What is an MSP? Complete guide

What is a Managed Service Provider (MSP)?

An MSP is a third-party firm that administers the information technology (IT) infrastructure and maintains end-user systems for a client. There is a definitive set of day-to-day activities that are contracted out to managed service providers (MSPs) by small and medium-sized enterprises (SMBs), nonprofits, and government bodies. Network handling and infrastructure management, ongoing maintenance, security, and supervision are part of an MSP's services. 

Evolution of Managed Service Providers (MSPs)

The emergence of managed service providers (MSPs) was supported by the beginning of application service providers (ASPs) in the 1990s, which paved the way for remote application hosting. In practice, any organization that provides services to its customers in the areas of IT infrastructure and end-user systems maintenance, and operation from a remote location is referred to as an MSP. 

ASPs led to the evolution of cloud computing services and the establishment of organizations that would exclusively provide remote support to clients and their information technology infrastructure.

In the beginning, managed service providers were centred on remote monitoring and management (RMM). With time, they broadened their services to include service-based models to distinguish themselves from other MSPs. 

Who should use an MSP?

Not sure if you need an MSP? If any of these sound like you, it might be time to get one.

• Small or mid-sized business without a dedicated IT team? An MSP gives you expert support without the overhead.

• Scaling quickly? MSPs grow with you, keeping your systems running smoothly while you focus on the big picture.

• Remote or hybrid team all over the place? An MSP helps manage devices, access, and security, wherever your people are.

• Working in a regulated industry like healthcare, finance, or legal? MSPs help you stay secure and compliant without the stress.

• Tired of constant downtime, surprise IT issues, or mounting costs? MSPs keep things running smoothly with proactive, flat-rate support.

What are the services offered by a Managed Service Provider (MSP)?

Managed Service Providers (MSPs) deliver a range of IT services designed to improve efficiency, boost security, and reduce downtime, all on a proactive, subscription-based model.

• Network management: Secure, optimize, and monitor routers, switches, VPNs, and connectivity to keep your business online.

• Infrastructure support: Maintain servers, cloud environments, and virtual machines with performance monitoring, patching, and scaling.

• Hardware and inventory management: Track and manage IT assets across their lifecycle, from setup to decommissioning.

• Cybersecurity: Provide layered protection with antivirus, firewalls, intrusion detection, threat detection, and monitoring.

• Software license management: Handle software subscriptions, renewals, compliance, and version updates.

• Hardware health monitoring: Monitor devices for signs of failure and run diagnostics to prevent downtime.

• Data backup and storage: Manage secure backups, disaster recovery, and data compliance across on-prem and cloud environments.

• Firewall administration: Remotely configure and monitor firewalls to block threats and enforce network security policies.

MSPs, VARs, break-fix shops- What’s the difference?

As with every vertical, MSPs come in various shapes and sizes. Here is a list of service providers, based on how they operate:

In comparison to other channel organizations such as value-added resellers (VARs), managed service providers have a distinct business model. Managed Service Providers use different pricing options to price their clients for their services. These billing arrangements can be based on per-device or per-user criteria. It can even include an all-inclusive pricing model.

Small and medium-sized businesses (SMBs) are now well-informed about the cost advantages of outsourcing, in addition to the technical competence. In contrast, hiring an in-house IT department team is far more expensive.

On the other hand, instead of relying on a single specialist, they have an entire team to assist them with their technological matters. They provide you with skilled and trained IT professionals, as well as the following products and services:

• Guaranteed uptime: Top-notch uptime with the highest possible performance

• Savings in IT costs: Reduced IT expenses and realistic technology budgets 

• Help maintain client relationships: Productive business partnerships with clients, customers, peers, and vendors

• Cybersecurity: Quality IT protection and security

Companies that have benefited from managed services providers (MSPs) have seen immediate benefits, reduced instances of failures, improved staff productivity, a significant decrease in IT support expenses, and enhanced profitability.

How does a Managed Service Provider (MSP) work?

An MSP operates by onboarding different enterprises, usually small to medium businesses, as clients. Since they lack an in-house IT staff, they rely on an MSP to bridge the gap in their IT infrastructure and ensure business continuity. The MSP is then responsible for the maintenance and servicing of these enterprises' information systems. 

Take a modest-sized accounting firm, for instance, which is required to handle their customers' day-to-day financial statements and maintain a centralized digital record to keep confidential data secure and easily accessible. In addition to this, they are also expected to keep their IT infrastructure functioning without disruptions so accounting applications are up and running around the clock. It can be daunting to supervise storage and maintenance tasks with core business activities on the line.

