What Are Managed Services?

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When a company subscribes to a managed service provider, that service provider manages the network equipment and applications on the customer premises according to the terms of a service-level agreement (SLA) established to meet the company’s unique business needs. Some managed services are also hosted, meaning that the service provider hosts the equipment  in its facility instead of the customer’s, and delivers services to company employees over the WAN (Wide Area Network).


For small and medium-sized businesses (SMBs), managed services provide enterprise class capabilities for a predictable monthly fee—without requiring a large, initial capital investment. Companies that out-source enjoy high levels of network support and availability. This enables the company to forgo the high cost of internal IT staff or enables internal IT staff to focus on strategic activities instead of network support, and pay only for those networking services that they need.


Managed services generally include software, hardware, and other IP networking services. The service provider’s highly experienced technical experts focus exclusively on providing the network services and support that their customers need to meet their business requirements. Companies have the option to out-source some or all of their network management and monitoring tasks and retain control of the rest—even if the equipment is physically located at the provider’s site.

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