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At some point, every small to mid-size company will undoubtedly face one of the biggest IT challenges that all companies face - cost. To leverage the power of modern technology and to give yourself the competitive advantage you need to grow, you must be willing to invest heavily in such a privilege.

Larger companies often have the required financial backing to invest into technology research and implementation. However, for smaller businesses, keeping up with the larger players in the same space can become rather difficult without having comparable resources.

Only 46% feel that their budget allows them access to the same technology tools as a large company. IPSOS, Independent Consulting Company

Most organizations think that their technology costs end at the time of their hardware purchase. However, research shows that the cost of hardware typically represents less than 20% of the total cost of ownership (TCO), with technical support, maintenance and labor costs accounting for the remaining 80%. This means that a $1,000 hardware purchase could potentially cost the business more than $15,000 over the first three-years of the hardware’s life. A cost of $15,000 over the course of three-years may not seem like a great deal for a business-changing technology investment. However, the type of technologies that greatly benefit businesses rarely cost only a $1,000.

The average US company IT budget is $327,798. Several research firms recommend that
4% to 6% of revenue should be spent on IT as a company matures. 2016, Spiceworks IT Spending Survey

These statistics may explain why many small businesses feel as if the tech playing field is less than even.

Managed Service Providers (MSPs) are able to bridge this gap by offering their expertise in supporting various technologies at lesser costs to businesses. For small & mid-size companies struggling with justifying these costs, MSP solutions provide the initial infrastructure required to support production environments as well as a trained technology team to provide uninterrupted support. When you hire an MSP, you automatically save on the upfront costs related to the purchase and implementation of the necessary hardware & software required for the ongoing support of the production environment. In the long-term, SMBs can save considerably due to the MSP taking care of all the constant maintenance, support, and configuration requirements.

Nearly 50% of MSP users cut their annual IT costs by 25% or more, while 50% cut their annual IT costs between 1% and 24%. CompTIA Study

Thus, MSPs provide excellent, effective solutions for businesses that are unable to maximize their IT potential due to cost challenges. With MSPs, you will have fixed monthly IT costs, 24/7 access to IT experts, and long-term IT planning, maintenance, and support. This means that you can actually go on to earn more money since you can focus solely on growing your business, knowing that the MSP has your IT covered.

Topics: Technology, Solutions, Managed Services, IT