the top reasons enterprises outsource it to msps
DESCRIPTION
Half of Executives Say They Foresee Moving Toward 100 Percent MSP EngagementThe survey, conducted in association with Enterprise Management Associates™ (EMA), collected responses, experiences and opinions from executives, mid-level managers and individual IT contributors from mid-sized and large organizations. All participants were currently engaged with an MSP, planning to engage and MSP, or had used MSP services in the past. Visit www.nimsoft.com for more information.TRANSCRIPT
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Phil LaForgeVice President –Service ProvidersNimsoft
Top Reasons that Enterprises Outsource IT to MSPs
Jim FreyManaging Research Director EMA
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Survey Background› Goal: find out what and why enterprises are outsourcing to service providers.
› Surveyed 100s of executives, mid-level managers and IT contributors at mid to large (1,000-20,000 employees) enterprises.
› Narrowed results to the first 100 to meet the size and title criteria and have utilized MSP services.
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Survey High Level Results› Broad existing practice and future interest in use of MSPs
EMA recommendation: Any organization seeking to balance business
priorities against near-term and long-term operation costs should consider utilizing MSPs—either as a means to supplement existing staff or as a primary approach to
operations.
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Respondent Demographics
15%
25%
34%
26%
10,000 - 19,999
5,000 - 9,999
2,500 - 4,999
1,000 - 2,499
Top Five Industries in Order of Representation:• Manufacturing• Finance/Banking/Insurance• Healthcare• Education• Retail/Wholesale/Distribution
2%
2%
28%
37%
20%
6%
5%
Don’t know
N/A (government/non-profit)
$1 Billion or more
$100 Million -r $1 Billion
$20 Million- $100 Million
$5 Million - $20 Million
$1 Million - $5 Million
Less than $1 Million
Number of Employees
Annual Revenue
7%
8%
13%
11%
24%
16%
13%
8%
Don't know
$100 million or more
$50 million - $100 million
$25 million - $50 million
$10 million - $25 million
$5 million - $10 million
$1 million - $5 million
Less than $1 million
Annual IT Budget
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Enterprise experience with MSPs
Sample Size = 100
What level of experience does your organization hav e with MSPs?
6%
39%
55%
0% 10% 20% 30% 40% 50% 60%
We have previously used an MSP
We are planning to engage an MSP
We are currently using an MSP
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Why do enterprises outsource to MSPs?
Who primarily drives the decision to contract an MS P within your organization?
12%
14%
5%
21%
48%
3%
6%
6%
15%
71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other Executive-level sponsor (Pleasespecify)
CFO
Line of Business Management
CEO
Line IT Support
CIO
Executives All OtherSample Size = 100; Responses not shown received 0%
CIO Most Commonly Making MSP Contract Decision
Sample Size = 100, Valid Cases = 100
Which of the following are the three (3) most import ant considerations in your organization’s decision to outsource IT manage ment to and MSP?
1%
9%
11%
13%
14%
22%
25%
26%
31%
34%
36%
37%
41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other (Please specify)
Gain visibility in system performance
Function is difficult to manage/out of control
Skilled resources are not available
Avoiding direct personnel costs
Better coverage for off-hours
Avoiding capital expense
Accelerate cloud adoption
Improve system uptime
Free internal resources to focus on more strategicprojects
Improve focus on core business
Improved technical experience/depth
Better total cost
Cost Factors Dominate, followed by Resource Considerations
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What do enterprises look for in an MSP?
Sample Size = 100, Valid Cases = 100
Q13_1 What attributes does your organization look f or when selecting an MSP? Select all that apply.
1%
12%
18%
18%
25%
26%
33%
34%
35%
35%
37%
50%
55%
55%
66%
0% 10% 20% 30% 40% 50% 60% 70%
Other (Please specify)
Published Service Catalog
Middle market/enterprise customers
SAS-70 Audited or PCI
Customer portal, reporting
Owns/Leases Tier 3+ Data Center
Services highly regulated industries
Implements ITIL-certified practices
Monitoring across all tech. domains
Has 7x24 NOC facilities
Industry-specific certifications
Solid capital base, vendor stability
Service level agreements
Reputation/references
Proven experience, depth of expertise
% Valid Cases (Mentions / Valid Cases)
Credibility Gets most Attention for Selecting an MSP
Sample Size = 100, Valid Cases = 100
Which of the following would be valid drivers for o utsourcing to more than one (1) MSP at a time? (Select all)
32%
61%
73%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Differing geographical regions of coverage
Differing domain / technology expertise
Balancing risk / business continuity
Most Would Consider Multi-sourcing MSPs
Sample Size = 100, Valid Cases = 100
What are the current or potential inhibitors/barrie rs for engaging an MSP?(Select all)
3%
39%
44%
50%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other (Please specify)
Lack of responsiveness
Uncertainty of cost
Loss of control
Security risk
Security, Control Top MSP Engagement Concerns
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What services do enterprises outsource to MSPs?
Sample Size = 100, Valid Cases = 37
What IT management functions is your organization p lanning to outsource to an MSP in the next year? Select only those that are planned.
24%
32%
32%
35%
35%
38%
41%
41%
54%
0% 10% 20% 30% 40% 50% 60%
Desktop Management
Network Operations Center (NOC)
Security Management
Network/Systems Management
Application Management
ITIL Processes
Business Service Management
Storage/Recovery
Service desk, Help Desk
% Valid Cases (Mentions / Valid Cases)
Priorities for Coming Year – Service Desk and Storage/Recovery
Sample Size = 100, Valid Cases = 41
Which of the following infrastructure technologies is your organization planning to have managed by an MSP? Select only thos e that are planned.
2%
22%
39%
44%
44%
44%
51%
51%
0% 10% 20% 30% 40% 50% 60%
Other (Please specify)
Physical desktops
Physical Servers
Data Center infrastructure
LAN/WAN
Virtual desktops
Virtual Servers
Storage
% Valid Cases (Mentions / Valid Cases)
Storage and Virtual Servers Most Commonly Planned for Management Outsourcing
Sample Size = 100, Valid Cases = 45
Which of the following application and services tec hnologies is your organization planning to have managed by an MSP? Se lect only those that
are planned.
18%
22%
29%
38%
44%
47%
60%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Video
VoIP
On-premise applications
Databases
SaaS applications
Public Cloud
Hosted applications
Private Cloud
% Valid Cases (Mentions / Valid Cases)
Cloud and Hosted Apps Most Commonly Planned for new MSP outsourced management
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What does the future hold?
Sample Size = 100, Valid Cases = 100
79%
21%
50%
50%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
No
Yes
Executives All Other
Many Can See an All-MSP Future
Do you envision a time where ALL of your IT is mana ged by MSPs?
Sample Size = 100
What % of your entire IT function is managed by an MSP? Current vs. Planning
1%
11%
22%
57%
9%
2%
7%
20%
36%
32%
3%
0% 10% 20% 30% 40% 50% 60%
100%
76-99%
51-75%
26-50%
1-25%
0%
Planning Currently
Organizations Planning Significant Growth in % of IT Function Managed by MSPs
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