Demystifying common myths about Application Managed Services

Enterprises are increasingly adopting managed services to digitize their business processes, modernize their IT infrastructure, and boost productivity and scalability. As the global shift toward cloud computing accelerates, managed IT services are proving crucial for reducing infrastructure costs. By leveraging professional Application Management Services (AMS), businesses can more efficiently navigate the rapid pace of digital transformation.

However, despite their critical role in modern operations, many misconceptions about managed services exist. These myths often hinder organizations from fully realizing the benefits of partnering with a managed services provider. Application Managed Services are also wrongly equated with standard software development services. While there is some overlap in the required skills and technologies, AMS exists within a unique ecosystem defined by its ongoing nature and specific challenges.

This blog aims to help businesses recognize the true value of managed services by dispelling common myths and exploring how a disruptive AMS model can assist organizations in more effectively planning, budgeting, and forecasting IT expenses.

Myth 1: AMS is just another form of software development services

One of the most common misconceptions about AMS is that it merely represents a specialization of software development services. While there are similarities in required technologies and skills, the real distinction lies in the operational ecosystem of AMS. Unlike traditional software development, which has clear start and end points, AMS is a continuous cycle. It starts when a project concludes and extends indefinitely. This perpetual nature necessitates a different approach to service delivery, one that focuses on long-term relationships and ongoing support.

More insights: How managed services drive business growth and maximize ROI?

Myth 2: AMS projects have a defined end

Many believe that AMS projects can be defined by start and end dates, similar to traditional IT support. In reality, Application Management Services operate in a perpetual cycle. If vendors meet their service level agreements (SLAs), their relationship with clients can last for an extended period. This is a significant departure from the time-bound nature of projects, emphasizing the importance of sustained performance and relationship management in AMS.

Myth 3: Errors in AMS have minimal consequences

Another myth is that mistakes made in Application Management Services carry little weight compared to errors in development projects. In fact, errors in AMS can have serious repercussions since they involve managing systems that are already in production. Unlike software development, where mistakes can often be identified and corrected during multiple checkpoints, a misstep in AMS can disrupt a client’s business operations.

The stakes are high, requiring rigorous attention to detail and effective problem-solving. Therefore, it’s important to partner with a managed services company with extensive experience in your industry. Experienced providers are likelier to have established best practices and processes that enhance operational efficiency and reliability.

Myth 4: AMS work is monotonous

It’s a common belief that the work involved in AMS is monotonous, primarily revolving around resolving support tickets. While AMS does include routine tasks, it also includes a wide range of activities, including incident prevention, alignment with business objectives, and continuous system upgrades. Rather than being limited to transactional support, effective AMS requires a proactive approach that incorporates ongoing assessment and improvement.

Myth 5: AMS involves outdated technologies

Some assume that AMS deals exclusively with technologies that are nearing obsolescence. While it’s true that systems developed today may use technologies that will evolve over time, AMS teams continuously implement updates and improvements. The challenge lies in balancing the management of existing systems with the adoption of emerging technologies. This requires ongoing education and skills development for AMS professionals, ensuring they remain current with industry advancements.

Rethinking AMS: Moving beyond traditional models

Organizations need to rethink their approach to Application Managed Services (AMS) to address these myths effectively. The traditional model tends to focus narrowly on ticket lifecycles and reactive issue resolution. In this approach, companies typically identify the required technologies, hire personnel with expertise in those areas, and assign them to specific shifts.

However, this limited perspective can result in several challenges, including low job satisfaction, inefficient resource allocation, and high staff turnover rates. Under this model, as tickets are logged, the shift Service Delivery Manager (SDM) allocates them to available consultants, who then strive to resolve the issues within the specified Service Level Agreements (SLAs). Unfortunately, as long as the SLAs are met, the perceived service quality is often considered acceptable, which fails to address deeper operational inefficiencies and employee morale.

Further readings: Learn how AMS is different from traditional IT support

To create a more effective AMS model and deliver exceptional support and IT operational efficiency, businesses should incorporate the following strategies:

• Preemptive incident management: Develop strategies to identify potential issues before they escalate into support tickets.

• Aligning system support with business goals: Ensure that the AMS team understands and aligns its objectives with the organization’s broader business objectives.

• Protecting tribal knowledge: Implement processes to capture and retain the knowledge gained by team members as they resolve user tickets.

• Focus on reducing ticket volume: Through proactive maintenance and user education, aim to decrease the number of support tickets over time.

• Real-time system monitoring: Utilize telemetry and monitoring tools to gain insights into system performance and proactively address concerns.

• Continuous system updates: Regularly assess and upgrade systems to incorporate the latest features and technologies.

• Cost optimization: Continuously evaluate system performance to identify areas for cost savings.

• Team retention: Foster a positive work environment that encourages team retention and reduces turnover.

• Holistic business process view: Maintain an end-to-end view of business processes to understand better how AMS impacts overall operations.

Choose Confiz as your managed services partner

Application managed services are crucial for enterprises looking to enhance their digital processes, modernize infrastructure, and optimize productivity. However, to fully unlock the potential of managed services, it’s essential to work with a partner who understands the complexities of enterprise Application Management Services.

At Confiz, we bring deep expertise in Data and AI, Cloud Services, Software Development, Microsoft Dynamics 365, and Microsoft Power Platform to help businesses navigate their digital transformation journey. Our unique Service Excellence Ecosystem fosters continuous improvement and ensures efficient, reliable support tailored to your specific industry needs. This approach not only helps your organization stay ahead of technological shifts but also ensures long-term operational success.

By choosing Confiz as your managed services provider, you’re entering into a strategic partnership to drive innovation, enhance efficiency, and foster sustainable growth. Contact us at marketing@confiz.com  for application managed services consulting to elevate your business operations.