What is a Managed Service Provider (MSP)?

A managed service provider (MSP) is a third-party service provider that helps businesses with managing their information technology (IT) infrastructure. In this digital landscape when the internet and information technology rule the way industries work, it is important to understand how to manage the systems for seamless operations. If you are wondering what is a managed service provider, read further in this blog and you’ll be guided through all the related aspects including the benefits of managed service providers.

What is a Managed Service Provider?

Managed service provider or MSPs are service providers that help businesses manage their IT infrastructure and support all business technology requirements. These are third-party service providers that offer proactive support and maintenance and ensure that businesses can operate without any disruptions and that compliance is fulfilled.

Managed service providers offer multiple services including:

• IT support and maintenance
• Cloud solutions and management
• Backup and disaster recovery
• Antivirus and malware protection, etc.

MSPs are different from in-house IT teams. While in-house teams are made up of the organisation’s own employees, MSPs work externally. MSPs are considered a cost-effective and efficient solution since creating and maintaining an in-house IT team can become costly in terms of hiring and training employees to manage the IT infrastructure. On the other hand, MSPs have skilled professionals who can also offer scalability for the changing needs of businesses.

What are MSPs used for?

In an era when almost every business relies on IT infrastructure for smooth operations, it is inevitable to have a support system in place to tackle day-to-day issues that may arise in the system.

MSPs are used as information-technology- related support for companies who lack resources to create and maintain an in-house IT team to manage their systems. From installing software, managing any downtime, and protecting systems from any cyber threats, MSPs are delegated with the responsibility to ensure that business operations run smoothly.

How do MSPs Work?

MSPs operate mainly on a third-party business model and tend to be most prevalent for small and medium-sized businesses. These MSPs generally staff their teams with a variety of specialized skills so that they can attend to the general or specialized IT needs of businesses from varied industries while providing consultative and support services on an ongoing basis. MSPs can be used to help you augment your services or be utilized as a comprehensive resource outside of your organization.

What are the Types of MSPs?

There are multiple types of MSPs that cater to different business needs. Some most popular types of MSPs are:

• Managed IT Services: These MSPs only focus on the general maintenance of hardware and software of the IT infrastructure and generally do not require any special set of skills.

• Manager Security Service Providers (MSSPs): These MSPs ensure that your sensitive business information is safeguarded by protecting it from any data breaches or malware.

• Managed Networks: This type of MSP sets up the IT network and maintains the infrastructure, installs firewalls, etc. and ensures that the network is stable, secure and efficient.

• Managed Help Desk: These types of MSPs are useful for businesses that do not have their own help desk to deal with day-to-day general IT issues.

• Managed Backup and Disaster Recovery: These MSPs dedicate themselves to reducing downtime in case any disaster occurs. They ensure that teams create backups regularly and plan for disaster recovery in advance to keep sensitive business data secure.

• Managed Cloud Services: These MSPs are concerned with helping businesses migrate to cloud computing and maintain all the cloud platforms for the business.

In-house VS. MSP

Having an in-house IT team or hiring an MSP can be a difficult aspect to compare. The following points merit consideration in this concern:

• Creating and managing an in-house team can be very costly for businesses due to the expenses involved in hiring and training staff, while MSPs provide the skills and expertise necessary to manage IT systems at a comparatively lower cost.
• MSPs can also adapt and provide scalability with the changing needs of the business while it will be difficult to maintain the size of the in-house team when the business grows.
• MSPs are equipped with the latest technology trends and tools. They can also create and customise systems and programs according to the business needs.

Key Services Provided by MSPs

Generally managed service providers offer a range of services and businesses can choose according to their specific needs:

• Proactive IT Support and Maintenance: This is the basic service provided by every MSP. It ensures that the team proactively manages and maintains the IT infrastructure and resolves issues quickly.

• Cloud Computing Services: Cloud computing is gaining popularity and MSPs help businesses to move and optimise cloud services.

• Network Monitoring and Management: MSP continuously monitors the network and related components and makes sure that the network is stable, efficient and secure from any cyber threats.

• Cybersecurity Solutions: Providing cybersecurity solutions is a major service provided by MSPs. The team implements tools and technologies to keep the systems safe and ensures that no sensitive business information is leaked.

• Backup and Disaster Recovery: MSPs also provide backup and disaster recovery solutions. It is crucial to reduce the downtime in case the system is compromised.

• Compliance and Regulatory Assistance: With increasing rules and regulations, it is important for businesses to comply with these regulations. MSPs ensure that all industry-related compliances are met.

What are the Benefits of Managed Service Provider?

Hiring an MSP can bring numerous benefits including:

• Cost Savings and Predictable IT Expenses: Hiring MSPs can save substantial costs as they provide multiple pricing options that align with the business’s budget. MSPs can make it easier to avoid certain expenses that are predictable related to support and maintenance of IT infrastructure.

• Access to Expert-level Support and Technology: Gaining access to expert-level support and technology is essential to stay ahead of technological changes. Hiring an MSP can bring diverse IT expertise without investing in an in-house team.

• Enhanced Focus on Core Business Operations: Delegating maintenance services to MSP can help businesses to focus more on core business operations and dedicate crucial time and resources in making strategies and implementing them.

