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Why is a Managed Service Provider (MSP) Important?

MSP Important

Do you need help with your IT (Information Technology) tasks but don’t have much budget? You can hire an MSP for that!

But if you’re unsure what they are and how they can help, then this article will help guide you. Read below to enhance your knowledge about MSP business models, how they can help with day-to-day work, and more.

MSP Definition: What Are MSPs?

A Managed Service Provider (MSP) is a company that issues services to other businesses or organizations. 

Some MSPs specialize in specific segments of IT, such as data storage, while others focus on specific vertical markets, such as legal, financial services, healthcare, or manufacturing.

Their services typically include managing the IT infrastructure depending on the other party’s service-level agreement (SLA). 

What Are the Types of MSPs?

There are many kinds of MSPs, but here are the most common ones.

types-of-msps

Managed Networks & Infrastructure

Managed Networks are an all-around service because the MSP handles the entire network.

It covers everything, including hosting and storage services and establishing connections for your business. The web hosting market is massive, so covering it gives an MSP extra value.

According to projections from Statista, the hosting industry will have a revenue of 124.8 billion in 2023.

hosting

Source: Statista

They also manage backup services.

Managed Software as a Service (SaaS)

SaaS is very common, wherein the MSP offers subscription-based software programs that will give you unlimited usage during your SLA’s duration.
Their service includes all upgrades, updates, and patches to keep everything running at its optimum level. Examples of SaaS are antivirus software, Office365, and universal communication software.

Managed Support Services

If Managed Networks & Infrastructure covers everything that involves the network, Managed Support Services includes anything related to IT support. Their remote help center offers advice, guidance, and solutions to solve issues or problems and helps minimize downtime.

Managed Security🔐

Managed Security is a combined service that focuses on remote security infrastructure. 

It provides diverse solutions like malware protection, patch management, and other security updates. Malware protection is critical because over 1 billion malware programs currently exist online, according to statistics from Worth.

Managed Cloud Infrastructure ☁️

Managed Cloud Infrastructure covers everything related to cloud infrastructure management, including IT, network, computing, and storage.

Some also offer virtualization services for software, applications, and operating systems. 

Managed Wireless and Mobile Computing 📳

MSPs that offer this service give your organization integrated mobile software services. Your staff can use these to connect to the network from different areas. 

Connecting to the network remotely assures synchronicity and simple data transfer so that you can have a remote and flexible workforce. 

Managed Communication Services

These software packages manage various communication infrastructures, such as video, data, messaging software, and VoIP (Voice over Internet Protocol). 

They may also have a managed contact center with the conventional call center features: phone, web, fax, email, and instant messaging that you can use to contact clients. Using this software for communication can improve your leadership skills.

54%

Managed Data Analytics 📈

MSPs that provide Managed Data Analytics offer monitoring services for data use and management. 

They also handle business intelligence to target locations, thus allowing enhanced performance and excellent business decisions. 

A 2020 study on business intelligence and cloud computing found that 54% of companies interviewed stated that cloud business intelligence is crucial for their business strategies.

How MSPs Can Help Their Clients

Here are some of the most critical ways that an MSP can help a company.

  • They target efficiency.
  • They prioritize data security.
  • They assist clients in their business needs.
  • They help clients to innovate.

1.They Target Efficiency

MSPs help their client’s businesses function smoothly by performing routine hardware maintenance tasks to prevent outages and downtime. 

They provide a continuous help desk, IT support, and IT consulting. They also handle software updates and automate security patches. 

pathches

2.Prioritize Data Security

Data security is the main priority of all organizations. MSPs use completely managed and structured network security to protect their client’s data to help prevent cybersecurity threats and maintain business continuity. They also backup data and assist in disaster recovery, potentially saving your business.

According to research from the University of Texas, 94% of businesses and companies that go through a significant data loss do not survive. Additionally, 51% of companies close within two years of a massive data loss.

Managed Service Providers design data centers and networks that are resilient to the problems that they may face. Their data centers are more substantial than enterprise IT service providers, so the flow of services will continue even if there are issues. Essentially, it serves as an extra security layer.

