Over the course of the past ten years, the state of Michigan has saved millions of dollars that otherwise would have been spent on IT services. Its solution of choice is managed services, which has helped the state to use its resources in a far more efficient manner.
One case in point is its file transfer and management needs. According to the data center operations director for the state, Carol Sherman, Michigan has "thousands of file transfers every single day," a situation that can lead to more than a full terabyte of data migrating among more than a dozen different agencies for the state, as well as thousands of outside partners. The true challenge comes from the fact that processing needs for handling the data are not always parallel, nor are the file formats in use.
If each agency or partner were responsible for its own transaction routing, costs would be much higher. Instead, managed services have allowed all file transfers to be managed centrally. Formats are adjusted automatically as data is routed from one agency to another, and a managed services approach means that security is controlled from a central point. This makes breaches much less likely than if each partner had differing security provisions.
A chain, after all, is only as strong as its weakest link. Rather than allow one of the state agencies or partners to be that weak link, Michigan has elected to have strong file security in force throughout the system. This is most feasible when a managed services model is in place.