A managed service provider (MSP) is an outside company that provides services, such as networks, applications, infrastructure and security, through continuous and regular support and active management. These services can be provided at customer facilities, in the data center of their MSP (hosting), or in a third-party data center. MSPs take responsibility for one or more of their company's IT services, such as email, support service, cybersecurity, networks, data storage, cloud integration, backup and restore, patching, and more. They remotely monitor, update and manage the service while reporting on the quality, performance and availability of the service.
MSPs can help you purchase software and hardware and then track and report on hardware assets and software licenses. They also provide access to experienced IT staff who would otherwise have to hire as full-time employees, even if their IT needs aren't to work consistently full time. Outsourcing to an MSP is a cost-cutting measure that can help your business grow by offering a menu of service options to meet your IT needs. Managed service providers hire IT professionals with a wide variety of experience and skill levels, although individual companies may focus on certain industries or technologies.
They manage the complex, tiring, or repetitive work involved in managing IT infrastructure or end user systems. MSPs structure their businesses to offer technological services cheaper than it would cost a company to do it itself, with a higher level of quality and with more flexibility and scalability. According to a Kaseva survey, 54 percent of managed service providers reported an increase in their cloud management revenues last year, and 65% increased their revenues from cybersecurity services. Be sure to review the managed service contract with your MSP and understand exactly what you are going to pay.
However, there are managed service providers of all sizes, and MSPAlliance estimates that there are around 150,000 MSPs around the world.