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Managed service providers are becoming more important to businesses everywhere.
A report from Canalys says that 28% of managed service providers are expected to grow by over 20% by 2025. That’s a big sign that more companies are trusting MSPs to keep their IT systems running strong and secure.
As businesses grow, handling IT problems on their own gets harder. Managing servers, cybersecurity, support tickets, and cloud systems takes a lot of time and expertise. It’s expensive too.
That’s why many companies are now working with managed service providers (MSPs). MSPs take care of day-to-day IT tasks so businesses can stay focused on bigger goals.
In this blog, you’ll learn what MSPs are, what services MSPs provide, and why so many businesses—from small startups to big global brands—choose to outsource their IT needs.
You'll also see why understanding how to start a managed service provider business matters if you're looking for new opportunities in tech.
What are MSPs?
An MSP, or managed service provider, is a company that manages a defined set of day-to-day management services for businesses, nonprofits, and government agencies.
These services are designed to support IT operations without requiring the client to maintain a large in-house IT staff.
MSPs typically offer managed services like network monitoring, cybersecurity, remote monitoring and management, patch management, and support for IT infrastructure.
Their main goal is to deliver services without worrying about extended system downtimes or unexpected interruptions that can hurt business continuity and efficiency.
If you're wondering how to start an MSP, it begins with understanding these core responsibilities and the service demand across different industries.
What main services do MSPs provide?
MSPs offer a wide range of services designed to meet the varying needs of small and medium-sized businesses, nonprofits, and government agencies. Here’s a look at some of the most common offerings and what MSPs are:
- Network monitoring and management: Constant supervision to prevent system downtimes or service interruptions.
- Cybersecurity services: Managed security solutions to protect against threats and data breaches.
- Technical support and service desk: 24/7 help for day-to-day technical issues through a single point of contact.
- Infrastructure management: Management of IT infrastructure to ensure stable and scalable business operations.
- Remote monitoring and management (RMM): Proactive maintenance, updates, and troubleshooting are performed remotely.
- Patch management: Regular updates and patches to maintain security and system health.
- Cloud computing services: Deployment and management of cloud resources to increase agility and access to the latest technologies.
- Managed print services: Oversight of print infrastructure to control costs and improve efficiency.
- Backup and disaster recovery: Strategies for business continuity in the event of system failures or data loss.
- Analytics and reporting: Tools to measure service quality, business efficiency, and technical performance.
- Support for financial services and supply chain management: Tailored services that ensure critical business sectors operate without disruption.
- Service level agreement (SLA) management: Clear guidelines to define the level of service businesses can expect.
Understanding this service range is essential if you're planning how to start a managed service provider business or aiming to strengthen your existing offer.
7 questions to ask before starting an MSP business
Thinking of what MSPs are and how to start an MSP? These seven critical questions will help you map out a strategy before launching into the managed services business model.
1. What types of services will be offered?
Defining the types of services offered is key to establishing a strong brand. Will the MSP focus on managed security, network monitoring, cloud computing, or provide a full set of day-to-day management services?
A focused service offering makes it easier to build expertise and create consistent service delivery outcomes, whereas a broader set may appeal to businesses wanting a single point of contact.
2. Who is the target market?
Successful MSPs choose whether to serve small and medium-sized businesses, nonprofits, government agencies, or specialize in sectors like financial services or healthcare.
Understanding the unique needs of these industries—like compliance requirements for financial firms or strict data protection for healthcare—is critical.
This decision impacts marketing strategies, pricing models, and how services are packaged.
Clear target market identification is also one of the basics of how to sell managed services.
3. What will the Service Level Agreement (SLA) look like?
The service level agreement outlines expectations between the MSP and its clients. Clear SLAs define the level of service, guaranteed response times, uptime targets, and penalties for failing to meet obligations.
A strong SLA builds trust and clarifies what businesses can expect from their managed services provider.
4. Will the focus be on a single vendor or multiple vendors?
Some MSPs focus on partnerships with a single technology vendor, while others remain vendor-neutral. Focusing on one vendor or technology allows deep specialization, but a multi-vendor approach gives clients more flexibility.
