A Managed Service Provider (MSP) is a company that runs your business IT on an ongoing basis under a monthly service agreement. Instead of paying someone each time something breaks, you pay a team to keep things from breaking in the first place.

If you've been handling IT with a tech-savvy employee, a part-time contractor or a phone number you call when the server acts up, you've probably heard the term MSP. Here is what it means, how it differs from the old way of buying IT support, and what to look for when you compare providers.

What does MSP stand for?

Managed Service Provider. The word "managed" carries most of the meaning. An MSP doesn't only show up when something is on fire. It looks after your technology continuously, in the background, so fewer fires start.

You'll also hear the service called managed IT services. Same idea: an outside team takes ongoing responsibility for your computers, network, email, security and backups.

The simple way to think about it

An MSP works as your outsourced IT department. It does the same job an in-house IT team would: keeping computers running, the network stable, email working, data backed up and attackers out. The difference is that you don't have to recruit, train or cover for one person, and your IT doesn't stop when that person goes on vacation.

How an MSP differs from break/fix

The traditional model is called break/fix. Something breaks, you call someone, they fix it and send an invoice. The trouble is in the incentives: a break/fix provider earns more when more things go wrong, and you only hear from them after the damage is done.

An MSP works under a recurring service agreement, so the provider does better when problems are prevented. Monitoring, patching, security and planning become part of the job rather than extras. Your costs are also easier to budget, because the agreement defines what is covered and the terms are written down before work starts. For a deeper comparison, see managed IT vs. break/fix: the business case.

What an MSP does

A capable MSP typically handles most or all of the following:

• Monitoring: automated tools watch your computers, servers and network around the clock and open a ticket when something starts to fail. This is often done through remote monitoring and management (RMM).
• Patching and updates so known security holes get closed on a schedule.
• Help desk support when your team needs help, which is the part you feel day to day.
• Cybersecurity: endpoint detection and response (EDR), email filtering, multi-factor authentication and security awareness training for staff.
• Backup and disaster recovery so a ransomware attack, failed drive or flooded server room is a recovery project rather than the end of your data.
• Vendor management: dealing with your internet provider, phone company and software vendors on your behalf.
• Planning: flagging what is due for renewal, what is reaching end of support and what to budget for next year.

The business case

For most small and midsize businesses, choosing an MSP is a business decision more than a technical one.

One in-house IT employee comes with salary, benefits, payroll taxes, tools and ongoing training. Even then, that person can't cover every hour, can't be an expert in networking, security, cloud, compliance and phones all at once, and will eventually take time off or move on. When they leave, a lot of knowledge often leaves with them.

An MSP gives you access to a team with a range of specialties, documented systems and coverage that doesn't depend on one person. Many businesses also keep an internal IT person and use an MSP to back them up with monitoring, security and escalation. Whether an MSP makes sense for you depends on your size, how much you rely on technology and what you're spending today. A good provider will walk through that with you plainly. Our article Is my business ready for managed IT? can help you think it through.

What to look for when comparing MSPs

The most common complaint we hear from businesses changing providers is slow response. Tickets sit in a queue, the first person to reply has to escalate, and the problem waits. A few questions help separate providers:

• Is there a written SLA? A Service Level Agreement sets how quickly the provider responds and how issues are escalated. If a provider won't put it in writing, that tells you something. NerdSquad's IT help desk operates under an industry-leading SLA, and the exact commitments are written into each client's service agreement. See What is your service level agreement (SLA)?
• How many hand-offs before someone fixes it? Many MSPs use three support tiers, which can mean your issue gets passed along twice. NerdSquad runs two tiers: the technician who takes your call works the problem, and if it needs a specialist, it goes straight to one without you explaining it again.
• How can you reach them? "Submit a ticket and wait" shouldn't be the only option. NerdSquad clients can reach us by phone, email, the support portal, portal chat or through their account contact.
• What hours are covered? Ask which hours technicians work your tickets and what is monitored automatically outside those hours.
• Is security built in? Cybersecurity should be part of the service from day one, not an afterthought.

Who benefits from an MSP

Almost any business that depends on its technology to serve customers. It becomes especially valuable if you:

• Work in a regulated field such as financial services, medical and dental, or legal, where security and documentation matter
• Have outgrown the "one tech-savvy employee handles it on the side" approach
• Recently lost your IT person or are unhappy with a slow or unresponsive provider
• Have had a security incident and want to put stronger controls in place
• Are tired of unpredictable bills every time something breaks

How NerdSquad fits in

NerdSquad Managed IT Services is a Managed Service Provider based in Naples, Florida. Our founders have decades of experience helping businesses with their technology needs, and we built NerdSquad around the things businesses most often say went wrong with their last provider: slow response, hand-offs and security treated as an add-on.

Our managed IT services come in three plans. Endpoint Starter covers business hours Monday through Friday, Endpoint Pro covers extended hours seven days a week, and Endpoint 360 provides 24/7 coverage including weekends and holidays. Automated monitoring runs around the clock on every plan, and every plan includes an industry-leading SLA. NerdSquad doesn't require a long-term contract. Plan details and terms are set out in your written service agreement, and we'll walk you through them before you sign anything.

We support businesses onsite across Southwest Florida, including managed IT services in Naples and managed IT services in Fort Myers, and remotely nationwide.

Talk to NerdSquad

Already a client? Call (239) 465-0079 or submit a ticket. If something is down, call so we can start right away.

Not a client yet? NerdSquad Managed IT Services is a Managed Service Provider (MSP) based in Naples, Florida. We support businesses onsite across Southwest Florida and remotely nationwide. Book a discovery call or call (239) 465-0079.

Related: Managed IT services and plans