What is an MSP?

CPI - Managed Services

What is an MSP?

A managed service provider (MSP) is an organization that remotely manages and maintains a client’s network infrastructure and end user systems. Managed service providers proactively diagnose and resolve IT issues for small to medium businesses. An MSP protects an organization’s IT infrastructure from risks, issues, and uncertainties; allowing the organization to concentrate on their core business. Businesses rely on their operational efficiency, which makes having a trusted IT service provider essential.

The Evolution of MSPs

The start of the MSP movement began with Simple Network Management protocols. In the 1990’s, application service providers offered local area network off prem. Support providers were hired to ‘fix when broken’ instead of a proactive approach taken today. As business computing began to expand, so did the necessity for preventive measures from IT leaders and service providers. By 2005, smaller companies were able to take advantage of the same benefits as larger corporations by detecting problems as soon as possible; hence the start of the managed services movement.

Common Clients of MSPs

Managed Service Providers are usually partner with small to medium size organizations due to their limited capabilities. Businesses with an employee count as small as 10 can afford an MSP and have relief knowing their IT infrastructure is maintained and secure. SMBs such as law and medical offices, automotive dealerships, and/or school campuses hire MSPs for their IT expertise. The prevention of IT problems from occurring and disturbing business operations is crucial for any business. Risks are minimized for organizations because an MSP builds in system upgrades and essential support services into their contract.

Benefits of an MSP

A managed service provider has many levels of expertise regarding IT infrastructures, such as IT security, network administrator, IT consultant and disaster recovery expert. Clients look to an MSP to not only help them use technology more effectively, but to be more strategic. MSPs are best known for their abilities to support your line of business applications, 24/7 help-desk support, network security, backup and disaster recovery, and monitoring and alerting features. Managed service providers help their clients with business growth by taking control over the IT management, leaving clients to focus only on business objectives.

Average Cost of an MSP

MSP price points vary due to the level of tools or services included within their contract. In order to offer a proactive approach, MSPs implement a fixed-fee model. With a fixed-fee model, Managed Service Providers can give a flat monthly cost versus the costly bill you’d have on a break-fix arrangement. The older break-fix model meant that a company’s bill could sky rocket if they experienced a handful of issues within that specific month. Whereas with an MSP, there is no limit to the amount of issues, the price will stay the same. Typically, prices are determined by per-device, per-user, or some other variation of all-inclusive pricing.

MSPs are familiar with small to large IT issues, which means quick responses and solutions for organizations. An MSP diagnoses and corrects any issues a business may have with their IT infrastructure. Managed service providers who work with a comprehensive support strategy provides an organization with promised guidance and success. To learn more about how a managed service provider can benefit your business, contact us here.

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