Understanding this choice early shapes procurement, technical expertise, and even the pricing strategy for services.
Choosing your vendor model early is a strategic decision in how to start a managed service provider business.
5. What tools will be used for management services?
Choosing the right tools for remote monitoring and management (RMM), patch management, network monitoring, and analytics is critical. What are MSPs? Well, the MSP’s efficiency depends on the strength of the tools behind the scenes.
These tools directly impact the ability to improve service quality and focus on improving their services over time.
Strong tools and automation also play a huge part when selling managed services effectively.
6. How will the MSP ensure business continuity for clients?
Business continuity is non-negotiable for clients. MSPs must have strategies to maintain service during cyberattacks, natural disasters, or system failures. Offering backup and disaster recovery services can be a major value-added service and a key differentiator.
Clients want to know they won’t suffer extended system downtimes or service interruptions when they outsource critical operations.
7. How will pricing models be structured?
Will clients be charged a fixed monthly charge based on devices, users, or service tiers? Or will there be value-added services offered at premium rates?
Understanding how to build predictable, scalable business models ensures profitability and easier long-term growth, especially when partnering with vendors or expanding into new global managed service markets.
This pricing knowledge is central to how to sell managed services properly.
8 tips on how to sell managed services
Knowing what MSPs are and selling managed services requires a mix of strategy, positioning, and relationship-building.
Here are eight powerful tips to connect with your ideal audience and grow a successful MSP business model.
Tip #1: Sell business continuity, not just IT support
Business owners care about outcomes, not technical jargon.
When marketing managed services, lead with promises of business continuity, protection against system downtimes or service interruptions, and improvement in business efficiency.
Positioning your MSP as a partner that ensures reliable infrastructure management and seamless daily operations appeals much more than listing technical features.
Tie services like managed security and network monitoring directly to preventing loss of revenue and customer trust.
Tip #2: Show how outsourcing IT reduces costs
Cost remains a driving factor for small and medium-sized businesses deciding to outsource.
In marketing messages, demonstrate how MSPs provide the same support an in-house IT staff would offer—but for a fixed monthly charge.
Explain how partnering with an MSP removes the overhead of training, recruiting, and retaining full-time tech employees.
At the same time, it gives businesses access to services like patch management, managed security service providers, and cloud computing solutions that would otherwise be costly to maintain internally.
Tip #3: Leverage case studies to build trust
Prospects trust results, not promises. Sharing real-world examples of how your managed service provider offerings solved problems like system downtimes, improved service delivery, or hardened cybersecurity builds credibility.
Using client success stories demonstrates that your MSP can perform a defined set of day-to-day management services reliably.
Focus case studies on measurable outcomes like increased service quality, lowered costs, and improved technical support response times.
Tip #4: Educate with valuable content marketing
Many decision-makers still don't fully understand what MSPs are. Content marketing—through blogs, webinars, and guides—can position your MSP as a trusted advisor.
By educating audiences about the benefits of remote monitoring and management, the importance of a strong service level agreement, or why government agencies hire MSPs for critical support, you provide real value upfront.
This education-first approach makes it easier to build relationships before making the sales pitch.
Tip #5: Emphasize security and compliance support
Today, cybersecurity is a non-negotiable concern. Make sure marketing materials emphasize your expertise in providing managed security, compliance support, and defense against emerging threats.
Mention how MSPs can help organizations meet regulatory requirements, secure endpoints, and maintain business operations even when new threats emerge.
Focus on reassuring clients that partnering with the right MSP protects their sensitive data without worrying about extended vulnerabilities.
Tip #6: Highlight flexibility and scalability
Businesses grow—and their IT needs change. Show how MSPs offer a wide range of services that scale with a company's growth.
Whether they need simple service desk support today or full infrastructure management tomorrow, the right managed services model adapts to changing demands.
Reinforce how services can expand or shrink based on business needs without needing a complete overhaul. Flexibility is a strong selling point for growing companies concerned about long-term contracts.
