The network is the backbone of most businesses, facilitating every aspect of operations from front-facing communication to team collaboration to storage. When the network fails, business stops, and the communication lines between teams and customers break down.

Too many small and medium-sized businesses struggle to maintain a fit-for-purpose network with small IT teams and evolving infrastructure needs. However, many SMBs also don’t realize that moving to managed network services not only boosts performance but can also be a more cost-effective approach.

This article takes a closer look at how managed network services work and how they can benefit SMBs.

What Are Managed Network Services?

Third-party managed network services take responsibility for managing and maintaining your network infrastructure, including hardware in their data center, local hardware, and the software that makes everything work. They also provide technical support as needed and deliver continuous performance management, optimization, and cybersecurity.

While you can choose local network setup and management, most often your network will be managed as a virtual network based at one of their data centers. This gives you access to a larger and more sophisticated network setup.

You can utilize managed network services while keeping other elements of your IT infrastructure in-house, but it is often included as part of broader managed IT services, which may also include services such as business-specific software procurement and development, strategic IT consulting, and general operational support.

Benefits of Managed Network Services

Cost-Effective

Managed network services can be the most cost-effective way to manage your network and can keep costs predictable. Constructing a robust network infrastructure comes with a significant up-front cost for hardware like servers and switches, and software like operating systems and firewalls. With managed network services, you are connecting to existing infrastructure, significantly reducing your initial outlay. You also minimize the costs of replacing equipment at end-of-life or expanding your network by managing these through amendments to your service level agreement.

Fewer in-house IT staff means lower costs for hiring, training, and retention. Rather than paying for salaries, benefits, professional development, and other overhead costs, you pay for only the support you need through a service level agreement with your managed network services provider.

With 24-hour monitoring and proactive network maintenance, you save money by reducing downtime, lost productivity, missed sales, and recovery costs.

Security and Compliance

One of the biggest challenges in network management is protecting against cyber threats. It is worth remembering that cyber criminals don’t just target big businesses. According to the U.S. Small Business Administration, 41% of small businesses were victims of cyberattacks in 2023, with an average cost of $8,300. So, insufficient network security can be a major problem for businesses.

For managed network services, cybersecurity is part of their core business, and they are proactive about staying on top of new threats. Therefore, when you use managed network services, you get 24-hour monitoring and real-time threat detection. You also get access to security measures that are often too expensive or complex for SMBs to implement on their own, such as intrusion detection systems and endpoint protection.

Security is also essential for compliance, but it is not the only consideration. There are also questions about regulations, such as HIPAA, GDPR, and industry-specific standards. Managed network services are experts at navigating these requirements and implementing controls that also provide necessary audit trails. As data protection now impacts all businesses, managed network services should offer robust, compliant solutions that protect against both the real cost and reputational cost of data breaches.

Reliability and Performance

A managed network has the potential to outperform an in-house network thanks to 24/7 monitoring that makes it possible to detect and resolve problems before they impact businesses. This includes out-of-business-hours monitoring, which is essential since many businesses operate across time zones. You can expect proactive maintenance rather than reactive “fix it when it breaks” approaches, which is often how smaller in-house teams are forced to work.

As your business grows, you can expand your network capacity quickly with a change to your service level agreement, without the bottleneck of investing in and installing new network infrastructure.

Maintain Focus

Every business needs great IT infrastructure, but most small and medium-sized businesses lack IT experts. Investing in IT infrastructure and staff can be a distraction from core business operations and often does not play to the strengths of business leaders. How do you hire the best network manager for your business and authorize infrastructure investment when you don’t really understand how managed network services work?

Outsourcing to a managed network services provider means that you can manage your network through a simple service level agreement, letting the experts deliver what you need. This allows SMBs to focus investment and attention on core business operations, doing more of what they do best.

How to Outsource Your Network

If you are considering outsourcing your network management, start by assessing your needs so you can find a partner that meets all your requirements.

Take a close look at your current in-house IT setup, including infrastructure and the team you need to manage it. Identify your strengths and pain points. Then consider what the future looks like for your business, where you need to grow, and where you have the potential to consolidate. Also consider the compliance issues that apply to your business.

This can form the basis for your request for proposal as you speak to local providers. Based on what they come back with, you can determine whether their solutions align with your budget and service expectations. When you find a service provider you like, perform due diligence by checking their service portfolio, industry experience, and client references or reviews.

When it comes to signing the service level agreement, ensure that the terms and conditions are clear about responsibility, response times, and the process for scaling your service if required.

If you are looking for managed network services in the St. Louis and Columbia, Missouri, and Western Illinois areas, contact Da-Com and see how our team can support your business.