In such a case, the accounting firm can consider hiring an MSP that will undertake the needful responsibilities, including storing financial data securely in a centralized server and simultaneously providing tech support on the business site as and when required.

What are the primary types of Managed Service Providers (MSPs)

Not all MSPs are built the same. Based on their service focus, depth of expertise, and engagement model, MSPs generally fall into three main categories: Pure-play MSPs, Staffing legacy MSPs, and High-level MSPs. Each type offers different levels of support and specialization depending on the business's needs.

What are the benefits of a Managed Service Provider (MSP)?

Partnering with a Managed Service Provider (MSP) can significantly enhance a business’s IT performance, security, and scalability, all while reducing costs and operational overhead.

Here are the key benefits of using an MSP:

1. MSPs help reduce IT costs by providing predictable pricing, which is often cheaper than hiring full-time IT staff.

2. They offer access to skilled IT professionals without the need for expensive in-house recruitment and training.

3. MSPs provide 24/7 monitoring and support, which helps catch and fix issues before they cause downtime.

4. Their services are flexible and scalable, allowing businesses to easily adjust IT resources as needed.

5. MSPs improve security and help ensure compliance with industry regulations.

6. They perform proactive maintenance, including regular updates and patches, to prevent system failures.

7. By managing IT tasks, MSPs allow businesses to focus more on their core activities and growth.

8. MSPs implement reliable disaster recovery plans that minimize disruption during unexpected events.

How do Managed Service Providers (MSPs) make revenue?

The subscription model is the second most popular form of service business. On a monthly basis, businesses compensate an MSP with a regular charge to provide IT services. 

If something goes wrong while clients are in the subscription period, the MSP will send a technician to fix it without charging a fee to the customer because the company's subscription fee covers the repair cost. Payment plans for this type are often structured around per-hour rates per device or break-fix contracts. 

The MSP also concentrates on the deployment of specialized software tools that automate various functions. These platforms are made up of remote monitoring and management (RMM) applications and professional services automation (PSA) tools:

RMM allows MSPs to maintain networks, end-user systems, servers, and mobile devices using remote management and monitoring software. Additionally, MSPs can leverage these tools to apply patches, run scripts, and install system updates to their clients' computers.

PSA solutions enable managed service providers to supervise a company's projects, handle accounts, and take charge of assets and inventories.

Here are brief insights into RMM and PSA:

What is a Managed Service Provider (MSP) business model?

A Managed Service Provider (MSP) business model is centered around delivering ongoing IT services to clients through a subscription or contract-based arrangement. Instead of charging for individual tasks or hourly work, MSPs typically offer fixed monthly fees that cover a range of services such as network monitoring, maintenance, security, and support. 

This model allows clients to predict IT costs while MSPs focus on proactive management to prevent issues before they occur. MSPs often use specialized software tools like Remote Monitoring and Management (RMM) and Professional Services Automation (PSA) to efficiently deliver and track their services. The subscription-based model encourages long-term partnerships and continuous improvement of the client’s IT infrastructure.

Why does your business need a Managed Service Provider (MSP)?

Here are 6 reasons why you should take the help of MSP IT services to manage your IT infrastructure

1. Top-notch security to keep your network of assets secure 

2. Lets you focus on your core business without worrying about the IT side of things

3. Keeps your business updated with state-of-the-art technology

4. Saves you the cost of building and maintaining in-house IT infrastructure 

5. Lets you scale your business without worrying about scaling the tech needed to support it. 

6. Reliable IT support is always available in case of any technical issues

Here are 6 reasons why you should take the help of MSP IT services to manage your IT infrastructure

• Security and compliance - Let us admit it, none of us are experts with cybersecurity and compliance. Working with managed service providers ensures you have experts taking care of it and not have to worry about them going wrong.

• Focus on your business - As a business owner, your sole focus should be on getting your growth right. MSPs can provide good quality of service, and your IT team can focus on improving business productivity and not firefighting everyday issues.

• Expertise from Day 1 - We live in an era where new technology pops up every day. While you can train your internal IT teams to get all that knowledge, it’s a lot easier to just leave it to the experts. Why spend time on recruiting when you could be helping clients?

• Lower costs - Having an MSP to help with your IT needs is definitely more cost-efficient than having to recruit and train IT technicians to meet the ever-changing needs of your employees. Cost-saving is an important benefit of outsourcing IT to MSPs.

