A managed services provider (MSP), is typically an information technology (IT) services provider, who manages and assumes responsibility for providing a defined set of services to their clients either proactively or as they (not the client) determine that the services are needed. Most MSPs bill a flat or near-fixed monthly fee, which benefits their clients by providing them with predictable IT support cost
MSPs now provide many of their services remotely over the Internet rather than having to perform on-site client visits, which is time consuming and often expensive. Common services provided by MSPs include remote network, desktop and security monitoring, patch management and remote data back-up, as well as technical assistance.
Managed Services Providers typically offer several price structures. Most commonly used is a per-month fee, but MSPs may also charge using a time and material model as well as price per desktop, server, or network device. For this fee they will monitor their client's IT infrastructure and resolve any issues that arise within it. This provides peace of mind and predictable costs for the client, as well as predictable revenues for the MSP. Managed services are often looked at as a way for small and medium sized businesses to outsource their IT needs at a lower cost than building an in-house IT support department.
Managed Services Benefits
Key customer benefits:
- Customer peace of mind – monitor network on 24x7x365 basis proactively
- Single point of contact for all network issues
- Single supplier instead of multiple vendors
- Defined Service Levels (for service delivery)
- Known costs for management & fixed price contracts
- Avoid costs of building own management & reporting systems
- Lower Total Cost Ownership (TCO) for client
