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What Is Managed Software? A Plain-English Explanation

Managed software means someone else handles the hosting, security, backups, and maintenance. Here's what it means for small businesses and why it matters.

David White
David White
6 min read
managed softwareexplainersmall business

If you’ve come across the term “managed software” and thought “what does that actually mean?” - this post is for you. No jargon, no buzzwords. Just a plain-English explanation of what it is, why it matters, and whether it’s right for your business.

The simple definition

Managed software means someone else looks after your software for you. Not just building it - but everything that comes after. Hosting it, keeping it secure, backing up your data, monitoring it, updating it, and fixing things when they go wrong.

You use the software. Someone else makes sure it keeps working.

The car analogy

Think of it like the difference between buying a car outright and leasing one with a full maintenance package.

When you buy a car, it’s yours. But the MOT, the servicing, the tyres, the breakdown cover - that’s all on you. You have to remember when things are due, find a garage, and deal with it when something goes wrong at an inconvenient time (which it always does).

When you lease with maintenance included, you still drive the car. You still choose where you go. But someone else handles the servicing, the MOT, and the repairs. If something goes wrong, you make a phone call and it gets sorted.

Managed software works the same way. You use it every day. Someone else keeps it running.

What’s included

When I talk about managed software, here’s what I mean in practical terms.

Hosting. Your software needs to live somewhere - a server that’s always on, always connected, and fast enough to handle your needs. I take care of that. You don’t need to know what a server is, where it lives, or how it works.

Backups. Your data gets backed up automatically and regularly. If something goes wrong - a mistake, a technical problem, anything - your data can be restored. You don’t have to think about it or remember to do it.

Security. Software needs to be kept secure. That means keeping things up to date, monitoring for vulnerabilities, and making sure your data is protected. I handle all of that.

Monitoring. I keep an eye on your software to make sure it’s working properly. If something goes down or starts behaving oddly, I’ll usually know about it before you do - and I’ll fix it.

Support. If something isn’t working right, or you’re not sure how to do something, you can get in touch and I’ll help. No call centres, no ticket queues, no waiting three days for a reply from someone who doesn’t know your system.

Updates and improvements. Software isn’t a one-and-done thing. Over time, small things need tweaking - a field needs adding, a report needs adjusting, something needs to work slightly differently. Small changes and improvements like these are included as part of the ongoing service.

What’s NOT included (and why)

Major new features are separate. If you want to add a whole new section to your software - say, a customer portal, or a new reporting dashboard - that’s new development work, and it gets quoted and agreed separately.

This isn’t about being stingy. It’s about being honest. There’s a difference between maintaining and improving what you’ve got, and building something new. Mixing the two up leads to unclear expectations and that’s not how I like to work.

Small tweaks and adjustments? Included. Brand new features? Separate project, separate quote. It’s straightforward and fair.

Who is managed software for?

It’s for small businesses that don’t have a tech team. Which, in my experience, is most small businesses.

If you’re a trades company, a salon, a letting agent, a small retailer, a professional services firm - you don’t have a developer on staff. You don’t have an IT department. You’ve got a business to run, and dealing with servers, backups, and security updates isn’t how you want to spend your time.

Managed software means you get all the benefits of having your own custom system, without needing to understand or manage the technology behind it.

The alternative: managing it yourself

In theory, you can manage your own software. You can rent your own server, handle your own backups, manage your own security, and fix problems when they come up.

In practice? It’s harder than it sounds.

Servers need maintaining. Security patches need applying promptly. Backups need testing regularly to make sure they actually work. When something breaks at 9pm on a Friday - and it will, eventually - you need to be able to diagnose and fix it.

Most small business owners don’t want to do this. And honestly, they shouldn’t have to. Your time is better spent running your business.

Even if you’re technically capable of managing it yourself, the question is whether that’s the best use of your time. For most people, the answer is no.

The peace of mind factor

This is the part that’s hard to put a price on, but it matters more than most people expect.

Knowing that someone is watching your software. Knowing that your data is backed up. Knowing that if something goes wrong at 7am on a Monday, someone is already looking at it. Knowing that you can just pick up the phone and talk to the person who actually built your system.

That peace of mind is worth a lot when you’re running a business and you’ve got a hundred other things to think about. Your software should be the thing you don’t have to worry about.

How Forgd’s monthly fee works

I keep it simple. After building your software, you pay a flat monthly fee that covers everything I’ve described above - hosting, backups, security, monitoring, support, and small ongoing improvements.

The fee is agreed upfront so there are no surprises. It doesn’t change month to month. And if your needs grow and you want new features built, I’ll have a separate conversation with you about that - you’re never locked into anything you didn’t ask for.

No hidden costs. No tiered pricing. No “contact sales for a quote.” Just a clear monthly fee for keeping your software running smoothly.

If you’d like to understand what managed software would look like for your business, get in touch and I’ll walk you through it.

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