How to Choose a Managed Service Provider

Choosing the right managed service provider (MSP) is a critical decision for businesses. Especially for businesses looking to streamline their IT operations and enhance their technological capabilities. With the right MSP, companies can focus on their core activities while leaving the complexities of IT management to experts. 

This guide will walk you through everything you need to know to make an informed decision when selecting an MSP.

WHAT IS A MSP?

Managed service providers (MSPs) are third-party companies remotely managing a client's IT infrastructure and end-user systems. MSPs offer various services, including network management, security, data backup, and recovery, as well as cloud services. By outsourcing these functions, businesses can reduce costs, improve efficiency, and ensure their IT systems are up-to-date and secure.

Types of Services Offered by MSPs:

1. Network Management: Includes monitoring and managing network infrastructure to ensure optimal performance.
2. Security Services: Encompasses threat detection, mitigation, and compliance management.
3. Data Backup and Recovery: Ensures that data is regularly backed up and can be quickly restored in case of a disaster.
   
   
4. Cloud Services: Includes migration to cloud platforms, management of cloud infrastructure, and optimization of cloud resources.
5. IT Support Services: Provides technical support and troubleshooting for end-users.

WHY YOU NEED A MANAGED SERVICE PROVIDER

Many businesses, regardless of their size or industry, can benefit from using an MSP. The key advantages include:

• Cost Savings: MSPs often provide services at a fraction of the cost of in-house IT departments.
• Expertise and Experience: MSPs have specialized knowledge and experience that can help optimize your IT infrastructure.
• Focus on Core Business: By outsourcing IT management, businesses can concentrate on their primary operations and strategic goals.
• Scalability: MSPs offer flexible solutions that can grow with your business.

Additional Benefits:

• Access to Latest Technology: MSPs keep up with the latest technology trends and can help implement new technologies in your business.
• Enhanced Security: MSPs offer advanced security solutions to protect your business from cyber threats.
• Compliance Management: MSPs help ensure that your business complies with relevant regulations and standards.

HOW TO CHOOSE THE BEST MSP PREVAILING IN THE MARKET

Choosing the best MSP requires a thorough understanding of your business needs and a careful evaluation of potential providers. Here are some steps to guide you:

UNDERSTAND YOUR BUSINESS NEEDS AND GOALS

Before you start evaluating MSPs, it's crucial to have a clear understanding of your business needs and goals. Assess your current IT infrastructure, identify areas for improvement, and define your long-term IT objectives. This will help you determine what you require from an MSP and ensure that you select a provider that aligns with your business strategy.

EVALUATING POTENTIAL MSPS

When evaluating potential MSPs, consider the following factors:

• Research and Reputation: Look for MSPs with a strong reputation and positive customer reviews. Check their track record and ask for references from existing clients.
• Certifications and Partnerships: Ensure the MSP has relevant certifications and partnerships with major technology vendors. This demonstrates their expertise and commitment to quality.
• Range of Services Offered: Choose an MSP that offers a comprehensive suite of services tailored to your needs. This ensures that you have access to all the IT solutions you require from a single provider.

5  KEY QUESTIONS TO ASK WHEN CHOOSING AN MSP

Now that you have a clearer picture of your IT requirements, let's explore five crucial questions to ask when evaluating potential MSPs:

1. What pricing model do you use?

Managed Service Providers offer a variety of pricing and service models to cater to different business needs and budgets. Here's a breakdown of some common models:

• Explanation: This is a straightforward model where businesses pay a fixed monthly fee for each device (computer, laptop, server, etc.) supported by the MSP.
• Pros: Easy to understand and budget for, ideal for businesses with a predictable number of devices.
• Cons: Doesn't account for varying resource usage across devices, and can become expensive for businesses with a large number of devices.

• Explanation: Similar to per-device pricing, businesses pay a flat monthly fee for each user the MSP supports. This might include employees, contractors, or remote workers.
• Pros: Simple to understand and manage, suitable for businesses with a stable user base.
• Cons: Doesn't account for individual user needs (some users may require more support than others), and may not be cost-effective if users have multiple devices.

• Explanation: The MSP offers different service packages with varying levels of support at different price points. These packages might be categorized as "Basic," "Standard," or "Premium," with each tier offering a specific set of services.
• Pros: Allows businesses to choose a package that aligns with their needs and budget, and provides flexibility for scaling service levels as needs evolve.
• Cons: Can be confusing if the tiers are not well defined, businesses may end up paying for services they don't need if they choose a higher tier for basic needs.

• Explanation: This model is used for specific IT projects undertaken by the MSP, such as network migration, security assessment, or software implementation.
• Pros: Suitable for one-time projects, provides clear cost estimates upfront.
• Cons: May not be ideal for ongoing management needs, and requires a clear understanding of project scope to avoid cost overruns.

