What is MSP?

What is MSP?
What is MSP?

What is MSP (Managed Service Provider)?

What is MSP? – A Managed Services Provider (MSP).Customers often receive a variety of IT services. MSPs are able to establish long-term relationships with customers and earn recurring income by providing continuous IT services. Traditional value-added resellers (VARs) work on a transactional basis and can only be used for short-term projects (e.g. software/hardware purchase and deployment). MSPs can be sought out by any customer, depending on their requirements. However, MSPs often serve small- to medium-sized businesses that may lack an IT staff.

What are the functions of a Managed Service Provider?

MSP refers to outsourced IT services. MSPs are often responsible for the following areas:

  • Manage IT infrastructure
  • Add cybersecurity hardening to IT system
  • Staff technical support
  • Manage user access accounts in clients’ systems
  • Fully managed hardware outsourcing

MSPs can offer remote storage or servers and provide Software-as-a-Service. Managed service providers may only provide hard-to-find IT expertise that can prevent or solve problems for clients’ systems, or help users with their usage issues.

Configurations for MSP

  • What is the difference between an MSP or an IT department?
  • Remotely located
  • Serving multiple clients allows you to pool your expertise.
  • Serve customers in many countries

MSPs have many benefits

The services contract offers many operational benefits and cost savings, including:

  • For a small additional charge, staff is available on-call around the clock
  • A binding contract defines clearly the work of IT support
  • Can replace in-house staff
  • Can be used to cover damage to the premises
  • Data backup management can be included to prevent data loss
  • It can be scaled, adding additional resources gradually or temporarily
  • This eliminates the risk of a company being hampered by industrial action
  • This reduces the need for IT specialists who are scarce and drives up wages.
  • High-qualified staff are available in all parts of the globe
  • Companies in high-cost places can make use of experts in lower-wage areas

An MSP can either replace the entire IT department of a company or offer a specific niche service. This industry is growing to offer expertise in all parts of the world and make cutting-edge technology accessible at a very affordable price.

Management of an MSP

MSPs provide technical expertise, but they can’t work with only pen, paper and phones. It is crucial to use specialist software platforms.

All functions are automatically managed

  • RMM is a technician tool
  • PSA for business management

A business’s success is dependent on its staff’s skills. RMM and PSA maximise the profits of high-skilled specialists and ensure that clients fulfill all their obligations.

About RMM

RMM stands for “remote monitoring management.” It is a term that describes a set of tools that enable remote technicians to manage an IT system. These systems eliminate the need to visit a site to install software or support users.

A managed service provider must be able to provide multiple clients with access to the RMM platform. An RMM platform of high quality should include automated processes to perform routine monitoring tasks such as gathering network performance status.

About PSA

PSA stands for “professional services automation” and allows the MSP to manage in-house staff as well as service staff from clients. The tasks covered by PSA platforms include the assignment of work to technicians, recording time and recording resources used. These information are used to bill.

The PSA provides information that can be used to assist in bidding for work or the creation of service-level agreements. MSPs can use the platform to make sure that contracts are being fulfilled. In case clients dispute charges, the platform stores and gathers proof of performance. To improve the quality of service, customer relationship functions within a PSA store contact information and customer details.

MSPs are required to support end users. PSAs often include Help Desk software or team management software. To reduce the need for human assistance, these modules should contain self-service utilities. Help Desk platforms should offer multiple channels for reporting problems, including web form, email and phone.

How to create an MSP

An MSP provides services over the Internet, which is one of its key features. Your MSP can be found anywhere on the Internet, so you don’t have to pay high rents in major business centers.

You will require both technology and personnel to manage a successful MSP. To create an MSP, you need to address these factors:

  • Access to technical experts with experience
  • There is a need for premises
  • IT infrastructure
  • Outsourced infrastructure
  • Expertise in legal matters for contract management and creation
  • Software to support MSPs

Each of these five elements are interrelated and it is impossible for one to meet all requirements. Before you can start to buy equipment or hire staff, it is important that you have a plan.

MSPs need staffing strategies

Expert technicians are required to create an MSP. MSP can be applied to many different sizes of enterprises.
An MSP can be run by a single freelance technical expert. If you’re an expert in your field and want to be free from the constraints of employment, you can use this staffing strategy. If your expertise lies in finance or marketing, and you identify service provision as a promising niche, you will need to hire qualified employees.

Profitability is key to running an MSP. You need expert staff that are affordable and willing to sell their services in areas where they would be paid very high wages. Your staffing strategy should be closely linked to your planned location.

Business location

Your business’s location has a significant impact on how you plan your staffing strategy. A lower wage expectation can be achieved by being in a Third World country or emerging economy. However, universities in developing countries may not be able to educate students in high-value skills required in the developed world. It may be difficult to find employees who speak the language of the clients you wish to sell to.

In some areas, it might be hard to get high-speed Internet and cutting-edge equipment. Your infrastructure provision will play a major role in your staffing strategy. Both factors are heavily dependent on where you choose to locate your business premises.

