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Managed Service Providers (MSP)

Managed Service Providers (MSP)

Noun

A managed service provider (MSP) is a strategic partner that delivers services through active administration on-premise for customers, through a data center or through a third-party center. The term originally only applied to device-centric services and infrastructure, but presently also applies to any ongoing management and support.

An MSP can encompass a wide range of services, from network and infrastructure management to cybersecurity, data backup and recovery and help desk support. By outsourcing these critical functions to an MSP, businesses can focus on their core competencies, reduce operational costs and gain access to specialized expertise and technology that might be otherwise unavailable.

An MSP also supports businesses in scaling by enabling them to scale their IT services up or down to meet their changing business needs. One of the biggest challenges to working with an MSP is having limited control and visibility over them as they are outside of the organization. When done correctly, partnering with an MSP can provide a scalable and cost-effective solution that delivers significant value for businesses.

Example:

Managed service providers are a popular choice for B2B SaaS companies that do not presently have the infrastructure to provide internal administration support to their customers.

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