In the interview with Markus Balzuweit, CEO at CTO Balzuweit GmbH.

Many companies in the upper mid-market segment have made significant progress in terms of digitalization. The coronavirus pandemic acted as an accelerator, making processes within companies more transparent and faster. Now, in light of rising cybercrime, many firms are considering the use of managed services and the associated primary use of cloud solutions to take the next step in digitalization. CTO Balzuweit GmbH has been focusing on solutions to automate, accelerate, and make document-based processes more transparent for many years. The ultimate goal is to minimize paper chaos and optimize compliance. In an interview with Markus Balzuweit, CEO at CTO, we discuss managed services, the differences between individual solutions, and the benefits this operating model ultimately offers to customers.

DIGITAL FUTUREmag: Mr. Balzuweit, managed services allow companies to outsource IT tasks externally. This advantage has long been recognized not only by larger companies but also by small and medium-sized enterprises (SMEs), which now want to leverage this benefit for themselves. What makes managed services appealing to companies in the first place, and what advantages do they offer?

Markus Balzuweit: I see clear advantages in using managed services. Our customers particularly appreciate the benefits of predictable costs. Most managed services are billed monthly via subscriptions or flat rates, giving companies clear and predictable expenses for their IT solutions. This structure enables improved budget planning and financial stability by minimizing unexpected costs due to unplanned IT issues. The clear and defined services we provide in the area of managed services for our customers also create a clear understanding of what they can expect from their business. This contributes to a high level of transparency and trust in the services we provide, which in turn strengthens the relationship between the service provider and customers.

By outsourcing IT tasks to a managed service provider, I see an additional advantage in relieving the burden on employees, especially in times of skilled labor shortages. The need to use internal IT staff for the management and maintenance of systems is significantly reduced. This gives employees more time and space to focus on strategic projects and innovative solutions that can increase the value creation of our customers' companies.

DIGITAL FUTUREmag: Let’s briefly discuss why CTO Balzuweit GmbH decided to include managed services in its portfolio.

Markus Balzuweit: As a family-owned business and established ECM provider with more than 30 years of experience, we closely monitor the developments of the constantly evolving market. Only in this way can we continue to meet our customers' increasing requirements in the future. Due to our customers' growing demand for flexible cloud solutions that increase efficiency, enhance security, and optimize costs, we have decided to also offer Managed Services. The proactive approaches of our Managed Service solutions enable potential problems to be identified and resolved at an early stage, thereby minimizing downtime and ensuring the business continuity of our customers. In addition, by expanding our offering to include Managed Services, we can strengthen customer relationships and provide them with holistic support that goes beyond the traditional operating model. The decision to include Managed Services in our portfolio is therefore another step in our corporate strategy to offer our customers comprehensive service based on our many years of expertise in the ECM field and our innovative solutions. Only in this way can we meet our customers' changing needs and provide them with reliable and future-proof IT solutions.

DIGITAL FUTUREmag: Do you offer Managed Services only for specific solutions or for your entire ECM solution portfolio?

Markus Balzuweit: In the area of Managed Services, we offer established packages with a fixed scope that can basically cover everything that is required. However, to fully meet the specific requirements of our customers, we naturally design the services flexibly and according to their needs. For example, the exact design of checks and many other components can be defined individually. Our goal is to offer a tailor-made package that meets the specific needs and business objectives of each customer.

The areas can vary. For example, services in the area of file and workflow solutions can make business processes more efficient. In the area of archiving solutions for SAP and other ERP systems, on the other hand, our customers are protected from data loss through the Managed Service and are always up to date with regard to revision security and compliance guidelines. Or our customers save time and money by using our service in the area of digitization solutions. By converting paper documents into digital formats, not only is paper consumption reduced, but access to and management of the data also becomes faster and easier. Our focus is always on providing our customers with innovative solutions that optimize their document-based business processes and strengthen their competitiveness. Whether it's about capturing and managing documents, introducing automated workflows, or implementing cloud-based solutions, it doesn't matter.

DIGITAL FUTUREmag: What does the Managed Service of CTO include?

Markus Balzuweit: As already mentioned, our managed service offering is extremely versatile, and the details always depend on the specific solution. Furthermore, it is important to distinguish whether the managed service is operated on-premise or via hosting. With the increase in cloud users and providers, managed services operated via hosting are currently very much in demand. To meet the requirements in this area, we have developed a Silver and Gold version. The Silver version is aimed at customers who need a reliable and professional infrastructure for their applications and data. Customers receive a secure hosting environment with continuous monitoring and support. The services included include, for example, regular system check-ups to ensure stability and performance. This is complemented by extended SLAs and response times as well as quarterly service meetings on software quality, support tickets, and optimization options. The Gold version, on the other hand, offers extended and more comprehensive support for more demanding customers with special requirements. This affects, for example, the frequency of system check-ups and service meetings. In addition to the services included in the Silver version, it also includes ongoing maintenance and implementation of technical updates. Optional here is also a connection to the customer's existing ticket system.

Overall, with our hosting services, we offer comprehensive support for customers who need a reliable and scalable IT infrastructure. This ensures that applications and data are hosted securely and efficiently, allowing the customer to focus on their core business.

DIGITAL FUTUREmag: Let’s take a closer look at the ever-present topic of cybercrime. How secure are my data and systems in CTO’s hosting?

Markus Balzuweit: Naturally, the security of customers’ data and systems must be the top priority in managed services. That’s why, for the managed services we offer to our customers via hosting, we have implemented both IT and physical security measures that we always guarantee, regardless of the agreed services.

We have therefore decided to host our Managed Services across two data centers in Frankfurt am Main, both certified to ISO 27001 and ISO 27018. This ensures compliance with European data protection laws and standards, requiring appropriate measures to safeguard data. Another advantage is the redundancy of data and systems across both data centers, which guarantees failover protection, high system availability, and improved recoverability. Their direct proximity to the German internet exchange point also enables “short paths” to relevant cloud providers and content delivery networks, ensuring efficient and reliable data transmission. To protect data during transmission, customer systems are always connected via a so-called Virtual Private Network (VPN). These secure tunnels encrypt communications and shield data transfers. Experience shows that, with these comprehensive security measures and certifications, data and systems in our Managed Services are often better protected than they were previously under the customer’s own management.

DIGITAL FUTUREmag: That sounds like a well-rounded solution. But what can customers expect once they’ve decided to use CTO’s Managed Services?

Markus Balzuweit: Typically, we begin with our onboarding process. This is crucial to ensure the customer can fully leverage the Managed Service and that collaboration runs smoothly. Just like the Managed Service itself, the onboarding process naturally depends on the specific solution and the customer’s requirements. However, to understand needs and expectations, we usually start with a detailed requirements analysis, based on which we create a tailored plan for the service and IT infrastructure. System configuration, data migration, and other necessary steps then mark the beginning of the Managed Service implementation. This also includes testing on both the CTO side and the customer side. Only in this way can we ensure everything runs smoothly and meets the agreed SLAs. The testing phase also serves to train the customer and their team.

It is only once all details have been clarified during the project and after the software solution goes live that the so-called transition takes place. This is the formal handover of support to our team, which manages customers in the Managed Services area. The expert team then delivers the services defined in the Managed Service, ensures smooth operations, and serves as a competent point of contact for the customer.

DIGITAL FUTUREmag: Thank you very much for your expert insights and this look into your work.