Tip #7: Target specific industries with tailored messaging
Not all businesses have the same needs. Tailor marketing to verticals like financial services, nonprofits, or Fortune 500 companies by showcasing your experience managing the unique challenges of their industries.
Highlighting services like analytics, supply chain management, or cloud computing helps show prospects that your MSP understands their world and offers specialized solutions.
Tip #8: Offer a single point of contact for everything
Complexity kills deals. When businesses are juggling multiple vendors, it becomes a hassle.
In marketing efforts, highlight that your MSP is a company offering a single point of contact for all things IT—from managed print to technical support services.
This simplifies vendor management, speeds up service requests, and ensures accountability. Offering comprehensive solutions under one roof positions the MSP as a strategic partner, not just a service provider.
Need help with your MSP marketing? Contact MSP Launchpad now!
Building and growing a successful managed service provider business takes more than knowing what MSPs are. It takes knowing how to start an MSP, mastering how to sell managed services, and developing a real strategy for selling managed services over the long term.
At MSP Launchpad, we specialize in helping MSPs reach their target market, position their service offerings effectively, and create demand for services like managed IT services, remote monitoring, cybersecurity, patch management, and more.
Whether you're targeting small and medium-sized businesses, nonprofits, or larger enterprises, our team knows how to build campaigns that convert.
Don't let outdated marketing slow down your growth. Get the support you need to focus on improving your services without worrying about extended gaps in your pipeline.
Frequently asked questions
What is an MSP, and how does a managed service provider support businesses?
An MSP (or managed service provider) supports businesses by delivering a defined set of day-to-day management services that maintain and optimize IT infrastructure, cybersecurity, network monitoring, and cloud environments.
MSPs allow companies to outsource essential IT operations instead of relying solely on in-house IT teams. It's also a major reason many businesses explore how to start a managed service provider business themselves.
What services do MSPs offer to improve service delivery and technical support?
What are MSPs? MSPs offer a range of services, including remote monitoring and management, managed security, patch management, service desk assistance, and support services.
These management services are designed to deliver consistent service quality and a proactive level of service that strengthens a company’s overall service delivery and responsiveness.
How does a managed services business model benefit small and medium-sized businesses?
The managed services business model benefits small and medium-sized businesses by offering flexible, scalable support for IT infrastructure at a fixed monthly charge.
MSPs enable growing companies to focus on their core business operations while receiving expert support, fast service request handling, and protection against system downtimes or service interruptions.
Why is a service level agreement (SLA) important when partnering with the right MSP?
A strong service level agreement clearly defines the expectations for service quality, response times, and issue resolution between the business and the right MSP.
An SLA acts as a built-in accountability measure and is crucial for companies that want reliable support without surprises. It's one of the first things you should plan for if you're learning how to start an MSP.
What types of services may MSPs deliver to businesses looking to outsource IT?
MSPs may deliver various types of services, such as analytics insights, cloud computing solutions, infrastructure management, and managed print services.
MSPs may deliver their own native services or partner with vendors to offer services like endpoint security, disaster recovery, and value-added services tailored to different industries.
How can MSPs help nonprofits and government agencies perform critical IT functions?
Nonprofits and government agencies hire MSPs to perform a defined set of essential IT tasks. These agencies hire MSPs to perform cybersecurity protection, network optimization, management of IT infrastructure, and cloud services that ensure business continuity.
By relying on understanding what MSPs are, organizations improve resilience without worrying about extended system downtimes.
What makes pure-play MSPs different from other types of MSPs?
Pure-play MSPs specialize in a narrower service model, often focusing on a single point of contact for one vendor or technology. In contrast, full-service MSPs offer a wide range of solutions spanning cybersecurity, network operations, and cloud management.
Choosing the right types of MSPs depends on business size, the complexity of needs, and desired control over technology partnerships.
How did the managed services industry emerge, and what does the future look like?
The emergence of application service providers in the 1990s, with the emergence of cloud computing, laid the foundation for today's MSP industry.
Today, global managed service providers and MSP partners continue expanding their offerings, providing services across industries such as financial services, healthcare, and education.
Future MSPs will continue to focus on improving their services and giving clients access to the latest technologies with efficiency and agility.
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