The short answer
A managed service provider takes ongoing responsibility for some or all of a business's technology. Rather than calling a technician when a laptop fails and paying for their time, you pay a set amount each month. In return the provider is expected to keep things working, secure and current.
Most MSPs charge per user or per device. The fee pays for help when something breaks, but the larger share of the work happens before anything breaks: updates, monitoring, backups, security settings and planning.
What an MSP does day to day
- Help desk. Staff raise a problem by email, phone or ticket, and it is dealt with in order of urgency.
- Maintenance. Operating systems and applications are updated on a schedule, and devices are monitored for warning signs such as failing drives or full storage.
- Security. Multi-factor authentication, device encryption and endpoint protection are set up and kept in place, with someone watching for alerts.
- Backup. Data is copied somewhere separate, and restores are tested so you know it works.
- Accounts and licences. New starters get set up, leavers are closed off, and licences match the people who use them.
- Other vendors. The provider deals with your internet service, phone system and business software suppliers.
- Planning. What needs replacing, what is up for renewal and what it will cost, discussed before it becomes urgent.
How an MSP differs from break-fix
Break-fix is the older model. You call a technician when something breaks and pay by the hour or by the job. It is simple, and when little goes wrong it can be cheap.
The weakness is the incentive. A break-fix technician earns more when things break, and nobody is paid to stop problems from happening. Preventive work tends to slip because every hour of it shows up as a cost, so updates are delayed, backups go unchecked and security settings drift.
A managed service provider is paid the same whether the month is quiet or busy. Fewer problems mean less work for the provider, so its interests line up with yours. That is the main argument for the model.
Break-fix still makes sense for some businesses. Under about five staff, it usually costs less, and a good MSP will tell you so. We cover this in more detail in MSP vs break-fix.
How an MSP differs from in-house IT
An internal IT person knows the business well and is there in the office. For many businesses that is valuable. The limits are coverage and breadth. One person cannot be an expert in every area, cannot watch security alerts overnight, and needs holidays and sick leave like anyone else.
For businesses of roughly 10 to 150 staff, a full-time IT role is often hard to justify, and a single person carries a lot of risk. An MSP spreads the work across a team and brings tooling that would be expensive for one business to buy alone.
The two can work together. In a co-managed arrangement the internal person keeps the business knowledge and day-to-day relationships, and the MSP adds security monitoring, cover and extra hands.
What is normally included, and what often is not
Most managed service agreements include the help desk, routine maintenance, monitoring, some security tooling and reporting. What varies is everything around the edges. Depending on the provider, these may be charged separately:
- Projects, such as a move to Microsoft 365 or a new office.
- Work outside business hours.
- Onsite visits.
- Security monitoring around the clock.
- Backup of cloud services such as Microsoft 365.
- A margin on hardware and licences.
Those differences are why quoted prices vary so widely. Our fee is $150 per user, per month, with Modern Workplace implementation and a 24/7 security operations centre included, and hardware and licences at cost. The cost guide lists the full inclusions.
What an MSP needs from you
The arrangement works best when both sides know who decides what. A provider needs a named contact in the business who can approve changes and spending, admin access to your systems, and early warning of new starters, departures and moves. In return you should expect regular reporting in plain language and a scheduled conversation about what is coming next. If a provider never asks about your plans, it cannot help you prepare for them.
How to tell a good MSP from a poor one
These questions sort providers quickly. Ask them before you sign anything.
- What is the full price per person, and what costs extra? You should be able to work out a monthly figure without a calculator.
- What are the response times, in writing? Look for separate times for a stopped team, a stopped person and everything else.
- Who owns the documentation and admin credentials? They should be yours, and handed over if you leave.
- How long is the contract, and what does it cost to leave? Long terms and exit fees mainly protect the provider.
- Do you mark up hardware and licences? A margin on resale gives the provider a reason to sell you more.
- Who watches security alerts at night and on weekends? Attacks do not keep office hours.
- When was the last restore test? A backup nobody has restored from is untested.
- Will you tell us if we are not a good fit? A provider that says yes to everyone is only selling.
How we answer those questions
$150 per user, per month, with licences and hardware at cost and nothing else added. Responses within 15 minutes for a stopped team, 30 minutes for a stopped person, and the same business day for everything else. A documentation register you own. Month to month, a month's notice and no exit fee. A human security operations centre watching 24/7. Restore tests on a schedule, reported monthly. And if you have fewer than about five staff, we will suggest break-fix instead.