A managed service provider (MSP) is a third-party company that remotely manages a customer’s information technology (IT) infrastructure and end-user systems. SMBs, nonprofits, and government agencies hire MSPs to handle day-to-day management services, which may include network and infrastructure management, security, and monitoring. MSPs specialize in specific segments of IT or vertical markets such as legal, financial services, healthcare, or manufacturing. They offer services like remote firewall administration, managed print services, and cybersecurity software. MSPs work on a subscription-based model and provide their services under a service-level agreement (SLA).
Organizations rely on MSPs to improve their operations, gain access to IT expertise, and fill staff shortages. SMBs, in particular, lack in-house IT capabilities and view MSPs as a valuable resource. However, larger enterprises, including government agencies facing budget pressures, also benefit from outsourcing IT management to MSPs.
When engaging with an MSP, the first step involves assessing the organization’s current IT environment and business goals. Based on this assessment, MSPs offer various service options, such as technical support fix services or subscription services. Technical support fix services involve resolving issues remotely or sending technicians on-site, while subscription services provide ongoing support for a fixed monthly fee. MSPs utilize remote monitoring and management (RMM) tools to maintain IT systems and professional services automation (PSA) applications to manage projects, billing, assets, and inventory. The services and performance metrics are defined in the SLA.
Engaging with MSPs brings several benefits, including filling staff shortages, accessing expert resources, ensuring business continuity, constant network monitoring, improved security, and cost efficiency. MSPs provide specialized resources that organizations may lack and offer services at a predictable cost. However, challenges associated with MSPs exist, such as the lack of focus on cybersecurity by some providers, potential delays in response, and the potential for upselling unnecessary technology or services. MSPs offer various pricing models, including per-device pricing, per-user pricing, all-inclusive pricing, tiered pricing, and monitoring-only pricing.
What are MSPs Used For?
MSPs are utilized by organizations, particularly SMBs, to enhance their operations and gain access to IT expertise. Small and medium-sized businesses often lack in-house IT capabilities and view MSPs as a solution to fill these staff shortages. However, larger enterprises may also engage MSPs, especially government agencies that face budget pressures.
MSPs handle a wide range of tasks related to IT management, providing essential support and services. These tasks include:
- Management of IT infrastructure
- Technical support
- Cybersecurity
- User access management
- Contract management
- Compliance and risk management
- Payroll services
MSPs play a crucial role in improving operations for organizations of all sizes, providing expertise in various areas of IT management. By outsourcing IT responsibilities to MSPs, businesses can focus on their core competencies while leaving the technical aspects in the hands of professionals.
“MSPs allow businesses to focus on their core competencies while leaving the technical aspects in the hands of professionals.”
Additionally, MSPs offer cost-effective solutions, as businesses can avoid the expenses associated with hiring and training in-house IT staff. Instead of investing in building an entire IT department, organizations can leverage the expertise of MSPs to meet their IT needs.
How Do MSPs Work?
When an organization engages with an MSP, the communication begins with an assessment of the organization’s current IT environment and business goals. Based on the assessment, MSPs offer different service options, such as technical support fix services and subscription services.
- Technical support fix services: These services involve addressing and resolving IT issues remotely or by sending technicians on-site.
- Subscription services: MSPs provide ongoing support and charge a fixed monthly fee, ensuring continuous IT assistance and maintenance.
To efficiently manage IT systems and projects, MSPs utilize remote monitoring and management (RMM) tools. These tools allow MSPs to proactively monitor and maintain IT infrastructure, providing real-time insights into potential issues and ensuring rapid response and resolution. Additionally, professional services automation (PSA) applications are used to manage projects, streamline billing processes, track assets, and manage inventory.
The services and performance metrics provided by MSPs are defined in the service-level agreement (SLA). This agreement outlines the scope of services, response times, uptime guarantees, and other crucial service parameters.
Benefits of MSPs
- Efficient assessment of IT environment and business goals
- Flexible service options to meet specific needs
- Proactive monitoring and maintenance of IT systems
- Access to expert technical support
- Streamlined project management and billing processes
- Improved IT cost efficiency
Challenges of MSPs
- Varying quality of service among providers
- Potential delays in response and resolution
- Reliance on a third-party organization
- Upselling of unnecessary technology or services
- Lack of focus on cybersecurity by some providers
| Service Options | Advantages |
|---|---|
| Technical support fix services |
|
| Subscription services |
|
Benefits and Challenges of MSPs
Engaging with Managed Service Providers (MSPs) offers several benefits to organizations. One key advantage is the ability to fill staff shortages. Many businesses lack the necessary in-house IT expertise to effectively manage their systems. By partnering with MSPs, organizations gain access to expert resources and technical support that can bridge this gap.
MSPs also play a critical role in ensuring business continuity. With constant network monitoring and proactive maintenance, MSPs help minimize system downtime and keep operations running smoothly. Additionally, MSPs prioritize security, implementing robust measures and staying up-to-date with the latest cybersecurity practices to protect businesses from threats.
Cost efficiency is another significant benefit of partnering with MSPs. Instead of investing in expensive infrastructure and hiring additional staff, organizations can benefit from the economies of scale provided by MSPs. These service providers offer predictable pricing models, such as per-device or per-user pricing, which enable businesses to allocate their IT budget effectively.
However, there are challenges associated with engaging with MSPs. Some providers may lack a strong focus on cybersecurity, posing potential risks to the organizations they serve. Additionally, relying on a third-party organization for critical IT functions can introduce delays in response time and decision-making processes. There is also the risk of MSPs upselling unnecessary technology or services, which can impact the cost-effectiveness of the partnership. Careful evaluation and clear communication are essential to overcome these challenges and ensure a successful collaboration with MSPs.
FAQ
What is a managed service provider (MSP)?
A managed service provider is a third-party company that remotely manages a customer’s IT infrastructure and end-user systems.
What are MSPs used for?
MSPs are used by organizations to improve their operations and obtain IT expertise. They can fill staff shortages and provide specialized resources.
How do MSPs work?
When an organization engages with an MSP, it starts with an assessment of the current IT environment and business goals. MSPs offer different service options and use RMM tools and PSA applications to maintain IT systems and manage projects.
What are the benefits and challenges of MSPs?
The benefits of engaging with MSPs include accessing expert resources, ensuring business continuity, improved security, and cost efficiency. Challenges may include the lack of focus on cybersecurity by some providers and potential delays in response.