Managed Service Providers (MSPs) are turning to strategic outsourcing partners that deliver managed IT services remotely. Organizations of all sizes, small and midsize businesses (SMBs), have relationships with MSPs.
Managed IT service companies provide expertise and resources to help manage all the IT services and infrastructure the SMBs may lack. Large enterprises also hire MSPs to manage their IT operations and services. With MSPs, clients can rest assured that they comply with industry regulations and help protect sensitive data. In this article, you will understand a managed service provider, its business model, benefits, and types of MSPs.
What is a Managed Service Provider?
A managed service provider (MSP) refers to an outsourcer on a contract basis to remotely manage or deliver IT services by taking complete responsibility for the services mentioned below:
- ● Network
- ● Application
- ● Infrastructure
- ● Security management
MSPs also determine the services and technologies required to meet the customer's needs. They generally bundle in software, hardware, or cloud technology as one of their deliverables. The employees deliver the services given by the IT MSP, located at some client's location or elsewhere.
Understanding the Business Model of a Managed Service Provider
Managed IT service providers structure their businesses to offer cost-effective technology services that rival large enterprises. They employ specialists and leverage cutting-edge technologies like artificial intelligence and machine learning to provide flexibility, scalability, and higher-quality services.
Some commonalities that define MSP's business models are as follows:
- ● Service Delivery: MSPs proactively manage the responsibility of handling specific IT systems and functions on behalf of their clients through the cloud, onsite, or remotely.
- ● Subscription-Based Pricing: The payments for MSPs' ongoing services for the clients may recur annually or monthly.
- ● Service Level Agreements (SLAs): The contracts signed by their clients and MSPs will outline the expected level of service, along with the measurable metrics and other remedies incurred.
- ● Customization: Some MSPs also provide personalized services, which adds value to the relationship between them and their clients.
- ● Support: MSPs provide 24/7 IT support for the services, which are provided according to the client's requirements and budgets.
Managed service providers aim to provide efficient, cost-effective services that allow clients to concentrate on their activities.
Benefits of Managed Service Providers
Along with providing efficiency, security, and affordability, managed service providers will also offer several advantages:
- ● Flexibility and Scalability: MSPs provide flexible billing options, allowing enterprises to scale their IT services according to business needs without the risk of significant investments in hardware and software.
- ● Quick Adoption of New Technologies: MSPs help organizations implement and adopt new technologies, enhancing their competitive edge.
- ● Bridging Skill Gaps: MSPs enable clients to access specialized skills and expertise lacking in-house, offering staff training and skill upgrades as part of their services.
Types of Managed IT Service Providers
The managed IT service providers are generally available in all sizes. It has four parts:
- Full-Service MSPs: Offer a comprehensive range of IT services, including cybersecurity, cloud services, and helpdesk support.
- Specialized MSPs Focus on specific IT areas, such as data backup, disaster recovery, or cloud services.
- Co-Managed MSPs: Work alongside a client’s internal IT team to provide additional expertise and support.
- Hybrid MSPs: They combine traditional managed services with value-added services such as software development, digital transformation support, project management, and consulting.
Services Provided by MSPs
Some primary services provided by MSPs are as follows:
- ● Backup & Recovery Management: MSPs help companies implement disaster recovery plans and backups to ensure business continuity when a company fails.
- ● Cloud Services Management: These services help organizations migrate and manage cloud infrastructure, which can boost scalability and performance.
- ● Helpdesk Management: MSPs provide helpdesk support and resolve any IT problems that end-users may have.
- ● Infrastructure Management: Manage the client's IT infrastructure and may incorporate many operations such as networks, mobile devices, PCs, servers, and affordability.
- ● Cybersecurity Management: Help extend support for cybersecurity services such as vulnerability assessments, incident response, threat detection, and data breaches.
Is an MSP Right for Your Business?
Engaging an MSP can be a strategic move for businesses looking to streamline IT operations and focus on core activities. Before hiring an MSP, you must always ensure that you learn and check about their services, experiences, and how your business will grow under their assistance. Try maintaining long-term relationships with MSPs and exploring their company culture before hiring them.