There are lots of us good computer guys out there that our aim is to take care of the customer – only sale them what they need, give them good advice, don’t overcharge or pad the bill, and don’t use used parts unless it is agreed upon by the customer. But unfortunately there are scam artists out there. Computer guys that never solve the problem but keep collecting the check. Computer guys that use used parts but don’t inform the customer and charge like the part is new. Computer guys that push a product just to make a sale. The computer industry is not regulated similiar to the auto repair industry, but probably will be soon, and maybe should be.
But in the past couple of years or so, there has been a new wave of computer guys out there that are solely looking for the quick buck and easy money in a particular fashion. And that quick buck is in the name of “Managed Services”. Managed Services in itself is neither good or bad. It is a loose term roughly meaning remote monitoring for trouble spots in computer hardware, providing updates, and making the necessary and needed adjustments or replacements.
Managed Services was developed in response to the sheer number of computers and servers used by large companies, and the near impossiblility for a single person or even a team of people to constantly survey hardware and monitor for problems. Managed Services are often provided by a third party, and up until the very recent past was very costly.
There are small companies that could also benefit from this type of service and the peace of mind it can afford. These small businesses hope that they can avoid costly server outages and that downtimes can be minimized, or maybe avoided, due to this offering. But the service was cost prohibitive and out of reach for many small companies.
In response to this market need, there are a new breed of Managed Service providers that have made it affordable for small and SOHO (Small Office Home Office) companies to afford the service. Many of these providers are offshore.
These newer managed services providers like to partner with small computer shops with a contract, and in exchange for these contracts, the computer shops receives exorbitant amounts of revenue for every customer they sign up. And there is the problem. From Glenn Frey’s song Smugglers Blues:
It’s the lure of easy money, It’s got a very strong appeal
The lure of easy money. Google “Managed Services” and you will found many providers that offer this service to small companies. And what’s their pitch? “Easy money” for the computer guy. And next to the nothing about the benefit to the customer.
I have been approached by numerous Managed Services companies over the years and the pitch is the same, once again “easy money”, and I have rejected these companies. Unfortunately I also have known computer guys in my area that did not reject these offers. But these same guys will spend 30 seconds, if that much, on learning and understanding a customer’s needs, and then they spend 30 minutes on a sales pitch for managed services.
There is also a potential real risk here to the small business that signs up for these managed services . The scenario is comparable to the way fitness clubs like to sign up X amount of people, but only plan for a small percentage to actually use the gym. Once again, easy money. But what happens if more than the small percentage tries to come to the gym? Overcrowding, long waiting lines for equipment, and in some cases, turned away.
A similar situation can occur for a one-man computer shop that signs up too many customers up for their managed services offering, but then they have multiple customers with simultaneous issues. Real disaster can occur for the small business if the computer guy is a greedy con artist; because of instead of using the money from the Managed Services contracts to help ensure zero downtime and to hiring good IT folks to solve problems as they arise, he simply pocketed the money. Which in the end leaves the small business stuck with a dead server and downtime.
Managed Services can be a great product. But Buyer Beware. I recommend having a mutual discussion with the computer company offering it, and make sure it really benefits you. And if you think it benefits you, make sure the company you are contracting with can fulfull their end of the bargain. Otherwise, look for another computer managed services company.