A managed service provider delivers services like a network, applications, infrastructure, and security on a customer’s premises. This is through regular, ongoing support and active administration in their managed service provider’s (MSP) data center or via a third-party data center. The MSP model helps offload general tasks to an expert to improve service quality, reduce costs, or free internal teams to focus on their core functions.
Recent managed service models have not only evolved, but the field has grown significantly. For example, in 2019, the global MSP market was valued at $186 billion, and by 2025 the figure is projected to hit $356 billion.
Information technology (IT) managers are under pressure to keep costs down while at the same time meeting the operational, performance, and security needs of the business. This is a key factor that has driven them to the predictable cost model offered by a managed service.
Managed services can be a good option for your internal teams that have limited skills, experience, or time to effectively manage certain functions on their own. Others that want to focus their efforts on critical business initiatives may also choose MSP services. Managed IT services can also enable organizations to replace in-house teams.
Relying on an external expert to provide the needed services allows an organization’s core team to focus on business innovation or expansion without getting bogged down by mundane or routine tasks. In addition, MSPs can ensure 24/7/365 coverage of IT tasks and can enhance expertise or specialized knowledge in an organization that might otherwise not be available.
Managed services are tasks often handled within the context of business IT services. The MSP provider is responsible for the equipment or functionality under a service level agreement (SLA). Typical provisions in the SLA cover technical support, help desk operations, downtime, and disaster recovery. The service is frequently paid on a monthly subscription fee basis.
Many businesses outsource the maintenance of a range of functions and processes to improve return on investment and streamline IT management. Depending on needs, MSP services can range from the general to the extremely specific. Common services include network monitoring, maintenance and monitoring of IT equipment, systems management, server management, remote monitoring, and myriad other support services.
The traditional approach to IT management has been to monitor the systems until a problem arises that requires remediation. Today, many MSPs take a more proactive approach to maintenance that can include predictive maintenance and routine patch management.
Every business venture comes with an element of risk. An organization can minimize this by lowering the individual risk associated with each critical business service. By contributing its own proprietary methodologies, software, and infrastructure, a managed service provider can significantly reduce risk. In service delivery, this also facilitates adherence to best practices.
While MSP services offer an excellent strategy that allows operations to be highly resilient, secure, and cost-effective, it is important to identify a partner dedicated to quality service delivery, an MSP that supports a company’s growth strategy. Due diligence before choosing one over another and signing a service level agreement (SLA) is essential.