In the fast-paced world of data-driven businesses, organisations are continually seeking faster and more efficient ways to manage and optimise their data platforms. One critical decision organisations face is the choice between cultivating an in-house database engineering team or embracing the benefits of Database Managed Services. This second article in our mini-series explores some of the key advantages of opting for a Managed Service over hiring and maintaining an in-house team.
Enhanced Cost Effectiveness
One of the most compelling reasons to choose Database Managed Services lies in its cost efficiency. As we described in the first article, establishing and maintaining an in-house team of skilled data engineers involves significant recruitment costs, salaries, benefits, and ongoing training expenses. In contrast, Managed Services offer a predictable, subscription-based model, allowing you to better predict and reduce costs over time.
A study by the UK-based TechMarketView underscores this, revealing a 30% operational cost saving for businesses leveraging managed services over in-house management.
Access to Specialised Expertise
As we saw in article one, the time and effort to recruit, onboard and skill-up a team of engineers can take months. Database Managed Service providers, like Coeo, employ a team of highly skilled professionals with expertise in various database technologies. This ensures that clients have access to a diverse skill set without the need to hire and train specialists in-house. This is particularly beneficial in the rapidly evolving landscape of database management, where staying current with the latest technologies and best practices is crucial.
Scalability and Flexibility
Data management demands are not static; they ebb and flow with business cycles and market demands. Managed Services excel in offering the scalability and flexibility that in-house teams often struggle to provide. Service providers can effortlessly scale services to align with business peaks, such as holiday seasons, or dial back during slower periods. This adaptability is key for maintaining competitiveness in the dynamic UK business environment.
Improved Security and Compliance
Data security and compliance are paramount concerns for businesses, especially considering the strict regulations such as the General Data Protection Regulation (GDPR) in the UK. Database Managed Service providers invest heavily in security measures, including encryption, regular audits, and compliance checks, to ensure that data is handled and stored securely.
Adhering to these standards is often more challenging for in-house teams, which may lack the necessary resources and expertise to keep up with evolving security threats and compliance requirements. Providers can help businesses navigate this complex landscape, mitigating risks and ensuring compliance with data protection regulations.
Focus on Core Business Objectives
Delegating database management to a specialized external provider allows organisations to reallocate internal resources towards primary business goals and strategic projects. This can lead to increased innovation, faster time-to-market, and improved customer satisfaction. Maintaining this competitive edge is crucial for long-term success.
Choosing between Database Managed Services and an in-house team hinges on various factors, yet the benefits of Managed Services are increasingly compelling.
Here at Coeo, we work in partnership with businesses across multiple sectors, including Finance, Insurance, Retail, Consumer Goods, and Professional Services to deliver higher cost efficiency, enable access to our specialised expertise, and help scale data solutions, to allow our clients to focus on their core business objectives.
Read the next instalment and discover tips on transitioning to a Data Platform Managed Services solution.