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Glossary Term

Managed services

Managed services is when a third-party IT provider handles an organization’s IT infrastructure needs.

By IT Brew Staff

less than 3 min read

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Definition:

Managed services are usually provided by a managed service provider (MSP) that specializes in IT infrastructure. Managed services are generally offered proactively, with the MSP continually monitoring the client’s infrastructure and stepping in whenever a problem occurs. For clients, hiring an MSP means handing off responsibilities for day-to-day IT management, freeing up time and resources to focus on other priorities; it also spares companies from having to hire for a particular skill set, such as network administration.

The services offered by MSPs vary. For example, some may specialize in cybersecurity and support, including employee access; others may have expertise in the regulations of particular industries and help ensure organizations stay in compliance. Cloud-based managed services help clients with managing their cloud infrastructure, including SaaS, IaaS, and PaaS.

Pricing models for MSPs can be based on users, devices, service tiers, or a flat fee; some also offer bare-bones pricing models that include monitoring and alerts, which can prove useful if an organization already has an in-house IT team that just needs some additional help.

For organizations that want someone else to handle some aspect of their IT infrastructure, however, MSPs also present some potential challenges. For example, dependency on an MSP can become problematic if the latter fails to maintain a system or violates its service-level agreement (SLA) in some way. MSPs may not solve the issue as quickly as an in-house team, and they might use proprietary tools or workflows that make it more difficult for a client organization to access the information it needs.