What is a Managed Service Provider (MSP)?
A Managed Service Provider (MSP) is an external partner that operates your IT continuously: network, servers, backups, monitoring and endpoints, for a fixed monthly price. It is the opposite of the classic break-fix model, where you call someone after a failure and pay by the hour while your business stands still.
Break-fix vs. managed
In the break-fix model, your provider earns money when your IT fails, which is a strange incentive to rely on. An MSP earns the same flat rate whether things break or not, so prevention is what pays: patching before the exploit, replacing the disk before it dies, testing the restore before you need it.
What an MSP typically covers
Patch management, monitoring with defined response times, backups including restore tests, endpoint management, firewall and WiFi operations, and a monthly report of what was done. Pricing is usually per user and per server per month, which makes IT a predictable line item instead of a lottery.
How to judge one
Look for response times written into the contract, restore tests rather than backup promises, reports that show work actually done, and no lock-in: documentation, admin credentials and hardware should remain yours. If a provider cannot hand over cleanly, that is a warning sign on day one.
FAQ
Common questions.
What does an MSP cost?
Typically a monthly rate per user plus a rate per server. In the German market, expect roughly €30 to €80 per user per month depending on scope. The comparison to make is not against zero, but against downtime, ad-hoc hourly bills and an unfilled admin position.
Do we lose control of our IT?
No. A good MSP documents everything, keeps you as owner of hardware and accounts, and hands over cleanly if you ever leave. You outsource the operating work, not the ownership.
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