Managed Service Provider

1. MANAGED SERVICE
PROVIDER
BY
Asif Iqbal

2. Introduction
Definition - A managed service
provider (MSP) is a company that
remotely manages a customer's IT
infrastructure and/or end-user
systems, typically on a proactive
basis and under a subscription
model.
Managed Services is the proactive
management of an IT (Information
Technology) asset or object, by a
third party typically known as a MSP,
on behalf of a customer. The
operative distinction that sets apart
a MSP is the proactive delivery of
their service, as compared to
reactive IT services, which have been
around for decades.

3. Typically, MSPs will have the following
distinguishing characteristics:
• Have some form of Network Operation
Centre (NOC) service
• Have some form of service or help
desk service
• Be able to remotely monitor and manage
all or a majority of the objects for the
customer
• Proactively, compared to reactive,
maintain the objects under management
for the customer
• Delivery these solutions with some form
of predictable billing model, where
the customer knows with great accuracy
what their regular IT management
expense will be
Managed Services Characteristics

4. While the term MSP may be somewhat generic these days, there are many types
of MSPs who deliver specific services or manage specific types of customers. Some
of the more common types of solutions include security, storage, desktop, server,
hosting, applications, and mobile device management.
Managed Services Specialties
NETWORK OPERATIONS
REMOTE ACCESS, TELEWORKING
Server Management
Desktop Computing
Services
Seat Management
Help Desk
Services
Application
Development &
Maintenance
SYSTEMS & DATA
CENTER SUPPORT
DATA STORAGE
Messaging ServicesSecurity & Privacy Operations
Hardware Deployment
& Support
DISASTER RECOVERY
Call Center Services

5. Just like there are
many types of
service offerings,
there are many
types of vertical
markets MSPs
service. For
example, banking,
financial services,
health care, and
legal, are just a
few of the vertical
markets that have
shown high
demand for
managed services
for the last two
decades.
Managed Services Vertical Markets

6. Background about MSP
MSPs usually charge a flat monthly fee under the subscription model. This approach
provides the MSP with a monthly recurring revenue-stream, in contrast to IT projects
that tend to be one-time transactions. MSPs often provide their offerings under
a service-level agreement, a contractual arrangement between the MSP and its
customer that spells out the performance and quality metrics that will govern the
relationship.
To keep labour costs in check and improve efficiency, most MSPs employ remote
monitoring and management (RMM) software to keep tabs on clients' IT functions.
RMM software lets MSPs remotely troubleshoot and remediate issues with servers and
endpoint devices. With RMM, MSPs can manage numerous customers' IT systems
simultaneously.

7. Managed services work differs from other business models in the IT solution provider
and channel partner space.
One key departure is recurring revenue. Solutions providers pursuing the break/fix
model, for example, usually price their services on a time-and-materials basis, billing an
hourly rate for repairing a customer's IT equipment and charging for parts or
replacement gear.
Companies performing IT project work, such as computer systems installation and
integration, may charge a fixed price for products and services. Either way, those
solutions providers generate revenue on a one-time basis from each project; an
exception would be large projects with multiple milestones and associated payments.
But, in general, the conventional solution provider business is mainly transactional.
An MSP's recurring revenue stream, on the other hand, potentially provides a more
stable and predictable base of business.
The prospect of recurring revenue has attracted many traditional solution provider
companies, such as value-added resellers, to the MSP business model. However, would-
be MSPs have struggled to establish themselves in the market. The MSP line of business
calls for companies to adopt different performance metrics, technology infrastructure
components and sales compensation programs, to name a few challenges. As a result,
many MSPs derive revenue from business lines other than managed services, such as IT
project work and break/fix business. Pure-play MSPs are relatively rare in the IT services
industry.
How it differs from other business models -

8. Small and medium-sized businesses are
typical MSP customers. Many smaller
companies have limited in-house IT
capabilities, so may view an MSP's
offering as a way to obtain IT expertise.
Larger enterprises may also contract
with MSPs, however. For example,
government agencies, facing budget
pressure and hiring limitations, may
contract with an MSP to supplement in-
house IT staff. The MSP subscription
model provides customers of all sizes
the advantage of predictable IT support
costs. And because MSPs take a
proactive approach, they may be able to
prevent IT problems from occurring and
therefore from disrupting business
operations.
Who are MSP Customers ?

9. The evolution of MSPs began in the 1990s with the
emergence of application service providers (ASPs),
which offered remote application hosting services.
ASPs helped pave the way for companies that would
provide remote support for customers' IT
infrastructure. MSPs, for the most part, initially
focused on the remote monitoring and management
of servers and networks. But over time, MSPs have
expanded the scope of their services in a bid to
differentiate themselves from other providers. MSPs
now often remotely support a client's endpoint
devices and have built offerings around mobile
device management. Companies have also
developed specializations: managed security services
providers (MSSPs), for instance, offer services such as
remote firewall administration and other security-as-
a-service offerings. Managed print services providers,
meanwhile, offload the task of maintaining printers
and supplying consumables.
Evolution of MSP

10. Challenges for MSP
MSPs now face the challenge
of cloud computing. As more of
their customers' IT
infrastructure components
migrate to the cloud, MSPs
have had to find ways to
manage hybrid
cloud environments. MSPs also
seek to provide their own cloud
services or resell other cloud
provider capabilities, with
cloud-based backup
and disaster recovery a
common entry point.

11. Why Use MSP?
MSP helps control costs. Our program gives you a
predictable, per employee
operating cost model that is completely scalable to your
changing needs.
MSP helps you deal with increasingly complex IT solutions.
Our program
keeps you on top of the ever-changing hardware and
software solutions at a fraction of what it would cost for you
to do it in-house.
MSP gives you a better, more dependable IT infrastructure.
Our program
gives you a stable, dependable IT arm without stretching your
own resources too thin.
MSP gives you a better understanding of your infrastructure
and helps you easily maintain compliance. Our program
includes constant monitoring
of your system for anything that might put your IT
environment in danger.

12. CONCLUSION
A managed services provider (MSP) is
most often an information
technology (IT) services provider that
manages and assumes responsibility for
providing a defined set of services to its
clients either proactively or as the MSP
(not the client) determines that services
are needed. Most MSPs bill an upfront
setup or transition fee and an ongoing
flat or near-fixed monthly fee, which
benefits clients by providing them with
predictable IT support costs.