowing the organization to benefit from reduced costs, which means more money can be channelled into other areas of the business.



12. A Reduced Carbon FootprintBy harnessing the power of renewable energy resources, many managed services providers can run their data center facilities in the most environmentally-friendly way possible. This enables businesses to lower their carbon footprints, at the same time as leveraging the latest technologies and solutions available.

Achieving a reduced carbon footprint using in-house IT is something that is very difficult for businesses. As computing needs increase and more technology is added, additional power is invariably required.

The bottom line is that powering, cooling and running a small on-premise facility can use up a significant proportion of a company’s IT budget. By partnering with a managed services provider, an organization will never need to worry about the cost of keeping the lights on ever again.


Managed services solutions are allowing more organizations to offload the day-to-day management of their IT infrastructure, and concentrate once again on the core business competencies that ensure they are in the strongest position possible for the future.

The fact that managed services providers can accommodate a wide-range of business needs, makes them a highly attractive proposition for companies of all sizes.

While managed services providers can help an organization make an informed and educated decision about what’s right for them, it’s only the business itself that knows what kind of IT service offering will reap the greatest benefits.

To help with the decision-making process, business leaders can review the following questions and assess whether managed services would be a good fit for them:

1. Do we have to operate in real-time to meet customer needs on a 24/7 basis?

2. Do we need to reduce the overheads associated with our IT operations?

3. Do we want to increase revenues and profitability?

4. Is our business in transition?

5. If so, do we need to upgrade infrastructure?

6. Is the scope of our business operations shifting?

7. Are new technologies needed for growth?

8. Are we looking to enter new markets?

9. Do we need to maximize ROI and reduce costs?

10. Do we need to manage risk and compliance?

11. Are we looking to streamline operations and improve productivity?

12. Is an increased level of IT service required?

13. Do our internal IT resources require extra training to meet our ongoing needs?

14. Do we want to centralize services?

15. Does our IT budget need stabilizing?

4. Are Managed Services Right for You?

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5. Choosing a Managed Services Provider

The decision to partner with a managed services provider is often an easy one for businesses to make. However, with so many competent providers out there, how can an organization ensure that they choose one that is right for them, and can meet their ongoing needs?

Organizations need to enter the decision-making process with a definitive list of requirements, as well as a set of desirable outcomes. That way an informed decision can be made based on the criteria at hand, which ensures the relationship will be both lasting and beneficial.

It’s important that any potential service provider understands exactly where the organization is today, and where it wants to be tomorrow. However, managed service providers that adopt a one-size-fits-all approach will sometimes not be able to offer this level of intimacy when discussing requirements.

For this reason, businesses should look to partner with a provider that puts as much emphasis into

listening as it does talking.

1. A Proven Track RecordFew people would buy a car from a manufacturer that has no proven track record of building quality vehicles, or that has a history of mishaps. The same absolutely applies when it comes to choosing a managed IT services provider.

Any MSP worth its salt should be willing to provide case studies to show its effectiveness supporting real-world organizations, and testimonials from current/past customers to highlight its service ethos and suitability.

Businesses should question whether a provider that cannot, or is unwilling to, provide such evidence is

really a company that they want to enter into a strategic partnership with.

2. Staff CertificationsA managed services provider will have invested a significant amount of time and money into its staff. Therefore, its engineers should boast a plethora of qualifications and certifications, which the provider should be proud to disclose.

This is important as businesses will be entrusting some of their most valuable digital assets (if not all of them) with the provider, and so peace of mind needs to be instilled from the very start of the relationship.

It will also serve to satisfy some parts of the organization’s due diligence considerations, and convince shareholders that the service provider is fit for purpose.

3. Conduct a Site VisitWith testimonials and engineer certifications/qualifications secured, businesses should inquire whether a visit to the provider’s site is possible. While a good idea of how the provider operates can be gleaned from its literature and presentations, a site visit will connect all the dots, and allow the organization to see exactly how the provider’s physical premises are setup.

It’s also a great opportunity for the organization’s internal IT resources to meet some of the individuals that they could potentially be working closely with going forward. The process will have the

added benefit of engaging internal IT in the overall selection process, which will boost its buy-in.


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4. Physical Security ConsiderationsA site visit also presents a great opportunity for the organization to assess the managed services provider’s physical security measures.

Keeping servers up-to-date with the latest vendor patches, and implementing best-practice network security protocols is a given when it comes to managed services. But physical location-specific security also needs to provide reassurance.

