What You Need to Know When Working with Managed IT Service Providers
Running a business these days means relying heavily on technology. From email and websites to complex software and data storage, IT is the backbone of most operations. But managing all that tech can be a real headache. That's where Managed IT Service Providers (MSPs) come in. They handle your IT so you can focus on running your business. But how do you know you're getting what you pay for? That's where Service-Level Agreements, or SLAs, are crucial. Let's jump into what SLAs mean in the world of Managed IT and why they matter.
What are SLAs with Managed IT Providers?
A service level agreement (SLA) with an IT service provider is a contract that spells out exactly what services they'll provide, how well they'll perform, and what happens if they don't meet expectations. It's a promise in writing, ensuring you get the IT support you need.
Think of it like hiring a mechanic to keep your company vehicles running. The SLA would detail what services they'll provide (regular maintenance, repairs, etc.), how quickly they'll respond to breakdowns, and what happens if a vehicle is out of commission for too long.
Here are some common things SLAs with MSPs usually cover:
Specific Services: This is a detailed list of everything the provider will do. This might include:
Help Desk Support: Answering employee IT questions and fixing minor issues.
Network Monitoring: Keeping an eye on your network to prevent problems.
Cybersecurity: Protecting your systems from viruses, hackers, and other threats.
Data Backup and Recovery: Ensuring your data is safe and can be restored if lost.
Hardware and Software Management: Keeping your computers and software up-to-date. We talk about this more in our blog “The Essential Guide to Patching for Small Businesses”.
Performance Standards: This sets clear expectations for how well the services will be delivered. Examples include:
Uptime: How often your network and systems are actually working (e.g., 99.9% uptime means very little downtime).
Response Time: How quickly the provider will respond to a support request (e.g., within 1 hour for critical issues).
Resolution Time: How long it takes to completely fix a problem.
Measurements: This explains how the provider will track their performance. They might use monitoring tools, ticketing systems, and regular reports.
Consequences (Penalties/Credits): This outlines what happens if the provider doesn't meet the agreed-upon standards. This could include service credits (a discount on your bill), refunds, or even the right to terminate the contract.
Why do SLAs matter with Managed IT?
SLAs are essential for several reasons:
Clear Expectations: They ensure both you and the IT provider are on the same page about what services will be provided and how well they should perform. No more vague promises or misunderstandings.
Accountability: SLAs hold the IT provider responsible for delivering on their promises. If they don't meet the agreed-upon standards, there are consequences.
Protection for Your Business: If your IT systems go down or have serious problems, it can cost your business time, money, and customers. SLAs give you a way to get compensation if the provider's performance is subpar.
Focus on Your Core Business: By having a clear SLA, you can trust your IT provider to handle things effectively, allowing you to focus on what you do best.
Peace of Mind: Knowing you have a solid SLA in place provides peace of mind that your IT is in good hands.
Tips for Negotiating Better SLA Terms with Managed IT Providers
Negotiating an SLA is a crucial part of choosing an MSP. Here are some tips to help you get the best possible terms:
Know Your Business Needs: Before talking to providers, understand your specific IT requirements. What systems are critical? How much downtime can you tolerate? What are your security concerns?
Research Different Providers: Don't settle for the first provider you find. Compare different companies and their SLAs. This gives you leverage in negotiations.
Focus on What Matters Most: Prioritize the metrics that are most important to your business. For example, if minimizing downtime is critical, focus on negotiating a high uptime guarantee.
Don't Be Afraid to Ask Questions: Don't hesitate to ask the provider to explain any part of the SLA you don't understand. Get clarification on things like response times, resolution times, and escalation procedures (how problems are handled if they can't be fixed quickly).
Negotiate Response and Resolution Times: These are crucial. Aim for faster response times for critical issues that impact your entire business. Also, ensure the resolution times are reasonable.
Understand the Penalties/Credits: Pay close attention to the consequences for the provider if they fail to meet the SLA. Make sure the penalties are meaningful enough to incentivize good performance. Service credits are common, but sometimes you can negotiate for refunds or other forms of compensation.
Look for Proactive Services: Some providers offer proactive services like regular security assessments, preventative maintenance, and strategic IT planning. These can help prevent problems before they occur.
Get Everything in Writing: This is essential. Make sure all agreed-upon terms are clearly documented in the final SLA.
Review Regularly: Don't just file the SLA away after signing it. Review it periodically to ensure it still meets your needs and that the provider is meeting their obligations.
Example of a Key SLA Metric: Uptime
Let's look more closely at "uptime," a common and important metric in SLAs. Uptime refers to the percentage of time your systems and network are operational.
99% Uptime: This might sound good, but it translates to about 3.65 days of downtime per year.
99.9% Uptime: This is better, resulting in about 8.76 hours of downtime per year.
99.99% Uptime: This is excellent, with only about 52.56 minutes of downtime per year.
As you can see, even small differences in uptime percentages can have a significant impact on your business.
How MSP Align Can Help with SLA Management
Navigating the world of IT service providers and SLAs can be complex and time-consuming. That's where MSP Align comes in. MSP Align assists businesses in sourcing, comparing, negotiating with, and managing IT service providers.
Sourcing and Comparison: MSP Align helps you find the right managed IT service provider for your business needs. We conduct thorough research and provide comparisons based on service offerings, pricing, and SLA terms, saving you valuable time and effort.
Negotiation and Contract Review: MSP Align goes beyond simply providing information. We offer negotiation support and contract review to ensure you get the best possible terms in your SLAs. This includes cost negotiation, ensuring you're getting competitive pricing.
Ongoing Performance Monitoring: MSP Align doesn't stop after the contract is signed. We provide ongoing performance monitoring to ensure your IT support provider is meeting their obligations. This includes tracking key metrics and providing regular reports.
Proactive Renewal Negotiations and Strategic Oversight: MSP Align also assists with proactive renewal negotiations to ensure you continue to get the best value from your IT provider. We also provide strategic oversight through quarterly business reviews, helping you align your IT strategy with your overall business goals.
Reduced Management Burden: By handling the sourcing, negotiation, management, and oversight of your IT service provider relationships, MSP Align significantly reduces the management burden on your internal team, allowing you to focus on your core business.
MSP Align offers services designed to save clients time, reduce risks tied to selecting and contracting Managed Service Providers (MSPs), optimize IT costs, and lessen the burden of managing IT service providers.
SLAs are a vital part of any relationship with an IT service provider. They provide clarity, accountability, and protection for your business. By understanding what SLAs are, why they matter, and how to negotiate effectively, you can ensure you're getting the IT support you need to succeed. Using a service like MSP Align can further enhance your ability to source the right business IT services, negotiate favorable terms, and monitor ongoing performance, giving you greater control over your IT investments and freeing up your time to focus on your core business. So, when choosing an MSP, don't just focus on the price. Pay close attention to the SLA – and consider partnering with MSP Align – it's your guarantee of quality service and strategic IT management.