• Explanation: Businesses pay a fixed monthly retainer fee for a predefined set of services. This model often includes unlimited support within a certain timeframe.
• Pros: Predictable costs, encourages proactive maintenance by the MSP, and can be cost-effective for businesses with consistent support needs.
• Cons: May not be suitable for businesses with unpredictable support requirements, and might not include all necessary services in the base package.

Some MSPs use a hybrid pricing model. For example, at Sagiss we used fixed-fee pricing for proactive and security services and charged an hourly fee for reactive services. This keeps clients from overpaying for services they don’t need or use. It also makes pricing easier for those clients who have an IT team that we are helping support proactively.

Pro tip: The best pricing and service model for your business depends on your specific requirements, budget, and future growth plans. Consider factors like the number of devices and users, the complexity of your IT environment, and the level of ongoing support you anticipate needing. When choosing an MSP, discuss your needs with potential partners and understand their pricing structures so you can make an informed decision.

2. How do you ensure the security of my data?

Cybersecurity is a top priority for any business. When selecting an MSP, understand their approach to data security in detail. Ask them about the security measures they implement, such as:

• Data encryption
• Multi-factor authentication
• Regular security audits
• Incident response plans

Additionally, inquire about their compliance certifications, such as SOC 2 or HIPAA, which demonstrate their commitment to data security best practices.

Pro Tip: Don't hesitate to ask for references from other businesses in your industry. Speaking with existing MSP clients can provide valuable insights into their security practices and overall service quality.

3. How do you handle support requests?

Prompt and efficient technical support is crucial for minimizing downtime and maintaining business continuity. Ask potential MSPs about their support model:

• Do they offer 24/7 support?
• What are their average response times for support tickets?
• How do they handle escalated issues?

Inquire about their communication channels (phone, email, online portal) and ensure they align with your preferred method of contacting support.

In addition, consider whether local support is critical for you. All of our employees at Sagiss are full-time employees who are Dallas-based. That gives us the ability to be on-site for local clients if they need or want that kind of relationship.

Pro Tip: Consider your team's technical capabilities when evaluating support models. If you have a highly technical in-house IT team, a basic email support model might suffice. However, businesses with limited internal technical expertise might benefit from a more comprehensive model with 24/7 phone support and dedicated account managers.

4. How do you scale your services to accommodate my growth?

Recognize that while you’re asking how to choose a managed service provider now, your organization’s IT needs will evolve as your business expands. Choosing an MSP that can adapt to your growth trajectory is critical. Ask them about their scalability plans:

• Can they easily increase or decrease services based on your requirements?
• Do they have experience supporting businesses in your industry and at your growth stage?

The ideal MSP will understand your growth plans and offer solutions that scale alongside your business. This ensures your IT infrastructure remains robust and secure as you expand.

Pro Tip: Inquire about the MSP's experience with migration projects. If you plan to transition from an on-premises IT environment to a cloud-based solution, ensure the MSP has the expertise to manage that shift.

5. HOW DO YOU STAY UP-TO-DATE WITH THE LATEST TECHNOLOGIES, AND HOW DO YOU COMMUNICATE THOSE ADVANCEMENTS TO YOUR CLIENTS?

The IT landscape is constantly evolving. It's crucial to partner with an MSP that embraces innovation and stays current with the latest technologies. Ask them about their approach to staying up-to-date:

• Do they attend industry conferences and training sessions?
• Do they invest in certifications for their staff?
• How do they communicate technology advancements to their clients and how can these advancements benefit your business?

A forward-thinking MSP will proactively identify new technologies that can optimize your IT infrastructure and support your growth. They should also have a clear communication strategy to keep you informed about these advancements and their potential impact on your business.

Pro Tip: Look for MSPs that offer ongoing consultations as part of their service. This allows you to discuss your evolving IT needs and explore how emerging technologies can benefit your specific business goals.

COMMON MISCONCEPTIONS ABOUT MSPS

Address any misconceptions you may have about MSPs, such as concerns about losing control over your IT systems. MSPs work as partners to support your IT needs while allowing you to retain control and oversight of your IT strategy.

Common Misconceptions:

• Loss of Control: Clarify that MSPs work in partnership with your business.
• High Costs: Explain the cost benefits and value provided by MSPs.
• Security Risks: Highlight the enhanced security measures offered by MSPs.

THE PROCESS OF TRANSITIONING TO A MANAGED SERVICE PROVIDER

Transitioning to an MSP can be smooth with the right planning and support:

INITIAL ASSESSMENT AND PLANNING

Work with the MSP to assess your current IT infrastructure and develop a transition plan. A thorough assessment helps identify areas for improvement and ensures that the transition is aligned with your business goals.

