A managed service provider (MSP) is a third party that remotely monitors and manages the IT systems, networks, applications, and infrastructures of other organizations.
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Managed service providers (MSPs) offer a wide range of outsourced IT services, from remote monitoring and management of IT infrastructure, systems, and applications to optimizing the efficiency and effectiveness of IT tools, assets, and cybersecurity defenses.
What is an MSP in business?
As digital technologies continue to become more complex and integral to daily business operations, organizations 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 organizations can access specialized 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.
Types of Managed Service Providers in IT
While MSPs generally focus on managing IT operations, they often specialize in specific domains to better serve their clients. Understanding the major managed service provider types helps leaders align vendor capabilities with business needs.
Network Managed Service Providers
Network managed service providers oversee the health, performance, and security of the network stack across on-premises and hybrid environments. Services often include:
- Bandwidth and availability monitoring to prevent congestion and minimize downtime.
- Configuration and policy management for firewalls, segmentation, and secure remote access.
- Performance optimization (QoS, traffic shaping, SD-WAN path selection) to improve user experience.
- Security patching and lifecycle management for network devices to close vulnerabilities.
These managed network services ensure reliable connectivity between users, sites, and cloud resources, which is now foundational for hybrid work and SaaS-first strategies.
Cloud Managed Service Providers
Cloud managed service providers design, migrate, operate, and optimize cloud environments across public, private, and hybrid architectures. Typical capabilities include:
- Cloud migration & modernization: Planning, landing zones, refactoring, and workload migration with minimal disruption.
- Configuration & operations: Identity and access controls, logging, backup, scaling policies, and site reliability practices.
- Cloud security posture management: Continuous misconfiguration detection, policy as code, and guardrails across accounts and subscriptions.
- Cost optimization: Rightsizing, reserved instances, autoscaling policies, and spend reporting for predictable budgets.
As organizations adopt multi-cloud, a cloud MSP helps unify governance and security while improving cost control and performance.
Managed Security Service Providers (MSSPs)
An MSSP is a specialized provider that focuses exclusively on cybersecurity. While many MSPs include security in their managed IT services, an MSSP builds deeper capability in:
- Threat detection and response (SOC): 24/7 security operations, SIEM/SOAR tuning, and incident handling.
- Vulnerability and exposure management: Continuous scanning, prioritization, and remediation coordination.
- Identity & access security: MFA enforcement, conditional access policies, privileged access management.
- Compliance reporting: Evidence gathering, control testing, and audit-ready dashboards.
MSPs manage IT operations holistically, while MSSPs deliver specialized, always-on security services. Many organizations use a blended model—an MSP for core IT plus an MSSP for advanced detection and response.
Why use a managed service provider?
Many organizations 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 customizable 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 specialized 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
24/7 continuous monitoring of IT systems, networks, and components
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
Specialized cybersecurity services like vulnerability scans, security audits, threat awareness training, managed detection and response (MDR) platforms, and threat detection and response measures to protect businesses from data breaches, hacks, and cyberattacks
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 specialized cybersecurity protection. Many service packages can also be rapidly and easily scaled to support changing IT needs as companies grow and evolve.
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 specialized training and expertise
Enhanced capacity to focus on core business functions, profitability, and client service
What are the challenges of using an MSP?
While MSPs aim to make an organization’s life easier, there are some practicalities to be aware of.
First, as an organization 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, organizations should:
- Assess their internal needs to identify which services they want or need to outsource.
- Research a number of different MSPs including checking websites, verifying credentials, reading online reviews, and asking colleagues for recommendations.
- Compare a shortlist of MSPs to find out more about the services they offer, their technology tools and platforms, and their pricing models.
- 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.
- 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.
How do I start working with an MSP?
The first step for most organizations after hiring an MSP is usually a thorough onboarding process in which existing IT infrastructures, security postures, and business requirements are analyzed 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 customized to the organization’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 customizable 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.
Frequently Asked Questions (FAQ's)
What is a Managed Service Provider?
- A Managed Service Provider (MSP) delivers outsourced IT services, including infrastructure, security, and support, to businesses under contract.
What does MSP stand for?
- MSP stands for Managed Service Provider, a company offering outsourced IT management, monitoring, and support services to organizations.
What does a managed service provider do?
- An MSP manages IT systems, monitors networks, provides cybersecurity, and ensures uptime through proactive support and remote infrastructure management.
What types of businesses benefit most from using an MSP?
- Small to mid-sized businesses benefit most from MSPs due to limited internal IT resources and need for scalable technology solutions.
Do I need a managed service provider?
- You need an MSP if your business lacks in-house IT expertise, requires 24/7 support, or seeks cost-effective technology management.
What tools do MSPs use?
- MSPs use RMM, PSA, ticketing systems, cybersecurity platforms, and cloud monitoring tools to manage and support client IT environments.
How does XDR support managed IT services?
- XDR enhances managed IT services by integrating threat detection, response automation, and analytics across endpoints, networks, and cloud environments.
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