• Scale as you please - With an MSP, you will never have to worry about scaling your IT needs. There is an MSP to solve for your needs, irrespective of whether you want to scale up (or down).

• Reliable support - Having an MSP is like having that 2 a.m. friend to help you out in case of an emergency. Most MSPs do offer 24*7 support

How to choose the right Managed Service Provider (MSP) for your business?

Selecting the right MSP is crucial to ensuring your IT runs smoothly and supports your business goals. Here are key factors to consider:

1. Understand your needs: Clearly define what IT services you require, whether it’s network management, cybersecurity, or help desk support. Knowing your needs helps you find an MSP with the right expertise.

2. Experience and expertise: Look for MSPs with proven experience in your industry and with the technologies you use. Specialized knowledge can make a big difference.

3. Service level agreements (SLAs): Review their SLAs carefully. Ensure they offer clear guarantees on uptime, response times, and issue resolution.

4. Scalability: Choose an MSP that can grow with your business, easily adjusting services as your IT needs expand or change.

5. Security focus: Cybersecurity is critical. Make sure the MSP has strong security protocols and can help you stay compliant with regulations relevant to your industry.

6. Support availability: Check their support hours and how quickly they respond to issues. 24/7 support can be vital for businesses that operate beyond typical office hours.

7. Transparency and communication: An MSP should provide regular reports and keep you informed about your IT environment and any potential issues.

8. Pricing structure: Understand their pricing model to ensure it fits your budget. Look for clear, predictable costs without hidden fees.

9. References and reviews: Ask for client references or check online reviews to gauge their reputation and reliability.

What are the challenges with a Managed Service Provider (MSP)?

While partnering with an MSP offers many benefits, there are some challenges businesses should be aware of:

1. Loss of control: Outsourcing IT means handing over some control, which can feel uncomfortable for companies used to managing everything in-house.

2. Communication gaps: Misunderstandings can occur if there isn’t clear and consistent communication between the MSP and your internal team.

3. Hidden costs: Some MSP contracts may have extra fees for services outside the agreed scope, leading to unexpected expenses.

4. Security risks: If the MSP doesn’t follow strict security protocols, your data could be at risk.

5. Dependency: Over-reliance on an MSP may make it difficult to switch providers or bring IT functions back in-house if needed.

6. Service quality variability: Not all MSPs offer the same level of expertise or responsiveness, so choosing the wrong provider can impact business operations.

7. Integration issues: Sometimes MSP solutions may not integrate smoothly with your existing systems or workflows, causing disruptions.

What are the common myths about Managed Service Provider (MSP)?

When it comes to managed service providers (MSPs), there are many misconceptions that can hold businesses back from taking full advantage of their benefits. Clearing up these myths is important to understand what MSPs truly offer and how they can support your organization effectively. Here are some common myths you should stop believing:

1. MSPs are only for big companies
   Many believe MSPs only serve large enterprises, but they actually cater to businesses of all sizes, especially small and medium-sized companies.

2. Outsourcing means losing control over IT
   Partnering with an MSP doesn’t mean you lose control, it means gaining expert support while you stay involved in key decisions.

3. MSPs are too expensive
   MSPs can actually save money by reducing downtime, preventing costly issues, and eliminating the need for a full in-house IT team.

4. MSPs only fix problems after they happen
   Modern MSPs focus on proactive monitoring and prevention, stopping problems before they disrupt your business.

5. MSPs handle everything, so you don’t need any IT staff
   While MSPs manage many IT tasks, your internal team still plays a crucial role in strategy, compliance, and company-specific needs.

6. Switching MSPs is difficult and risky
   With proper planning, transitioning between MSPs can be smooth and beneficial, ensuring better service and support.

7. MSPs don’t understand specific industries
   Many MSPs specialize in verticals like healthcare, finance, or legal, offering tailored solutions to meet industry-specific requirements.
   

Why do MSPs choose SuperOps?

Managed Service Providers need more than just tools, they need a platform that helps them scale, streamline operations, and deliver exceptional service. MSPs choose SuperOps because it helps them work smarter, not harder. Here is what you can gain with SuperOps:

• Pay as you grow with simple, flexible monthly pricing.

• PSA, RMM, documentation, and client management in one streamlined experience.

• Get up and running quickly with zero setup fees or delays.

• Save hours daily by automating tickets, patches, alerts, and workflows.

• Whether you are a solo MSP or managing thousands of endpoints, SuperOps grows with you.

Start your free trial today and see the difference.