Managed services provider (MSP) is a company that remotely controls a client’s IT infrastructure and end-user systems, usually on a proactive basis and under a subscription plan.
Managed services provider is usually a web hosting or application service provider that permit users to delegate their network and application resource process under a contract. MSP typically own the full physical back-end infrastructure and give resources to end users remotely through the Internet on a self-service and on-demand basis.
How are Managed Services priced?
MSP normally charges a flat monthly rate under the subscription model. This method provides the MSP with a monthly recurring income stream, in contradiction to IT projects that have the tendency to be one-time transactions. MSP often gives their offerings through a service-level agreement; a contractual arrangement between MSP and its client, which spells out the work and quality metrics that control the relationship.
In order to track the labor expenses and enhance productivity, most MSPs hire remote monitoring and management (RMM) software to check on customer’s IT functions. RMM software allows MSP to remotely fix and resolve various issues with endpoint devices and servers. Through RMM, MSP can control a number of clients’ IT systems at the same time.
What is the difference of MS from others?
Managed service tasks vary from other business models in the IT solution provider and network partner space. One common trait that sets it apart from the rest is repeated income. Solution providers going after the break or fix model usually bill their services on a time-and-materials basis, billing an hourly rate for fixing a client’s IT equipment and billing for parts or replacement gear. Companies doing IT project work, like computer systems integration and installation may bill a fixed rate for products and services.
Who are the clients of MSP?
Medium and small-sized businesses are common MSP clients. A number of smaller companies have insufficient in-house IT abilities; they may view an MSP’s offering as a way to achieve IT expertise. Larger enterprises may also build a partnership with MSPs. For instance, government departments, experiencing budget pressure and hiring restrictions may have an agreement with an MSP to add in-house IT staff. The MSP subscription model gives the clients of all range the benefit of inevitable IT support expenses. Since MSP takes a proactive method, they may be able to keep IT issues from happening. Thus, avoiding delays in business operations.
The growth of MSP began in 1990s along with the rise of application service providers, which paved the way for remote application hosting services. MSP initially emphasized the remote supervising and management of networks and servers. Overtime, however, MSP has extended the scope of their services in a bid to differentiate themselves from other providers.
MSPs are now facing the new challenge of cloud computing. As more of their client’s IT infrastructure elements turn to the cloud, MSPs had to find ways to handle the hybrid cloud environments. MSPs is therefore expected to produce their own cloud services or resell other cloud provider abilities, with cloud-based backup and disaster recovery as a common entry point.