A Managed Service Provider (MSP) is a third-party company that remotely manages a customers information technology (IT) infrastructure and end-user systems. The practice of managed services involves outsourcing the responsibility for maintaining and anticipating the need for a range of processes and functions, with the goal of improving operations and reducing budgetary expenditures. Here are some key points about managed service providers:
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Services Provided: Managed service providers deliver services such as network, application, infrastructure, and security, via ongoing and regular support and active administration on customers’ premises, in their data center, or in a third-party data center.
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Scope of Services: Managed services can include connectivity and bandwidth, network monitoring, security, virtualization, disaster recovery, storage, desktop and communications, mobility, help desk, and technical support.
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SLA: Managed service providers often provide their services under a Service Level Agreement (SLA), which spells out the performance and quality metrics that govern the relationship between the MSP and its customer.
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Benefits: MSPs are used as strategic partners to improve operational efficiency of businesses of all types and sizes, from small to medium-sized (SMBs) to government agencies and nonprofit organizations.
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Industry Growth: The managed services provider industry was valued at $161.37 billion in 2021 and is expected to grow to $311.31 billion by 2027.
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Examples: Key players in the managed services market include companies such as IBM, Accenture, Fujitsu, Cisco Systems, and Hewlett Packard Enterprise Development.
In summary, a managed service provider is a valuable resource for organizations looking to outsource the management of their IT infrastructure and end-user systems, with the aim of improving operations and reducing costs.
