A managed service provider (MSP) is an IT services company that delivers ongoing technology operations to clients under a recurring agreement. The MSP owns the operational outcome — uptime, security,
A managed service provider (MSP) is an IT services company that delivers ongoing technology operations to clients under a recurring agreement. The MSP owns the operational outcome — uptime, security, support, and strategy — for an agreed monthly fee. Unlike break-fix IT, the MSP is paid to prevent problems, not just react to them.
MSPs evolved out of break-fix IT support in the early 2000s when remote management tooling made it possible to monitor and manage client infrastructure proactively. Modern MSPs typically run a service desk, an RMM platform, a PSA for business operations, and a portfolio of point tools for security, backup, and identity. Most MSPs serve small and mid-market businesses — typically 10 to 500 employees — though the category extends up into enterprise mid-market and down into solo professional services. Pricing is usually per-user or per-device on a monthly recurring basis, with a separate line item for projects. The economic case for an MSP, versus internal IT, is access to specialist skills and 24x7 coverage without hiring an internal team.
An MSP is not a help desk. It is not an outsourced CIO. It is not a security firm. It is not a software reseller. Most MSPs do some of those things, but the defining characteristic is recurring operational responsibility under a managed services agreement (MSA). If the relationship is hourly, project-based, or one-time, that is not managed services — it is something else.