What Is the Value Add of Managed Hosting in Today’s Market?

Value of Managed Hosting

By Laurie Head
AIS Network, VP Marketing Communications

By 2012, 20% of businesses will own no IT assets.
—projection from Gartner, Inc., “Gartner’s Top Predictions for IT Organizations and Users, 2010 and Beyond”

What is the value add of managed hosting in today’s market?

Quite simply, today’s managed hosting companies are putting the IT service infrastructure heretofore enjoyed by only big corporations—the “enterprise class”—into the hands of much smaller companies. Small- and mid-sized businesses can now realize all the enterprise class benefits of redundancy, reliability, and cost-effectiveness at a price point that is far more reasonable than managing servers in-house.

Managed hosting companies’ access to highly trained technical experts and deployment of radically superior server hardware and software—in addition to any special relationships that they may have with industry-leading technology partners—allow them to provide cutting-edge, highly scalable hosting and virtualization services that far exceed small- and mid-sized businesses’ in-house capabilities.

When businesses decide to outsource hosting of their mission-critical servers, they are responding to a strategic opportunity—one that will boost their corporate competitiveness while enabling them to recoup a large savings and improve productivity. As budgets tighten further over the next decade and outsourced hosting gains widespread acceptance, there will invariably be a trend toward small- to mid-sized businesses opting to own no IT assets at all.

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