CCTV cameras, security guards, sophisticated entry systems and cabinet locks are just a few of the fundamentals that businesses should be looking out for.

5. Upgrade Schedules and AvailabilityManaged services providers will have very rigorous upgrade schedules and patching processes, which businesses should discuss with them to ensure their expectations are going to be met throughout the course of the relationship.

Obviously, keeping servers secure with the latest vendor patches is very important. But if that process results in downtime then an organization may want to rethink which provider it partners with.

High availability and no downtime should be things that a managed services provider can guarantee, even with a busy patching and upgrade schedule in place.

6. 24/7/365 Proactive MonitoringComprehensive, fully-managed services solutions should include 24/7/365 proactive monitoring for an organization’s entire IT estate, as standard. One of the biggest benefits afforded by companies that partner with a managed services provider is the peace of mind that comes with knowing their business-critical assets are in the safest possible hands.

It’s only with 24/7/365 proactive monitoring that organizations can reassign their internal IT resources to focus on the tasks that deliver real value to the business.

7. Unparalleled Support at All TimesShould an incident occur, organizations need to know that the managed services provider they’ve chosen will respond quickly, effectively and in a manner that keeps downtimes to an absolute minimum.

While service level agreements are in place to address any service failings, they are usually not discussed until after the event has occurred. That’s why businesses need to know that any infrastructure issues will be dealt with by the managed services provider automatically, and resolved ASAP.



8. Detailed Asset TrackingThe computing world has been bitten by the big data bug, with metrics and reports now produced for almost every facet of IT service management.

A managed services provider will also undoubtedly be able to extract data, create reports and submit them to a business for review to help with hardware and software asset tracking. These reports can also be used to help satisfy compliance requirements, and so are something that organizations will want to utilize wherever possible.

9. IT Strategy PlanningWhether it’s referred to as a ‘Virtual CIO’ or just IT strategy planning, it’s something that many managed service providers supply in addition to the day-to-day infrastructure management that they are so often known for.

Organizations will almost certainly retain overall governance of their corporate IT strategies, but regular technology performance updates, budget planning advice and business impact analyses are all components that managed IT services providers can give constructive input on.


# Criterion Notes

1 Does the provider fully understand our business needs?

2 Is support provided on a 24/7/365 basis?

3 Is proactive monitoring provided on a 24/7/365 basis?

4 Does the MSP have a proven track record?

5 What certifications/qualifications do the MSP’s engineers

hold?

6 Can a site visit be arranged?

7 What physical security measures are in place at the MSP’s

site?

8 How does the MSP handle server upgrades, patching and

availability?

9 Is detailed asset tracking available?

10 Can the MSP help with IT strategy planning?

11 Can the MSP present metrics to highlight performance levels?

12 What disaster recovery and business continuity facilities are in

place?

13 How flexible is the MSP’s offering? i.e. can changes in business

requirements be accommodated in the future?

14 Can the MSP ensure regulatory compliance?

15 What is the level of service scope? E.g. hypervisor, OS,

application, database, network, SAN management?

16 Does the MSP boast specialized eCommerce infrastructure

solutions?

6. Cogeco Peer1 Managed Services Checklist

© 2016 Cogeco Peer 1

About Cogeco Peer 1Cogeco Peer 1 is a wholly-owned subsidiary of Cogeco Communications Inc. (TSX:CCA) and is a global provider of essential business-to-business products and services, such as Colocation, Network Connectivity, Managed Hosting, Cloud Services and Managed Services, that allow customers across Canada, the United States and Western Europe to focus on their core business. With 17 data centers, an extensive FastFiber Network™ and more than 50 points-of-presence in North America and Europe combined, Cogeco Peer 1 is a trusted partner to businesses small, medium and large, providing the ability to access, move, manage and store mission-critical data worldwide, backed by superior customer support.

To learn more about how our Data Center Services can help your organization, please visit www.cogecopeer1.com

CA 413 Horner Ave, Etobicoke, ON M8W 4W3

1.866.579.9690

US 250 E Grayson St, San Antonio, TX 78215, United States

1.888.978.7251

UK 30 Town Quay, Southampton SO14 2AQ, United Kingdom

0800 840 7490

FR GreenSide, Bât 2400 avenue Roumanille06410 Biot, France

0805 210 280

Ready to learn more?Streamline your IT with Cogeco Peer 1 Managed Services. Visit www.cogecopeer1.com

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