Data is the centerpiece of any successful business operation. It drives strategic decision-making, improves customer experiences, and gives insights into future trends. Entertainment companies like Netflix use data to influence 80% of viewed content through recommendations that individuals are likelier to enjoy. Meanwhile, grocery stores like Kroger use data to stock shelves, customize coupons, and track purchase behavior to better serve customers.
There are many ways that businesses can take advantage of data. However, managing a large amount can be challenging and requires expert knowledge of complex infrastructure and analytics. That’s why many businesses are turning to data management to ease that burden. This week we’ll discuss managed data services, how they relate to MSPs, and 8 of the top ways they can help your business.
What Are Managed Data Services?
Managed data services refer to outsourcing data management duties to a third-party company that’s experienced with handling it. That redirects the burden of the business, allowing them to focus more on their core functions while everything is handled for them in the background. Some services include data storage, maintaining backups, compliance, and analytics, among other tasks.
What Is the Difference Between Managed Data Services and Managed Services?
“Managed data services” and “managed services” are two terms that reference different combinations of IT service offerings. While they share some similarities in what’s provided to clients, there are a few key differences.
Managed Services: This is a broad term to describe a wide range of IT services offered by a third-party managed service provider (MSP). That can include software support, network security, helpdesk services, and system administration. Data management services can also be a part of the package.
Managed Data Services: This is a specialized subset of managed services addressing an organization’s data needs. While handling data can fall under a wider managed services umbrella, managed data services are designed to focus on everything related to its usage, integration, management, and security.
Both are offered to outsource specialized tasks to IT experts better equipped to handle technology challenges. They aim to improve productivity and efficiency while being more cost-effective than doing in-house.
8 Ways Managed Data Services Can Help Businesses
1. Data Security
With data security threats coming in many forms, ranging from web browser extensions to malicious downloads, cybersecurity is a high priority for most businesses. Managed data services can better consolidate and monitor datasets to better see what’s being accessed and how it’s being used.
2. Scalability Services
Scalability often goes together with business growth. Data needs can change monthly, whether internal usage or customer behavior. Scaling also factors in more significant market shifts, allowing organizations to integrate new cloud solutions and tracking strategies to ensure they keep up with the latest demands.
3. Quality Control
Storing low-quality data can lead to more work, whether digging through to find something specific or analyzing a larger data pool to understand trends. With better data management, low-quality information can be separated from higher-value data, making it easier for businesses to make fast and effective decisions.
4. Data Analytics
Data analytics is an important part of any business strategy as it helps drive smart decision-making to serve customers best. Companies that put it to use better see an average of 5.32% increase in their annual revenue. It also removes an average of 4.85% of operational costs. That makes managed data services a cost-effective choice just for the analytics alone.
5. IT Compliance
There are many types of data handling requirements that different industries must follow. Some are stricter than others and may have both financial and legal consequences if done poorly. Having a data management expert reduces the risks and can prevent a business from being held liable if there’s a data breach.
6. Strategic Advice
Regardless of business size, resource utilization is always an important topic. Every company has limited employee counts, skillsets, infrastructure, and budgets. Using managed data services helps use and focus those efforts on data strategies that allow for better resource utilization. They can also provide insight into future initiatives and technology investments.
7. Data Backup & Recovery
By outsourcing data management, businesses can be assured their valuable data is backed up routinely via the cloud and that a recovery plan is in place if a disaster happens. With nearly 70% of small businesses closing within a year of a significant data loss, having a backup strategy is critical to the longevity of any company.
8. Improved Infrastructure
Technology infrastructure can be difficult to manage, especially when it connects multiple elements of an organization. Managed data service providers are familiar with tech beyond just data management, allowing them to set up solutions that are integrated with the rest of a business’s functions.
Manage Your Data With ITonDemand
Data is one of the most critical assets for any business. As data volume and complexity continue to grow, it’s becoming increasingly difficult for companies to manage it independently. But with ITonDemand’s decades of experience and expert on-demand staff, you can use your digital information to its full potential. Our managed data services free up your time and resources while ensuring your data is safe, accessible, and used effectively. Take control of your data with support from ITonDemand.