managed service provider

A managed service provider (MSP), also called a management service provider, is a company that manages information technology services for other companies via the Internet.

Common services provided by MSPs include remote network, desktop and security monitoring, patch management and remote data back-up, as well as technical assistance. Most MSPs provide these services on a monthly basis.

The business model behind managed services was developed as the traditional computer value-added reseller (VAR) model continually provided lower profit margins. Lower margins on hardware/software reselling, competition from direct PC vendors (such as Dell, Inc. ), as well as the unpredictable revenues from a reactive, break-fix method of technical support lead to the need for a new model. Partner Program : Managed Service Providers | Axios Systems, the.

Managed service providers sell managed services and offer several different price structures. Most commonly used is a per-month fee, but MSP's can also charge a time and material model as well as price per desktop, server, or network device. They promise to monitor their client's IT infrastructure and resolve any issues that arise within it. This provides ease of mind for the client, as well as predictable recurring revenues for the MSP. Managed services give small business and medium sized businesses an option to have their IT needs taken care of instead of paying an on-site staff.