Virtual Office MSP

Cloud services can be used for all hardware and software. This infrastructure strategy will resolve many of the problems you’ll face when setting up your MSP. It will however make it extremely dependent on reliable and high-speed internet access. Cloud routing eliminates the possibility of the Internet not being available in all locations.

You can also source skilled staff through virtual offices at a lower cost. It is possible to reach out to poorer countries in the hopes of finding first-world skills. Online recruitment automatically excludes candidates who are unable to access the internet. You don’t have to search for a single location with a lot of low-wage, unemployed experts if you choose to work from home.

An MSP provides the best in “back-office” provision. A showroom is not necessary, and there’s no need for sales staff to meet potential customers. You can gain customers by using online marketing and a well-designed sales website.

Hardware Outsourced

Clients also love keen pricing. You can cut down on the cost of purchasing and maintaining hardware by reducing costs. While you will require servers to run an MSP, they don’t have to be yours. You can rent space on cloud servers for lower costs and greater flexibility. These services can be used quickly and at a low cost.

A cloud infrastructure can be used to host your MSP. This will also solve your staffing issues. Cloud hardware can be accessed from anywhere. This means that it is available for home-based technicians as well as staff members in offices.

Cloud infrastructure is a great option if you want to keep your technicians together. Small towns and villages in rural areas are often close to major business centers. They have lower commercial rents, lower living costs, and offer fewer opportunities for highly-qualified locals to work.

Cloud infrastructure also reduces staffing costs by eliminating the need for in-house technicians to support the hardware and software of your MSP.

Contracts and SLAs

Contracts are a key operational element that can make or break your startup MSP. It is important to be precise in what commitments you make to your clients when you ask them to sign contracts.

Online work offers many advantages. You can obtain a standard contract with your terms and conditions. To get tight contracts, you don’t have to set up a legal department within your company. Other outsourced services that can be found online include legal services. If you find a lawyer who is experienced in international IT, you will be able to properly describe your services in a contract.

Your next legal challenge is to ensure compliance with these obligations. The contract will contain “service level agreements (SLAs),” which will define the work you will do and the standard of service you must provide. Conformance to SLAs was once a problem and source of contention between managed service providers and clients.

PSA platforms make it much easier to show SLA goals. Therefore, it is important to deploy specialist software to monitor work and avoid any contractual complications.

Specialist MSP platforms

Specialist software is essential for any MSP, no matter what business strategy you have. To function effectively, you will need both an RMM platform as well as a PSA system.

These two platforms are not sufficient to meet all your business requirements. For example, you will need to purchase accounting software. Make sure your PSAS and accounting software are compatible. Some PSA systems can channel data directly to your accounting software. This eliminates human error in the transposition of figures from one system to the next.

To ensure all your support software is in synch, you should look for a combination RMM/PSA platform. Cloud-based software services are a cost-effective way to eliminate the need for hardware or the expense of hiring technicians to maintain your business infrastructure.

Managed Services Versus Fix/Break

Two broad categories generally apply to MSP contracts:

Managed Services
The MSP’s service is rented to customers on a monthly basis. They can use the MSP’s services to maintain different systems or provide consulting services. Many times, the contract covers any “fixes” (hardware, software and security incidents). This contract will cover you at least to a specified level as per the SLA.
An MSP is retained by a customer in case of a problem. This can include hardware failures, misconfigurations, security breaches, or any other issues that could cause operational dysfunction. An MSP is required to be available for customers in the event of a break/fix event. Additional pay will be paid for additional hours and hardware replacement.

Why do organizations rely on MSPs for their business?

MSPs are able to help customers scale up to meet new initiatives (such as software deployment), without the need to train and add staff. An MSP can provide expertise in specific technology areas. MSPs often have extensive experience in diverse environments and can offer valuable expertise when it is time to tackle a problem or evaluate possible solutions.

An MSP can assist customers at all stages of their IT life cycle, including:

  • IT Policy and Program Creation
  • Evaluation of potential IT solutions
  • Implementation of the solution
  • Monitoring IT operations, security, and network performance

These are some of the services that MSPs can provide for customers:

  • Helpdesk Support
  • Network and application monitoring/management
  • E-mail
  • Storage
  • Disaster recovery and business continuity
  • Hardware repair
  • Software installation, update, and patching
  • Optimization and configuration management
  • IT Security

MSPs can offer a wide range of services or a specific one. MSPs offer more than just basic cybersecurity services. However, MSPs can also provide highly specialized security services such as identity and access management (privilege management, etc.). MSSPs are managed security service providers that many organizations turn to.


Your business will be competitive with Rmm platforms that offer an all-in-one solution to MSPs.

RMM platform makes your business more flexible and can be used anywhere, anytime. It will also make it possible to complete any task for clients that would normally require an IT department.

Remote access software lets you connect to any client device from your office or home. It is time-saving and allows IT professionals and MSP’s to work faster, and resolve pressing issues with just a click.

Jennifer Thomas
Jennifer Thomas is the Co-founder and Chief Business Development Officer at Cybers Guards. Prior to that, She was responsible for leading its Cyber Security Practice and Cyber Security Operations Center, which provided managed security services.