What is a Managed Service Provider?
A managed service provider (MSP) is a third-party company that remotely manages a customer’s information technology (IT) infrastructure and end-user systems. Small and medium-sized businesses (SMBs), nonprofits and government agencies hire MSPs to perform a defined set of day-to-day management services. These services may include network and infrastructure management, security, software updates, monitoring, etc.
MSPs often handle management services on a daily basis so customer organizations can focus on improving their services without worrying about extended system downtimes or service interruptions.
While some MSPs may specialize in specific segments of IT, such as data storage, others focus on specific vertical markets, such as legal, financial services, healthcare, or manufacturing. Managed security service providers, for instance, offer specialized types of services, such as remote firewall administration and other security-as-a-service offerings. Managed print service providers maintain printers and supply consumables. Often, MSPs perform their tasks remotely over the internet.
What are Managed Service Providers used for?
Hiring a managed service provider can help an organization improve its operations.
SMBs are typical MSP customers. Many smaller companies have limited in-house IT capabilities, so they may view an MSP’s service offering as a way to obtain IT expertise. But larger enterprises may also contract with MSPs. For example, government agencies facing budget pressures and hiring limitations may contract with an MSP to supplement their in-house IT staff.
MSPs handle the complex, consuming or repetitive work involved in the management of IT infrastructure or end-user systems. MSPs typically do the following:
- handle the management of IT infrastructure;
- offer technical support to staff;
- add cybersecurity software to IT;
- manage user access accounts;
- handle contract management;
- offer standards, regulations, partnership, compliance, strategic roadmap, and risk management
How do Managed Service Providers Work?
When a managed service provider is requested to meet the business objectives of an organization, it is often expected to fill in some gap or role in an IT system or staff. Communication between the MSP and the organization typically begins with an assessment that determines the organization’s current environment. This assessment may point out potential room for improvement and how to properly support business goals.
There is not one specific setup for every organization, so an MSP may provide many different service options. Two examples of MSP offerings are technical support fix services and subscription services.
MSP technical support fix services focus on remotely fixing or sending technicians to a business’s location to resolve any issues. MSPs that provide this option charge the company for the time spent troubleshooting and for any parts used to repair the problem.
MSPs that offer a subscription service model work on the quality of service of an organization’s network and usually bill customers monthly. If an issue arises, the MSP will fix the problem as part of the agreement between the organization and the MSP. Payment through the subscription model is based on defined rates per computer or equipment.
Maintenance, security, monitoring, reporting, and other services are defined using an SLA that documents what the organization can expect from the MSP. Response times, performance and security specifications are also included in the service agreement.
MSPs may deliver their own native services, other providers’ services, or an integrated mix of the two. Pure-play MSPs specifically focus on one vendor or technology and more commonly offer their own native services.
Benefits of Managed Service Providers?
Benefits of managed service providers include the following:
- Help an organization fill staff shortages. If an organization lacks workers, it can outsource some of its tasks to the MSP.
- Provide expertise. Hiring a reputable MSP provides an organization with access to expert resources.
- Provide business continuity. An SLA documents the MSP’s obligations to the business to prepare for or recover from a disaster.
- Provide constant network monitoring. Many MSPs offer 24/7 monitoring services using network monitoring tools that offer system visibility and cloud management.
- Improve security. Some MSPs provide security software and awareness training.
- Improve cost efficiency. If numerous unplanned repairs are needed, paying a fixed monthly charge can be more cost-effective than paying hourly. While the MSP handles the day-to-day management services, customer organizations can focus on improving their services.