Why Should My Company Consider Managed Services?

Time to read 6 min

In this episode of Modern Marketing Messages, Paul Kocan, Vice President of Managed Hosting at Americaneagle.com, shares his expert insight into the world of managed services. With our host, Taylor Karg, Paul discusses what managed services actually means, what’s included in each type of service, how they can help businesses unlock new potential, and much more.


For captions, click "CC" within the video player. To read the transcript of this episode, click the transcript link within the description of the video on YouTube.


Paul Kocan, Vice President of Managed Services

Paul began his journey in networking for United Airlines and later transitioned into consulting for major enterprises like Sprint and financial institutions. His expertise lies in infrastructure and operations, including servers, networking, storage, and cybersecurity. Paul discusses the tension between IT operations, which resist change to maintain stability, and innovation teams, which drive change for customer value. He highlights the importance of balancing these forces through technical and cultural practices. Paul also expresses enthusiasm about Americaneagle.com’s veteran staff and their specialized skills in managing web development and cybersecurity.

What are Managed Services?

Traditional IT refers to in-house teams managing a company's technology needs, such as websites or ERP systems, by hiring engineers, operators, and architects to design, support, and run everything internally. Managed services, on the other hand, involve outsourcing certain key IT resources to a third-party partner. This external partner manages those services on behalf of the company, often offering expertise or efficiencies that the company may not be able to achieve in-house. Managed services provide a way to offload specific technology tasks to trusted external providers.

In Paul’s experience, companies often adopt a mix of in-house and outsourced services based on their size and complexity. He observes a cyclical trend where businesses distribute services, lose control, pull them back in, and eventually redistribute when internal processes become too rigid or overwhelming.

The Different Types of Managed Services (Web Hosting, Cloud Hosting, and Hybrid)

There are three different types of managed services – web hosting, cloud hosting, and hybrid solutions. Paul explains that Americaneagle.com has been a leader in web hosting for nearly 30 years, offering expert hosting services to allow companies to focus on their core competencies.

Cloud hosting, provided by major companies like Amazon, Google, and Microsoft, offers flexible, scalable services, but adds complexity in terms of cost management and service integration. Paul highlights how companies often partner with managed service providers to handle cloud operations, security, and multi-cloud environments, which can otherwise be overwhelming.

Hybrid hosting combines traditional IT services with cloud solutions, integrating them through well-coordinated processes. Managed services help companies outsource specific technical tasks, allowing them to focus on their primary business goals while reducing costs and operational challenges.

Why are Managed Services Becoming Increasingly Popular for Businesses?

The growing popularity of managed services stems from cost efficiency, flexibility, and scalability. Businesses, both small and large, find it impractical to hire in-house staff with expertise in various technologies. Managed services allow companies to access specialized skills, enabling innovation and growth.

Additionally, Paul emphasizes the focus factor, where internal IT teams can be bogged down with operational issues, such as outages, which distract from strategic initiatives. Managed services help businesses keep their core teams focused on growth, preventing disruptions from hindering their progress and day-to-day operations.

How Much Does Managed Services Cost?

Paul explains that the cost of managed services can vary widely, from being cost-effective to extremely expensive, depending on the specific service and contract terms. He highlights that long-term managed service contracts can sometimes trap companies in expensive, inflexible arrangements. Americaneagle.com aims to differentiate by offering flexible, reasonably priced managed services.

Paul also discusses the complexity of cloud hosting costs, where workloads can become unexpectedly expensive if not optimized for cloud environments. While cloud services can be efficient and scalable, many companies are reconsidering cloud use due to high costs and are moving some workloads back on-premises for better control.

Modern Marketing Messages podcast graphic with quote by Paul Kocan about cost savings with cloud managed services

Benefits of Adopting Managed Services

There are numerous benefits to adopting managed services, including enhanced confidence in systems performance, expert guidance, and comprehensive reporting on security, performance, and costs. Managed services offer valuable road mapping for future growth and ensure compliance with security regulations, which helps reduce risks and improve cybersecurity preparedness. Paul emphasizes that managed services also aid in obtaining cyber insurance by following industry standards, providing a significant safeguard for small and medium-sized businesses, especially in preventing the devastating effects of cybersecurity breaches.

Examples of Clients Benefitting from Managed Services

Paul shares two examples of companies benefiting from managed services. In one case, a company switched to a more efficient and secure setup after their current solution failed. Americaneagle.com implemented the changes quickly, reducing the client's cloud bill, even after the cost of managed services.

In another instance, a company moved workloads to the cloud but lost key staff. Americaneagle.com took over management, identifying and fixing performance and security issues. Over time, the client's system improved, costs decreased, and visibility increased, allowing their team to focus on development without worrying about operations.

Common Challenges Businesses Face When Considering Managed Services

The main barrier is fear of losing control, with some employees worried about job security or losing their role as key operators. Others feel hesitant to hand over control until they’ve addressed existing issues, likening it to “cleaning the house before the maid comes.”

There are also cost concerns, where companies hesitate to invest in managed services until a major outage occurs, which often results in more financial loss than the service would have cost. Paul suggests focusing on strategy and long-term improvements to overcome these fears.

Future Trends in Managed Services

Paul identifies a key future trend in managed services: managing the complexity of multi-vendor environments. As cloud providers expand and third-party services proliferate, businesses increasingly rely on various platforms, applications, and providers to run a single system, such as ecommerce sites or headless CMS setups.

Americaneagle.com is preparing to offer multi-vendor managed services, ensuring clients can effectively manage and troubleshoot these complex systems. Paul emphasizes the growing prominence of headless CMS and how Americaneagle.com is adapting to support these evolving needs.

Work with a Hosting and Managed Cloud Services Provider

Americaneagle.com is experienced in managing hosting in the cloud, on premises, or in a hybrid environment. We provide 24/7/365 managed hosting services from our state-of-the-art, PCI-compliant data centers, ensuring unparalleled security. With our round-the-clock managed services, you can optimize, secure, and scale your digital infrastructure seamlessly.

Learn more about our hosting and managed cloud services and contact us today to get started.

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Brought to you by Americaneagle.com, a digital marketing and web design company, Modern Marketing Messages discusses the latest and greatest in both online and offline marketing tactics, strategies, and trends. We take a deep dive into anything and everything marketing, speaking to the best and brightest minds in technology and marketing. Episodes will cover different areas of focus, from advanced SEO to paid search, personalization to influencer marketing, and everything in between.

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About the Author

Taylor Karg

Taylor
Karg

Taylor Karg is Americaneagle.com’s Marketing Content Writer. She graduated from the University of Missouri with a bachelor’s degree in Journalism. Over the years, she’s gained experience writing for B2B brands across a variety of industries. Taylor prides herself on her ability to tell a story – and having fun while doing it. When not interviewing or writing, Taylor can be found eating tacos and watching the latest Netflix, Hulu or HBO series.