Assessment Steps:

• Infrastructure Review: Evaluate current IT systems and identify areas for improvement.
• Goal Setting: Define your IT objectives and desired outcomes.
• Gap Analysis: Identify gaps between current capabilities and future needs.

IMPLEMENTATION AND ONBOARDING

The MSP should provide a clear implementation and onboarding process to ensure a seamless transition. Effective onboarding includes setting up new systems, migrating data, and training your team to use the new services.

Onboarding Process:

• System Setup: Configure and deploy new IT systems.
• Data Migration: Transfer data from old systems to new platforms.
• Training: Provide training for your team on new tools and processes.

CONTINUOUS IMPROVEMENT AND OPTIMIZATION

The MSP should continuously monitor and optimize your IT systems to ensure they meet your evolving needs. Regular reviews and updates help maintain the performance and security of your IT infrastructure, supporting your long-term business success.

Optimization Techniques:

• Regular Audits: Conduct periodic reviews of IT systems and processes.
• Performance Tuning: Optimize system performance based on usage patterns.
• Feedback Loop: Incorporate feedback from your team to improve services.

COMMON PITFALLS TO AVOID WHEN CHOOSING AN MSP

Avoid these common mistakes when selecting an MSP:

FOCUSING SOLELY ON COST

Don't choose an MSP based only on cost; consider the value and quality of their services. While cost is an important factor, it should not be the sole determinant. Prioritize value, expertise, and the ability to meet your specific needs.

Value Over Cost:

• Quality of Service: Focus on the quality and reliability of services.
• Comprehensive Solutions: Ensure the MSP offers a full range of services.
• Long-Term Benefits: Consider the long-term benefits of partnering with a high-quality MSP.

OVERLOOKING THE IMPORTANCE OF CULTURAL FIT

Ensure the MSP's culture and values align with your business to facilitate a successful partnership. Cultural fit is essential for effective collaboration and communication, helping to build a strong, productive relationship.

Cultural Alignment:

• Shared Values: Look for an MSP with similar values and work ethic.
• Team Compatibility: Ensure the MSP's team is compatible with your own.
• Collaborative Culture: Choose an MSP that promotes collaboration and teamwork.

IGNORING THE NEED FOR FUTURE-PROOF SOLUTIONS

Choose an MSP that offers scalable and future-proof solutions to support your business growth. Future-proof solutions ensure that your IT infrastructure can adapt to changing needs and technological advancements, supporting your long-term success.

Future-Proofing:

• Scalable Infrastructure: Ensure the MSP offers scalable IT solutions.
• Technology Updates: Look for an MSP that stays current with technology trends.
• Proactive Planning: Choose an MSP that plans for future growth and changes.

UNDERSTANDING THE MSP CONTRACT AND TERMS OF SERVICE

Before finalizing your decision, it's crucial to thoroughly review and understand the MSP's contract and terms of service. This ensures that both parties have a clear understanding of their responsibilities and expectations.

Contract Review:

• Service Inclusions: Ensure all agreed-upon services are listed.
• Exclusions: Be aware of what is not covered under the contract.
• Termination Clauses: Understand the terms for contract termination and any associated fees.

THE ROLE OF TECHNOLOGY INNOVATION IN MSP SERVICES

Technology is constantly evolving, and a good MSP should stay at the forefront of innovation to provide the best possible services. Look for MSPs that are committed to adopting and integrating new technologies into their service offerings.

Innovation Indicators:

• R&D Investment: Look for MSPs that invest in research and development.
• Technology Partnerships: Check if the MSP partners with leading technology providers.
• Adoption of Emerging Technologies: Ensure the MSP is knowledgeable about the latest tech trends and solutions.

ASSESSING CUSTOMER SATISFACTION AND REVIEWS

Customer satisfaction and reviews are valuable indicators of an MSP's performance and reliability. Take the time to read reviews and testimonials from other clients to get a sense of their experiences and satisfaction levels.

Review Sources:

• Online Reviews: Check platforms like Google, Yelp, and industry-specific review sites.
• Case Studies: Look for detailed case studies that showcase the MSP's work and results.
• Client Testimonials: Read testimonials on the MSP's website for additional insights.

MAKING THE RIGHT DECISION FOR YOUR BUSINESS

Choosing the right MSP is an investment in the future of your business. By understanding your needs, asking the right questions, and considering additional factors, you can select an MSP that becomes a trusted partner on your growth journey.

With a reliable and secure IT infrastructure managed by an expert MSP, you can focus on your core business activities and unlock the full growth potential of your company.

Ready to embark on your journey with the perfect MSP? We’d love to discuss your business goals with you and how Sagiss can help you meet them.