Monthly Archives: December 2010
Are Managed Services Just Insurance?

When we talk to people about managed IT services we frequently hear something like this: “So we pay a little each month to ensure that we’re covered when something bad happens, rather than paying a lot when it happens. That’s basically insurance, right?” Sort of. We don’t think of it as insurance because we proactively invest in processes, monitoring, and tools to prevent bad things from happening. I started to write that insurance doesn’t proactively try to prevent problems, but that’s not exactly true.
At a macro level, the Insurance Institute for Highway Safety (IIHS) tests cars and pushes for laws to improve vehicle safety. And though it is not directly tied to insurance companies, certification by the Underwriters Laboratories (UL) is often a prerequisite for items being installed into an insured environment. Insurance companies don’t appear to do much on a micro level though. For instance, would an annual home inspection help prevent homeowners insurance claims? If so it seems like that would be a smart investment. continue reading

