MSPs provide ongoing support and management for IT systems, including software and hardware. They often work with businesses to help them optimize their IT infrastructure and reduce costs.
What is a Managed Service Provider?
A Managed Service Provider (MSP) is a third-party company that remotely manages a customer's IT infrastructure and end-user systems. Unlike traditional break-fix IT support, MSPs work on a proactive, subscription-based model, continuously monitoring and maintaining their clients' technology environments to prevent issues before they occur.
MSPs typically serve small to medium-sized businesses (SMBs) that lack the resources to maintain full-time IT staff, though they also support larger enterprises with specialized needs. Their services range from basic network monitoring and help desk support to comprehensive management of cloud infrastructure, cybersecurity, compliance, and disaster recovery.
MSPs as Service Partners with Channel Capabilities
While MSPs are fundamentally service partners who provide ongoing IT management and support, they frequently also act as channel partners for SaaS vendors. This dual role makes them uniquely valuable because they:
- Control IT purchasing decisions - MSPs influence or make technology stack decisions for hundreds or thousands of SMB clients
- Drive standardization - Once an MSP standardizes on a SaaS solution, they deploy it across their entire client base
- Combine services with software - MSPs bundle SaaS products into their managed service offerings, adding implementation, training, and ongoing support
- Reduce customer acquisition costs - One MSP partnership can generate dozens or hundreds of customers
- Enable market penetration - MSPs open access to SMB markets that are expensive to reach directly
How MSPs Partner with SaaS Vendors (Channel Activities)
MSPs primarily operate as service providers, but they can engage with SaaS vendors in different channel partnership models:
MSP Partnership Models for SaaS Vendors
| Comparison | Model | MSP Role | Revenue Model | Best For |
|---|---|---|---|---|
| Referral/Advisory | Recommends SaaS to clients, vendor closes sale | Referral commission | Low-complexity SaaS, MSP prefers vendor to own relationship | |
| Reseller | Purchases wholesale, resells to clients, provides tier-1 support | Margin on resale pricing | Established SaaS products MSPs can support | |
| Managed Service Bundle | Integrates SaaS into managed service offering | Monthly service fee + product margin | Core infrastructure or security tools | |
| White Label/Private Label | Rebrands SaaS as their own solution | License fee + own pricing model | Platform products MSPs build services around |
Common MSP Services
MSPs typically offer a range of services that can complement or compete with SaaS offerings:
Infrastructure Management
- Network monitoring and management
- Server administration and maintenance
- Cloud infrastructure management (AWS, Azure, Google Cloud)
- Backup and disaster recovery
Security Services
- Endpoint protection and antivirus
- Firewall management
- Security Information and Event Management (SIEM)
- Compliance monitoring (GDPR, HIPAA, SOC 2)
End-User Support
- Help desk and technical support
- Software deployment and updates
- Device management (mobile, desktop)
- User training and onboarding
Strategic IT Services
- IT strategy and planning
- Technology vendor management
- Cybersecurity consulting
- Digital transformation guidance
Building Partnerships with MSPs
How a Managed Services Partner Program Works
A managed services partner program is the structured program a software or cloud vendor runs specifically for MSP partners. It is a subtype of a channel partner program, built around recurring service delivery rather than one-time resale.
Across vendors the structure is fairly consistent:
- Enroll in the vendor's partner network.
- Meet a validation checklist covering technical capability and business health.
- In stricter programs, pass a third-party audit to earn a program badge.
- Unlock the benefits: wholesale or consumption pricing, market development funds, incentives, co-sell support, and marketplace placement. Deal registration protects the MSP's opportunities along the way.
The category is growing fast. Canalys, now part of Omdia, expects channel-delivered IT managed services revenue to grow about 13% in 2025, to US$595 billion globally, with roughly 341,000 partners delivering it. One shift worth watching: MSPs are pushing vendors to recognize industry-wide certifications like CMMC, Cyber Essentials Plus, and NIS2 in program tiering, instead of forcing a separate certification per vendor. Vendors should still qualify MSPs like any channel partner, using the 4C method.
Frequently Asked Questions
What is the difference between MSP and BPO?
An MSP manages technology systems, such as networks, endpoints, security, and backups, under a service-level agreement. A BPO provider runs entire business processes, such as payroll, customer support, or accounting. The simplest split: an MSP manages your systems, a BPO runs your processes.
What is an MSP example?
The classic example is a regional IT firm that remotely monitors a small business's networks, endpoints, and backups for a fixed monthly fee under an SLA. Security-focused MSPs (MSSPs) and cloud MSPs are common variants. Canalys counts roughly 341,000 partners delivering managed services in 2025, from small shops to global firms.
Related Partner Categories & Types
Partner Categories:
- Service Partner - MSPs' primary role as IT service providers
- Channel Partner - MSPs can also act as channel partners through reselling, referrals, or white-labeling
Related Partner Types:
- Reseller - When MSPs purchase and resell SaaS solutions
- Technology Partner - MSPs integrate multiple technologies into their service stack
Further Reading
Learn more about building successful MSP partnerships: