Making the case for a managed power service provider

Schneider Electric - The advent of managed IT services has opened the door for businesses to focus on their core competencies by engaging external specialists to help keep essential IT services running.

And though only professional services were initially offered, managed IT soon evolved to include infrastructure deployments in which servers and other hardware systems are offered as part of a subscription-based plan. 

What are the benefits of subscription-based IT services, and is there room for this model to expand?

Benefits of subscription-based IT services 

The key benefit of a subscription-based service for businesses is clear: It alleviates the need for capital spending, allowing the end-customer to get ahead without being bogged down by hefty up-front costs.

Managed service providers (MSP) benefit, too, as this shifts them away from a "feast or famine" routine to one with predictable revenues where it becomes significantly easier to run the business and plan future investments.

With the benefit of economy of scale, service providers gain deeper competency and can implement advanced monitoring to gain visibility over multiple locations from a single operational centre.

The vast treasure trove of data also offers deeper insights into the health and performance of a particular environment, allowing them to deliver enhanced reliability with greater cost-effectiveness to their customer.

Moreover, this extensive knowledge means MSP can sell more effectively by furnishing sales leads with crucial information to drive sales. For example, they would be one of the first to know when a UPS battery is failing, or if power utilisation is projected to exceed the threshold of acceptable protection and can make the appropriate recommendations.

Why managed power services

One niche that is largely untapped would undoubtedly be the managed power services segment, where an MSP is tasked to manage the power infrastructure within data centres, branch offices, or edge computing sites where uninterruptible power supplies (UPS) are utilised.

Unplanned downtime typically results in a direct hit on revenues in today's always-on environment. This means that the uptime of systems is of paramount importance. Providers that manage subscription-based services for power infrastructure can hence add tremendous value to their customers by ensuring that systems keep running.

This can be achieved through proactive maintenance or actively rectifying weak links within the power infrastructure. As the reliability of mission-critical sites increases, customers can confidently focus on their core competencies instead of keeping IT running for a win-win arrangement.

Finally, it is worth noting that even relatively small managed power provider with minimalist operations can thrive by partnering with vendors that offer other services such as technical support.

Unencumbered by the need to provide on- site IT support, such an MSP can expand its reach to serve more customers beyond the immediate vicinity, covering a much larger geographic region through remote management and automation.

Read more about how an MSP can set up a managed power services practice with "The essential guide to growing your business with managed power services" from Schneider Electric here.