What is an MSP? The modern guide to Managed Service Providers for growing businesses 

Michael Sellai • July 24, 2025

Services: Managed Service Provider, Managed IT Services


It’s Monday morning. Your team is scrambling to recover from a sudden server crash. Emails are down, critical files are inaccessible, and your IT department is stretched thin, juggling system outages, user requests, and troubleshooting hardware and software issues. 

Now, picture the alternative. With a managed service provider (MSP) on your side, that same scenario plays out very differently.  

Instead of chaos, you have a dedicated team handling system maintenance, monitoring your IT environment around the clock, and resolving technical problems before they disrupt your work. Your employees stay productive, and your business keeps moving forward.  

That’s just one example of the difference an MSP can make on your daily IT operations. In this guide, we’ll break down exactly what an MSP is, how the managed services model works, and why more organizations are turning to MSPs instead of relying on in-house IT. 

What is an MSP? 

A managed service provider (MSP) is a third-party company that takes on the ongoing, day-to-day management, monitoring, and maintenance of a defined set of services for another organization—typically covering information technology (IT) infrastructure, applications, and end-user systems.  

The managed services provider MSP model is built on a proactive approach: rather than waiting for technical issues to arise, MSPs continuously monitor systems, address potential problems before they escalate, and help ensure that your business runs smoothly and securely. 

MSPs typically offer scalable solutions that can grow with your business, supporting everything from remote firewall administration and mobile device management to cloud computing and supply chain operations. By leveraging the managed services model, businesses can access advanced skills, proactive support, and value-added services that might be too costly or complex to maintain in-house. 

How MSPs differ from traditional IT support and Application Service Providers 

Traditional IT security support often operates on a break-fix or reactive basis, meaning you call for help only when something breaks, which can lead to unpredictable costs and extended downtime.  

In contrast, managed services providers deliver proactive, continuous support under a subscription or fixed monthly charge, minimizing service interruptions and providing predictable costs for your business. 

While application service providers (ASPs) were the early iteration—focusing mainly on hosting and delivering specific software applications remotely—MSPs have evolved to offer a much broader range of services.  

Today’s managed services providers oversee everything from infrastructure management and network monitoring to patch management, data backup, disaster recovery plans, end-user support, and strategic IT consulting. This shift reflects the growing need for organizations to outsource not just software, but the entire IT environment and related support services. 

What are the benefits of an MSP?  

The managed services model offers several advantages beyond just technical support: 

  • Predictable cost: With a fixed monthly charge, you know exactly what you’re paying for IT support—no more surprise invoices or ballooning expenses when unexpected issues arise. 
  • Business continuity: MSPs proactively monitor and manage your infrastructure, reducing the risk of downtime and helping you recover quickly from disruptions. 
  • Ongoing compliance: Providers help ensure your business meets industry standards and regulatory requirements, supporting things like patch management and disaster recovery plans. 
  • Strategic alignment: By handling day-to-day IT management, MSPs free up your internal teams to focus on strategic projects that drive business growth. 

With the right MSP, like the team at BPM, your business will be better positioned to achieve its goals through reliable, scalable IT management. 

Key MSP service offerings 

Managed service providers (MSPs) are trusted by organizations of all sizes to keep technology running smoothly, securely, and efficiently. But what exactly do MSPs do day to day?  

Here’s a look at the core managed services that help businesses stay focused on growth, innovation, and resilience. 

Infrastructure management 

MSPs handle the backbone of your IT environment, including network monitoring, remote monitoring, patch management, and remote firewall administration. By proactively maintaining servers, networks, and devices, they support outage prevention and help to ensure your systems are always up to date and operating reliably.  

Data management 

From data backup and disaster recovery plans to sensitive data protection and data recovery, MSPs take responsibility for safeguarding your organization’s most valuable information. They implement robust backup strategies, monitor data health, and put recovery plans in place to minimize downtime and data loss in the event of an incident. 

IT systems and support management 

MSPs deliver a comprehensive range of managed IT services, including proactive system updates, hardware and software troubleshooting, user account management, device provisioning, and ongoing performance monitoring. When technical issues arise, MSPs provide responsive help desk and remote support—handling everything from password resets to complex troubleshooting.  

With 24/7 system health monitoring and a dedicated support team, MSPs help ensure your technology assets are operating efficiently, and your employees have fast, reliable assistance whenever they need it. 

Cloud computing and end-user systems management 

MSPs help organizations migrate to and manage cloud environments, support mobile devices, and streamline supply chain operations. They oversee end-user systems, making sure employees have reliable access to the tools they need, wherever they work. 

Compliance, reporting, and maintaining industry standards 

Navigating regulatory requirements can be complex. MSPs help organizations ensure compliance with industry standards, manage audits, and provide detailed reporting. This oversight is critical for sectors like healthcare, finance, and government, where sensitive data and strict regulations are the norm. 

Value-added services 

Beyond the essentials, many MSPs offer value-added services such as IT consulting, technology road mapping, and support for strategic projects. Whether you’re rolling out a new application, expanding to new markets, or planning a digital transformation, MSPs can provide the knowledge and resources to help you achieve your business goals. 

Who benefits from MSPs? 

Managed service providers (MSPs) are trusted by a diverse range of organizations, each with unique challenges and goals. What unites them is the need for reliable, scalable IT management and the desire to focus on what they do best—while knowing their technology is in good hands. 

Small and medium-sized businesses 

Growing companies often reach a point where in-house IT can’t keep pace with business demands. MSPs step in to provide cost-effective access to deep technical knowledge, proactive support, and comprehensive IT management. This allows business leaders to shift their focus from troubleshooting technical issues to driving strategic projects and growth. 

Government agencies 

For government agencies, reliable IT operations, compliance, and business continuity are non-negotiable. MSPs help agencies modernize IT infrastructure, implement disaster recovery plans, and maintain compliance with evolving regulations. With critical systems at stake and public trust on the line, agencies rely on MSPs to provide remote monitoring, data management, and rapid technical support. 

Nonprofits 

Nonprofit organizations operate with lean teams and tight budgets. MSPs offer these organizations access to enterprise-grade infrastructure management, IT operations support, and help desk services—without the overhead of a full in-house IT department.This enables nonprofits to maximize resources, protect sensitive donor and client data, and focus on their mission. 

Other sectors  

From healthcare and finance to manufacturing and professional services, any organization that depends on technology can benefit from the managed services model. MSPs provide scalable solutions that adapt as business needs change, supporting everything from mobile devices and cloud computing to compliance and supply chain management. 

Scale your IT department with BPM 

Choosing the right managed service provider is about more than just outsourcing IT—it’s about empowering your organization to run smoothly, reduce risk, and focus on what matters most: growth and innovation.  

With an MSP, you gain proactive support, comprehensive IT management, and the peace of mind that comes from predictable, transparent costs. You also free up your internal teams to focus on strategic projects, knowing that your infrastructure, data, and compliance needs are managed well. 

At BPM, we believe in putting people first. Our managed services are built around your unique needs, combining deep technical knowledge with a personal touch that ensures your business is always supported and ready for what’s next.  

Ready to see how BPM can help your business thrive? Connect with us today for a custom consultation. 

Profile picture of Michael Sellai

Michael Sellai

Partner, Managed IT Services

Michael has nearly 20 years of Information Technology experience and is a Partner in BPM’s San Francisco office. He helps …

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