What Is a Managed Service Provider

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If you've spent any time exploring IT solutions online, chances are you've run across terms like managed services or MSP. But what exactly does that mean—and how do you know if it’s the right fit for your business?

Let’s break it down.

In this guide, we’ll walk you through the essentials of managed service providers, including:

• What a managed service provider does
• How MSPs differ from in-house IT teams
• Common services offered by MSPs
• The advantages of working with an MSP
• Cost and pricing models
• Why choosing a local provider matters

Managed Service Provider (MSP) Defined:
An MSP is an external company that handles IT services for other businesses. These services are usually remote and ongoing, though many MSPs also offer in-person support when needed.

MSPs typically take care of essential IT functions like cybersecurity, infrastructure management, and network monitoring. Some go even further, offering help with vendor management, staffing, procurement, and more.

One of the biggest draws? MSPs give small and mid-sized businesses access to advanced IT expertise without the costs of maintaining a full internal team.

 Managed service providers cover a wide range of services. Here’s a snapshot of what you can expect:

• Data backup configuration and oversight
• Remote monitoring of IT systems
• Network and server management
• Software patching and updates
• Infrastructure maintenance
• Help desk and technical support
• Proactive issue resolution
• Engineering and system support

And much more!

  When it comes to handling your IT needs, there are three main approaches:

1. Hiring an in-house IT team
2. Outsourcing to an MSP
3. Using a combination of both (co-managed services)

In-House IT: The Pros and Cons

Pros:

• On-Demand Availability: Your team is always nearby when problems arise.
• Deep Familiarity: They know your systems inside and out.
• Trust Factor: These are people you’ve hired and trained yourself. 

Cons:

• Higher Costs: Salaries, benefits, and overhead can get expensive fast.
• Limited Coverage: Time off and turnover can disrupt support.
• Skill Gaps: Internal teams may lack exposure to newer tech or threats. 

MSPs: The Upsides and Downsides

Pros:

• Broad Expertise: MSPs bring a diverse team with experience across industries.
• Predictable Costs: You know what you’re paying—no surprise staffing or training costs.
• Flexibility: Easily scale services up or down as your needs change.
• Fast Replacements: Not happy? Switching providers is quicker than hiring new staff. 

Cons:

• Not All MSPs Are Equal: Service quality can vary—do your homework.
• Remote-First: On-site help might take longer if your provider isn’t local.

 If you already have a small IT team but need extra support for complex projects or growing infrastructure, a co- managed approach can be ideal.

You’ll still keep your internal team but add an MSP to cover specific responsibilities or provide backup. This model gives you the best of both worlds: hands-on support and scalable external expertise.

 Every business is different, so MSPs typically offer flexible pricing models. Here are some common ways they charge:

• Per Device or Per User: Flat monthly fees based on your total users or devices.
• Monitoring Only: Focused security and monitoring services without full management.
• Tiered Packages: Choose from basic to premium plans based on your needs.
• Full-Service Agreements: One set fee for complete IT management.
• À La Carte Services: Pick only the services you want—like help desk support or backups.

 While many MSPs operate remotely, working with a local provider can offer some key benefits:

• Faster On-Site Response: Critical issues don’t always wait. Local teams can be on the ground fast.
• Personalized Service: Local providers take time to understand your business and build real relationships.
• Community Connection: They’re invested in the success of businesses in your area.
• Tailored Solutions: Local MSPs are more likely to offer custom-fit services based on your unique operations.