An IT managed service provider (MSP) manages information technology (IT) for clients. Dan, an MSP professional in the video interview above, says that companies often need IT professionals but aren’t ready for full-time staff. An MSP fills in the gap between the company’s technical skills and the technical skills the company needs.
There are two forms of MSPs – general provider and specialty services. The menu of managed IT services changes slightly by the provider, but most offer multiple services, including network management, data storage, test security policies, upgrade software, and manage bandwidth.
Specialized MSPs specialize in one service.
For example, a company may contract with an MSP specializing in data breaches if a hacker breaks into the network. Other specialized MSPs focus on virtualization, application design, support, or regulatory requirements for medical or financial data. Others provide strategic advice for maximizing the impact of managed IT services.
Managed service providers allow business leaders to outsource their IT needs to focus on their core business. Another advantage is that the services fall under operations expenses instead of capital expenditures. Thus lowering the client’s tax bill.