3. They Assist Clients in Their Business Needs

Managed Service Providers search, apply, and manage a solution compatible with their client’s needs. MSPs help budget by analyzing their client’s current expenditures to reduce costs and properly distribute resources.

Managed Service Providers also help with planning by highlighting short-term and long-term needs to figure out technology solutions that scale with their client’s company. They also implement the newest solutions. 

4. They Help Clients to Innovate 💡

Innovation is necessary for a business to scale. To do that, a company must do stressful, time-consuming, and resource-intensive activities. MSPs can help with those activities. 

Managed Service Providers take up IT projects to help organizations save time. They apply the best practices and latest technologies to help reduce costs and save money. 

What Are the Advantages of MSPs?

Managed Service Providers have many benefits for organizations that avail of their services. Here are some examples of the advantages of an MSP.

  • It can reduce costs.
  • It helps you to focus on your primary objectives.
  • It provides IT expertise.
  • They monitor for scalability.
  • Compliance is easier with an MSP.
  • There are reduced risks.
  • They offer real-time support.

1.Reduced Costs 💲

Compared to Break-fix service providers, MSPs are less expensive. They are cost-effective because they help clients reduce operational costs by using the latest technology and providing their field expertise. Reducing operating costs is critical because they are higher than ever in Australia.

June 2023 data from The Australian Bureau of Statistics shows that 46% of Australian businesses experienced increased operational costs.

The SLA that MSPs have with their clients also saves money because it ensures timely service delivery and systematic software and hardware management, enhancing the client’s productivity.

The personalized subscription model fulfills the client’s budget and needs. 

Australian

2. You Can Focus on the Main Objectives

As a company grows, its IT team has to finish more tasks. Some of those may be different from their primary objectives. 

To help with that, a business may hire an MSP to handle other activities. Examples of these are backing up data, updating and patching systems, and producing reports on the function of IT infrastructure.

The Managed Service Provider will help the IT Team to focus on innovation and activities that can generate income instead.

3.Provides Expertise

A company may need specific IT skills or encounter problems their IT team needs help to handle. In cases like this, MSPs can be a great help.

You can hire a full-fledged team of IT experts to help with various activities at a flat monthly price. Examples are network monitoring, help desk activities, or management of IT assets. 

An MSP can also give you guidance and solutions. 

4. They Monitor for Scalability

A company may need to scale up or down over time. To respond to these changes, a company may hire an MSP. They will take care of the changes in IT demands so the business will stay productive and prevent downtime. 

Scaling down may be necessary for many businesses. A study from MYOB states that 52% of small and medium Australian companies think the country will be in recession within 12 months.

The Managed Service Provider will look for things they can improve, offer advanced solutions (such as upgraded service release management), and monitor proactively for better scalability.

5. Compliance is Easier With an MSP

Organizations have to follow the rules and regulations of governing bodies. If they are having difficulty with this, they can hire an MSP. The Managed Service Provider will highlight issues and provide ways to solve them. 

An MSP will also inform their clients when their software licenses will expire, secure the payment information of their clients, and ensure the security practices follow the rules and regulations.

6. There Are Reduced Risks

A company may go out of business after a security breach because customers will lose trust and avail products and services from competitors instead. 

hiring

Since hiring an IT Team that focuses on data security can be expensive, a company may connect with a Managed Service Provider instead. They will help monitor websites and servers, perform data backups, and alert the company of suspicious activity.

7. They Offer Real-time Technical Support

One great advantage of Managed Service Providers is that they provide 24/7 services for 365 days a year. You can ask for help and advice whenever you need it.
If you have a company and want to partner up with a global MSP, make sure that they support multiple time zones and provide round-the-clock support.

Final Thoughts on the Importance of an MSP for Businesses

A Managed Service Provider will be useful for IT activities and problems that you may have. They are not only cost-effective but specialize in helping you with your needs. 

Further look at our products and plans on Tommy for more excellent software to help your business. We also provide information on how to grow your company on our blog!

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