What Is a Managed Service Provider (MSP)?

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A managed service provider (MSP) is a third party that remotely monitors and manages the IT systems, networks, applications, and infrastructures of other organisations.

Managed service providers (MSPs) offer a wide range of outsourced IT services, from remote monitoring and management of IT infrastructure, systems, and applications to optimising the efficiency and effectiveness of IT tools, assets, and cybersecurity defences.

As digital technologies continue to become more complex and integral to daily business operations, organisations including start-ups, nonprofits, government agencies, and small and medium-sized businesses (SMBs) are looking for support to manage their networks and end-user systems. Demand for managed services spans virtually all industries and sectors including finance, legal services, e-commerce, manufacturing, marketing, healthcare, human resources, and cybersecurity.

In addition to handling day-to-day IT tasks, MSPs make sure networks and applications run smoothly and efficiently. Many provide access to the latest IT tools and technologies, giving their clients the opportunity to adopt new solutions early without worrying about the risk of downtime or disruptions. MSPs also help protect IT infrastructures from new and emerging cyber threats and cyberattacks.

A main benefit of managed IT services is that organisations can access specialised expertise without having to hire and train a complete in-house IT department—freeing them to focus their time and resources on expanding their business and serving their customers.

Who should choose managed IT services?

Many organisations choose to work with a managed services provider because they have limited IT requirements or lack the resources to support a dedicated staff of full-time IT personnel. Some may also choose to work with an MSP to augment their in-house IT capacity.

In all of these cases, MSPs offer a flexible, scalable, and customisable alternative that can provide a variety of managed IT services when and as needed, while enhancing productivity, reducing the hiring burden on already-strained HR departments, and saving time and money.

MSPs also tend to be more proactive than traditional IT services. While in-house IT teams usually focus on responding to emergencies, putting out fires, and fixing problems after they occur, MSPs draw on the latest tools and technologies to proactively identify, predict, and prevent most IT-related problems before they happen.

What services do MSPs offer?

MSPs typically offer a range of general and specialised services to meet the evolving needs of businesses in a variety of fields, and which can adapt to significant differences in the scope, operational requirements, and complexity of the IT systems they support. This includes providing managed services like:

  • Day-to-day remote management of IT environments, tools, and infrastructures

  • Proactive maintenance services to identify and resolve potential IT issues before they cause any lasting damage

  • Technical support and training for on-site IT teams and other staff

  • Regular software patches and updates to keep IT systems up-to-date and running smoothly

  • Billing and payroll services including invoicing, supplier payments, budgets, and employee salaries and benefits

  • Help desk support to handle customer complaints and inquiries, process sales, make recommendations, and assist end-users

  • Strategic planning and consulting to ensure IT tools and technologies are aligned with core business needs and objectives

  • Data backup and disaster recovery services to protect critical information assets and ensure business continuity after security incidents, cyberattacks, or natural disasters

Most MSPs offer service packages that can be tailored to the unique needs and budget constraints of each client. Packages can be designed based on different levels of service or to meet distinct needs, such as basic monitoring and maintenance or specialised cybersecurity protection. Many service packages can also be rapidly and easily scaled to support changing IT needs as companies grow and evolve.

Illustration on what services do MSPs offer.

What are the benefits of using an MSP?

Using an MSP can offer a number of important benefits, including:

  • Long-term cost savings through lower overhead, improved operational efficiencies, and more predictable monthly budgeting

  • Access to the latest and most advanced IT tools and technologies

  • Reduced risk and liability along with enhanced compliance with industry and government laws and regulations

  • Flexibility to scale and adapt to changing needs and evolving competitive landscapes

  • Comprehensive protection from cyber threats, data breaches, and cyberattacks

  • Greater employee productivity, collaboration, and innovation

  • Improved business continuity with less downtime and fewer risks of outages or disruptions

  • Access to specialised training and expertise

  • Enhanced capacity to focus on core business functions, profitability, and client service

Illustration of what are the benefits

What are the challenges of using an MSP?

While MSPs aim to make an organisation’s life easier, there are some practicalities to be aware of.

First, as an organisation begins to work with an MSP, good communication is key. That includes establishing clear channels for sharing information as well as a clear, shared understanding of essential aspects of the service such as response times, scope, and the division of roles and responsibilities between the client and the MSP.

It can also be difficult at first for businesses and their employees to get used to having their IT systems managed remotely by a third party, especially during the initial transition from on-site to remote services.

To address these challenges, it’s essential for clients and MSPs to set realistic goals and expectations together, be open with each other, and work proactively together to identify and deal with any issues that pop up before they become serious problems.

How do I choose an MSP?

There are several steps to follow when choosing an MSP to make sure there’s a good fit, good alignment with business objectives, and that the MSP can deliver the services required. Specifically, organisations should:

 

  1. Assess their internal needs to identify which services they want or need to outsource.
  2. Research a number of different MSPs including checking websites, verifying credentials, reading online reviews, and asking colleagues for recommendations.
  3. Compare a shortlist of MSPs to find out more about the services they offer, their technology tools and platforms, and their pricing models.
  4. Meet with selected MSPs to clarify any questions, discuss how services and support will be managed, and evaluate their security and cybersecurity safeguards, including firewalls, intrusion detection systems (IDS), and data protection and backup measures.
  5. Review all contracts, proposals, and service-level agreements (SLAs) to make sure the services, delivery model, and costs are clear, understandable, and exactly as promised.

 

Illustrations of 5 steps choosing an MSP.

How do I start working with an MSP?

The first step for most organisations after hiring an MSP is usually a thorough onboarding process in which existing IT infrastructures, security postures, and business requirements are analysed and assessed. This can include a detailed audit of existing IT systems and assets to flag potential gaps or issues, assessment of risks and vulnerabilities, and recommended solutions customised to the organisation’s specific IT needs, business goals, and budget.

Setting service-level agreements (SLAs) is often part of the contracting process when hiring an MSP. The contract will set out the terms, conditions, and costs of the managed services to be provided. SLAs also establish baseline expectations for things like how quickly the MSP will respond to any issues or incidents, what their security and cybersecurity measures include, and any other parameters that are needed to avoid any unpleasant surprises and ensure both parties clearly understand their roles and responsibilities, and what they can expect from the partnership.

Once service begins, most MSPs carry out regular and ongoing communication with their clients through a dedicated service team or contact. This ensures the MSP can keep the client informed on the status of their IT systems, highlight any threats or inefficiencies, and track how well the MSP is helping them meet their business goals.

Where can I get help with managed services?

Trend Service One™ is a comprehensive, cost-effective, and fully customisable all-in-one managed IT security service solution.

Combining industry-leading managed extended detection and response (Managed XDR), dedicated incident response, and the most advanced AI-driven security and cybersecurity tools in the business, Trend Service One lets you effortlessly extend your IT resources to adapt to changing needs without the need or expense of a dedicated in-house IT security team.

Plus, Trend Micro’s global Managed Detection and Response team offers real-time telemetry, 100% attack surface coverage, and 24/7 threat management and response to stop cybercriminals in their tracks, and help companies safeguard their business, their customers, and their reputation.

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