There are over 40,000 IT managed service providers (MSPs) in the United States. Of those, about 20,000 are considered financially viable. That means when you’re looking for an MSP, you have a 50/50 chance of finding a provider with operational stability. Those aren’t the best odds when you’re entrusting your company’s operational infrastructure to them. Knowing what services an MSP should offer can improve the odds of finding a company that will operate as a technology partner.
What is a Managed IT Service Provider?
A managed service provider (MSP) delivers services, such as infrastructure, network, security, and application support through ongoing support and active management of a client’s IT. The services may be delivered on-premises, at their location, or in a third-party’s data center. A managed provider offers a range of IT services such as:
- Network maintenance
- Cybersecurity protection
- IT support services
- Software management
- Cloud-based services
- Mobile device management
- Communication services
MSPs traditionally offered infrastructure or device-focused services but have expanded to include continuous management, maintenance, and support of a client’s infrastructure.
What is a Service Level Agreement?
A service-level agreement (SLA) is a contract between a service provider and client that sets expectations, describes services, and identifies metrics for assessing performance. An SLA should outline an issue resolution process for managed services or a time-to-repair for a break and fix contract. It should delineate how long before a response is received for a reported problem or what percentage of uptime is guaranteed.
According to the U.S. Bureau of Labor Statistics, the average cost of managed IT services is between $100 and $150 per person per month. The per person charge can increase to $250 per month if cybersecurity and IT consulting services are included. For break and fix models, the cost averages around $125 per hour. In general, MSP offer pricing uses the following models:
- Break/Fix. When a device breaks, the MSP will repair it, if possible. The service is billed on a per-hour basis.
- Per Device. MSPs are responsible for managing and maintaining specific devices on a monthly or yearly basis. Costs are assessed based on the device.
- Per User. The per-user pricing models the per-device option. Clients are charged a monthly or annual fee per user.
- Managed Services. Managed services may be flat-rate or based on the size of the network, including the number of devices and users.
There is no industry standard that helps companies compare MSPs. What one provider includes in a per-user agreement may not be the same as another provider. As a result, organizations are tasked with collecting data for comparison to ensure they are receiving the services they need at a competitive price.
What Should You Expect from an MSP?
A customer-focused MSP will speak your language and understand your business. When they discuss your technology needs, they will bypass the technical jargon and focus on how the technology helps your business. They will help plan your technology needs, monitor their performance, and maintain your network.
Planning
MSPs should discuss your existing network and your plans for expansion. They should ask about the following:
Network Size
Whether you’re looking at a per device or per user model, MSPs should work with you to define your existing network. Experienced MSPs know how networks can grow organically with devices connected to your network that you were unaware of. Having a shared picture of where your network stands make preparing for the future easier.
Business Growth
Nothing changes faster than technology. Devices purchased two years ago may no longer support the latest releases of operating systems or applications. Balancing today’s limitations with tomorrow’s needs is something MSPs can help with. For example, one of your servers fails unexpectedly, but you have budget constraints. MSPs can recommend solutions that fit your budget but can be upgraded when funds are available.
Resource Limitations
Be honest when discussing your IT needs. MSPs need to know your financial limitations. Client-focused MSPs will work with you to develop a plan that works within your budget. They will also want to know the technology capabilities of your employees. Do you have a dedicated IT department? Does your IT support a time and materials technician?
Business Continuity
MSPs should discuss disaster recovery or business continuity plans. Many organizations believe that simple backups are sufficient. Unfortunately, that may not be enough. Weather-related disruptions may require a backup site if you want to remain operational. Cybersecurity concerns may demand offsite storage of backups.
These four examples illustrate the types of information MSPs should be collecting if they are committed to providing solutions to meet your needs.
Managing
Managing a network is not just checking to see that everything is working. It can involve checking performance, identifying potential issues, keeping data secure, and defending against cyberattacks. It depends on the level of service a business requires.
Network Performance
Managing network performance encompasses routine monitoring of service levels throughout the network. It applies a collection of methods to ensure optimal performance. Key functions include:
- Network delays
- Error rates
- Throughput
- Packet transmission
- Packet loss
Performance monitoring identifies bottlenecks and latency issues, for example, before they become an operational disruption. Monitoring can highlight areas where performance is degrading, indicating a possible maintenance issue.
Data Security
MSPs should know where a client’s critical data is stored and how it is used. With the ever-increasing regulations regarding data security, MSPs need to ensure that protected information is kept secure. MSPs should ask about required data security whether the data is stored on-premises or at another location. Data security isn’t just about hackers. Internal constraints may need to be applied to restrict access to need-to-know authentications to follow government and industry standards.
Cybersecurity
Although cybersecurity and data security are often combined, cybersecurity involves more than keeping data safe. Cybersecurity means defending against supply chain attacks that can threaten multiple organizations. It may involve employee training to prevent phishing attacks. MSPs should ask about your cybersecurity posture.
MSPs may offer cybersecurity training to educate employees on how to detect possible cyberattacks. They can help with response plans and conduct assessments to help identify weaknesses. It’s challenging for dedicated cybersecurity specialists to keep up with the novel ways hackers try to breach a system. It’s impossible for companies to stay up to date on cyber threats and run a business.
Managing a network encompasses many tasks that together make for a secure and optimal-performing infrastructure. MSPs should explain in non-technical terms what managing a network entail. Their service agreements should explain how network management will be evaluated.
Maintaining
MSPs ensure the reliability of your network through proper maintenance. Most providers offer levels of service that are defined in the SLA. At a minimum, MSPs should provide the following:
Device Maintenance
MSPs should monitor network devices for possible weaknesses. If a hard drive is slow to spin up, they should determine if it needs repair or replaced. MSPs may track the lifecycle of devices to help project replacement costs for budgeting purposes. The goal is to maintain network operations, so your business is not impacted.
Software Maintenance
Many organizations do not apply software updates or patches promptly. This practice leaves their networks vulnerable to cyberattacks. Because many companies had not applied updates, hackers were able to breach their networks. Microsoft’s Exchange Server attacks exploited a known vulnerability in its on-premises installations.
MSPs should ensure that all software is up to date. They should have protocols for installing and rolling back an update if there is a conflict. The providers should be able to perform these functions with minimal disruption to business operations.
System Maintenance
Computer networks change. New devices are added; new employees are hired. With more remote workers, new connections are often needed. MSPs should facilitate these changes to ensure that the network continues to operate at maximum efficiency. System maintenance involves identifying and correcting system faults to ensure reliable performance when operating environments change.
MSPs should work with their clients to establish an acceptable level of service that addresses their business needs.
Listening
The most critical service MSPs can provide is listening. If they don’t want to talk about your business or how your technology is working, they probably aren’t going to listen when there’s a problem. MSPs should schedule regular meetings to discuss technological changes and how they may impact your business. They should also listen to the changes happening within your organization.
Technology isn’t static, and neither are relationships. MSPs should offer a partnership where they worry about technology, and you worry about your business. They should understand that technology supports your business and employees and be willing to engage with your workforce as needed. Of course, they must be qualified in the services they provide, but it’s the human side of technology that makes for a strong business relationship.