• Scalability and Flexibility: An expert MSP can provide benefits of scaling services depending on the business’s change in level of service. Many MSPs offer rolling agreements that save businesses from entering long-term commitments.

• Improved Security and Compliance: Increased use of information technology also poses a high risk of cyber attacks. An effective MSP provides better security and compliance with the use of advanced tools and technologies.

Who Needs an MSP?

There are hardly any businesses that have not incorporated Internet technology in their operations and managing IT infrastructure is very crucial.

• Small and Medium-sized Businesses: Small and medium-sized businesses are generally not able to afford in-house IT support teams. In such cases hiring a third party MSP can be a good option.

• Enterprises looking to Augment IT Support: Hiring an MSP can be a sustainable option for those enterprises which want to augment IT support without maintaining an in-house team.

• Critical Industries: Industries that are critical and require strict compliance like healthcare, finance, legal etc. need regular support and maintenance.

• Startups: Generally startups have limited budgets and it can be beneficial to outsource IT support and maintenance.

How to Choose the Right MSP

Now that you know what is a managed service provider (MSP) and the benefits of using MSPs, it is even more crucial to understand how to choose the right MSP for your business.

Here are certain key factors that should be considered while evaluating MSPs:

• Expertise and Certifications: Always consider the expertise they offer and if they align with your requirements. Check if they hold any certifications that solidify their expertise.

• Industry-specific Knowledge: Choose an MSP who has previous experience working in your industry and understands the unique challenges.

• Service Level Agreements (SLAs): Check if they provide flexible agreements and what is their response time in providing resolutions.

• Reviews and Testimonials: Reviews and testimonials can give you a practical idea about how the MSP actually performs.

Questions to Ask a Potential MSP Partner

Following are certain questions that can help you assess if the MSP is right for your business:

• What services do they offer?
• What are their service level agreements?
• What is their pricing structure?
• Do they provide any on-site services?
• Do they provide any ad-hoc services?
• Do they offer 24/7 support?
• What is the onboarding process?
• What technologies do they use for their services?

What are the Challenges of Managed Service Providers?

While managed service providers offer multiple benefits, there are also certain challenges in associating with them:

• Potential for Miscommunication: Maintaining proper communication is very necessary to ensure that business’s and MSP’s goals are aligned.

• Dependency: When businesses rely on a third party or an external service provider, there’s always a risk of over-reliance.

• Monitoring Performance: Businesses need to monitor the performance of their managed service providers to see if they are properly managing and meeting the pre-decided expectations.

What is the Pricing Model for Managed Service Providers?

There are multiple pricing models that are followed for managed service providers:

• All-Inclusive: All-inclusive pricing is charging flat fees for all IT infrastructure support and maintenance services for the organisation

• Per-Device: Under this model, MSP charges a flat fee for each IT device under scope.

• Per-User: MSP may also charge per user, depending on the number of users of the concerned devices.

• Customised: This model is used when organisations choose a customised package including a set of services to suit their needs.

• Monitoring-Only: It is the cheapest model of all since it only covers monitoring the IT infrastructure and alerting the concerned parties in case any issue arises. This model does not cover services of providing resolutions for these issues.

Trends in IT Managed Services Company

Information technology is ruling the business world and it leads to continuous technological advancements along with constantly changing business needs. There are certain related trends in managed services which can be explained as follows:

• Rise of AI and Automation in MSP Operations: AI has changed the way businesses work and has automated almost every aspect of operations. MSP uses AI to enhance efficiency and be proactive in detecting, analysing and resolving IT issues in advance.

• Increased Focus on Cybersecurity Services: With the increased use of information technology, the need for cybersecurity services has also increased. MSPs are now focusing on protecting businesses from malware and other potential sophisticated threats.

• Growth of MSPs in Cloud-based Environments: Businesses are now relying on cloud services for storage and other business applications since the cloud-based environment offers more flexibility and scalability. MSPs are more important than ever in cloud-based operations.

• Hybrid Service Models Combining MSPs and In-house Teams: It is in a trend that many organisations focus on maintaining in-house teams for regular maintenance and also hire an MSP for more advanced IT solutions.

Conclusion

Managed service providers play a pivotal role in managing IT infrastructure and allow businesses to focus on core operations. Hiring an expert MSP can save businesses from incurring avoidable and hefty IT expenses. An ideal MSP can future-proof your organisation and ensure top-notch security and compliance.

If you’re still wondering which MSP is best suited for your business, Tristar Tech Solutions can be your perfect solution! It offers an extensive range of services and flexible agreements to suit all your business IT needs!

FAQs of Managed Service Provider:

Ques: What does an MSP do?

Ans- MSP or a managed service provider is a third-party entity that generally provides services related to support and maintenance of an organisation’s Information Technology (IT) infrastructure.

Ques: How is an MSP different from a traditional IT service provider?

Ans- While IT service providers are mostly reactive to IT issues, MSPs offer a more comprehensive approach and are more proactive. They aim at regular maintenance of the whole IT infrastructure.

Ques: What industries benefit most from MSPs?

Ans - Healthcare, finance, manufacturing, legal and even education are some of the industries that benefit the most from MSP.

Ques: How much do MSP services cost?

Ans - The cost of MSP usually depends on multiple factors like covered scope, scale of operations, packages, number of devices, IT requirements and other specific needs, etc.