Define MSP
An MSP is an acronym for Managed Service Provider, which is an IT company that provides services, such as server monitoring and maintenance, for a number of different clients.
Who uses MSP’s?
Mainly small to medium sized businesses without dedicated IT staff. A medical office, for example, will use computers for data management, records keeping, and billing, as well as incorporating computer systems into their medical equipment for taking digital scans and analyzing data. This office might not need a full time IT employee on hand to maintain all the equipment. However, when something goes wrong, they'll need someone right away to come in and fix the problem. This is where the MSP comes in.
What’s the cost for MSP services?
Option 1: Break/Fix
Essentially, when something breaks on a client’s computer, the MSP goes out to fix the problem. MSPs using this model will charge for software/hardware parts as well as labour by the hour.
Option 2: Managed Contracts
On a managed contract, the client will pay the MSP a pre-arranged monthly service fee to proactively maintain all their computers. If something breaks, the MSP will come out and fix it, and no additional fee is charged because it's part of the contract.
Option 3: Project-Based
New office setup or relocation or installing new equipment are examples of one-time projects that a client may need professional assistance with. The MSP will provide a proposal outlining recommendations and a solution including an estimate and an implementation timeline.