What is MSP and How One Can Transform Your Business

Many entrepreneurs ask what is MSP and how one could impact their businesses. An MSP or a managed services provider is an enterprise which other companies outsource their IT management needs to. There are many upsides to hiring an MSP to manage a network and this is why these kinds of businesses are increasingly becoming popular.

What is MSP

What is MSP? Managed Services Provider Defined

What is MSP and How Do They Work?

Basically, an MSP works by taking on other enterprises as clients. These businesses, which are mostly small to medium enterprises, do not have their own IT staff. An MSP fills in the gap in their infrastructure by maintaining and servicing these companies information' systems.

Imagine a small accounting firm. They will probably need to keep centralized digital records of their customers' financial statements. Aside from storing sensitive data, they also need to maintain their computers in working order and their financial management applications running. They can hire an MSP which will take care of protecting their data, storing their information in a centralized server in a secure site, and sending techs over in case one of their computers breaks.

What is MSP and Their Business Model?

An MSP operates on two kinds of business offerings. First, there's the technical support fix service wherein an MSP sends one of its tech to a business site in order to repair a problem. The MSP will charge the company for the number of hours the tech spent in troubleshooting the issue and for the parts used in repairing the problem.

The second most common service model is the subscription type. An enterprise pays the MSP a standard fee for servicing their network on a monthly basis. If something breaks during the subscription period, the MSP sends its tech to fix the problem free of charge since the company's monthly fee covers it. Payment schemes for this model typically involve hourly rates per computer or equipment.

What is MSP and What Advantages Do They Offer?

An MSP offers a surprising array of advantages to its clients. First and foremost, an MSP reduces the costs of keeping an IT system because of the economies of scale behind their operation. They will also reduce capital expenditures like salaries for an entire IT team. Businesses also don't have to worry about finding people with the right talent for their work since an MSP already has a deep talent pool of specialists to meet their clients' needs.

MSPs are also highly efficient at maintaining their networks. They maintain the strictest standards and adhere to best practices in network upkeep. Since the value of their business involves keeping the business processes of their customers going, they keep a tight lid on cyber security and maintain several backups in secure data centers. Investing in the services of an MSP therefore reduces risk for the business and ensures its continuity in the case of a breach.

Now that you have an idea what is MSP and the many aspects of this type of entity, you can start thinking about hiring one for your company. Handing the keys to your network to an MSP can be one of the best business decisions you'll ever make.

Are you now more enlightened about what is MSP and how it can transform your business? Since we're on the subject of MSPs, please consider NuMSP to handle the needs of your network. NuMSP can offer you a great service package at the lowest price point in the industry. Please get in touch with one of our representatives today to talk about how we can help your company.