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Q:  Customer Service Should Not Be An Issue For Managed Hosting Vendors
 
Successful managed hosting vendors don't need to panic about their customer relationships. If they are successful, they're already providing quality service.
 
There are many good reasons for an enterprise to choose managed hosting services. Increasing the efficiency of its IT department and creating a predictable and manageable budget are examples of the many benefits that a company can gain by selecting a vendor to host its business applications. Yet above all, service remains the cornerstone of managed hosting and the primary difference between vendors and in-house IT departments.
 
No matter how an enterprise chooses to implement business software, it will always want reliable service guarantees. A good service level agreement (SLA) should include distinct remedies and penalties for missing established service levels. While organizations at times create SLAs with their IT departments, these agreements are useful for measurement purposes only. Aside from providing the option to terminate employees, these in-house agreements do not provide recourse for poor service. And termination does not provide a remedy to the problem.
 
A survey published by InformationWeek in November 2001 asked business-technology managers why their companies outsource application hosting to third-party ASPs. Eighty percent of the respondents sited guaranteed performance levels as one of their reasons.
 
Like ASPs, managed hosting vendors live and die by their service level agreements. Missed service levels such as response times, availability levels and other functions could result in costly monetary penalties or even the loss of customers. Hosting vendors that are unable to provide exceptional service are unable to remain in business.
 
The highest levels of service are achieved when the software vendor and the managed hosting provider are one and the same. Unlike other providers, software vendors offering managed hosting services utilize their staff's experience and knowledge of their software applications to provide optimal service. Software vendors know their products better than any other third party, and consequently provide support services no others can match.
 
In today's volatile business environment, organizations are looking for the peace of mind that good customer service brings. Successful vendors needn't worry: Good managed hosting is good customer service.