MSP 101

Types of MSP Agreements

An MSP brings IT expertise and technical skills to your door at a price and a scale your company can afford. But that’s where the similarities end. Truth is, MSPs come in all sizes and skill levels. What’s the best type of MSP for your business, and what kind of services do you need?

Let’s talk about the different types of service agreements you might find when working with a managed IT services provider.

Managed IT Services: Break/Fix Model

This is what many people think of as an entry level MSP agreement. Under this type of contract, an MSP might help you secure or install equipment or software. Then, you can buy a certain number of hours per month or quarter that will cover fixing things that break, like server problems, or network outages, or hardware issues.

Under this kind of arrangement, there’s important IT services that aren’t covered, namely, cybersecurity, monitoring, disaster recovery, backup and crucially, end-user service. If you have a break/fix agreement with an MSP, your company must have good internal resources for handling day-to-day computer problems for your staff, in addition to robust cybersecurity protections.

Break-fix pricing varies widely. The price for an onsite visit can range from $75-250 per hour, with most providers requiring at least a couple of hours at a minimum for a service call.

Managed IT Services: Fully Managed Model

When you work in a fully managed model, you get a more comprehensive approach from your MSP’s technicians, who can truly be your “IT staff that’s not on staff.” Under this arrangement, your MSP will perform many, and often all, of the services you’d expect an internal IT department to deliver.

They handle the strategic tech platform development a CIO would provide you. They manage your cybersecurity, much like a chief information security officer would do. They purchase your software and hardware on your behalf, install it, and manage your inventory, just like your internal IT department would do.

Best of all, these services can be delivered at scale. Fully managed IT services give you a predictable monthly budget and a predictable team that will be familiar with your network. Your managed services provider will conduct routine testing and assessments that will prevent network issues or mitigate them before they become bigger. Proactive network maintenance will spot small issues before they become serious problems.

A fully managed MSP contract will generally provide most, if not all of the following services:

• Comprehensive assessment of your infrastructure, looking for updates or upgrades that are needed
• Strategic roadmapping, providing comprehensive project planning for future projects and system upgrades
• Service desk operation that processes IT service tickets with technicians who respond to all your reactive support requests
• Management of your network, and network connectivity
• Comprehensive cybersecurity services, from filtering tools to the monitoring that continuously scans for and responds to threats
• Spyware/Ransomware removal
• Disaster Recovery
• Backup System Installation and Maintenance
• Firewall updates, upgrades and monitoring
• Cloud Service installations and migrations
• Network connectivity, including WiFi and VOIP
• Cybersecurity training for your staff
• Managing multi-factor authentication programs
• Development of policies around cybersecurity and device management for your staffers

Put simply, fully managed IT services can take away the administrative hassles that come from managing your technology platform, so your team can focus on running your business.

Pricing will vary depending on the size of your business, your data handling/regulatory burden, the services provided, and the number of locations/users in your system. This is an ideal setup for small and medium-sized businesses who need enterprise grade IT tools, at a scale that can suit their growing organizations. For the average SMB, costs could be between $1,500 a month to up to $15,000 a month.

Managed IT Services: Co-Managed Services

Your internal IT lead may not be willing to admit that your IT department is overworked and lacking the resources to keep up with the demands of the modern workplace. Unfortunately, many businesses find themselves unable to expand their internal IT departments for many reasons, with budgetary considerations topping the list. It’s costly to find the right IT personnel, pay them a competitive salary, include benefit packages, sick leave, vacation time, and the equipment they need to properly do their jobs.

A co-managed service contract is a solution that gives your IT department an extra boost. It allows your existing technicians to benefit from the expertise of an MSP while maintaining the benefits of having internal IT staff.

The biggest benefit of a co-managed service contract is its flexibility. You can simply buy into as many services as you need, and your MSP will operate as an extension of your existing IT department. You buy as much, or as little, as you need.

In general, co-managed services clients work with an MSP for one, or all, of these service types:

• Combination break/fix services and hardware management—The MSP manages your budget and implementation for your server hardware, computers, and mobile devices. When your systems or network needs physical maintenance, they can handle that, too.
• Strategic Development—Integris can augment your current team with vCIO and vCISO services, helping you build out your budget, create strategic technology development plans, and harden your cybersecurity posture. We’ll manage your data regulation compliance, train your staff for cybersecurity awareness, and ensure you stay qualified for cyber risk insurance.
• Software licensing and management—Our deep relationship with our vendors ensures that you’ll enjoy some of the best, enterprise-grade software platforms available. From productivity software, to cybersecurity, to monitoring, and more, we can secure all the licenses you need and manage their daily performance. Your software will interact well with your current network and run the way it should.
• Cybersecurity Services—Including disaster recovery and backup, monitoring, staff training and procurement and installation of firewalls and security software.

Now that you know what an MSP does, and how they work, how do you know which option is right for you?