Introducing a new kind of service provider: the MSP

By Amy Schurr
Network World, 02/14/00

Not long ago, I received a letter announcing the Internet premiere of "The True Adventures of Sam Stone, IT PI," along with a bag of microwave popcorn. Curious, I went to www.inteqnet.com to check out the online serial. The title character is an ex-CIO who is dedicated to solving IT challenges.

This marketing promotion did a great job of capturing my attention. Once I viewed the episode, I learned that sponsor InteQ Corp. bills itself as the first management service provider (MSP). Now, that's a term I hadn't heard before. Maybe you haven't either, but the Gartner Group has.

Gartner analyst Stephen Elliot, who coined the term, says using an MSP is a good strategy for companies that want to gain control of their internal IT infrastructures. By employing an MSP, companies can off-load the job of monitoring, measuring and reporting on networks and systems, but still be responsible for their overall networks.

The appeal of the MSP model is that it eliminates the need for companies to buy, maintain or upgrade management systems. Along with reducing capital expenses, the approach lets businesses focus on their core competencies. This sounds like a good idea to me. Why bother with an unpleasant task if you can pay someone else to do it?

InteQ, of Burlington, Mass., was formed in 1995 as a network and systems management consulting firm. Eager to capitalize on a potentially lucrative market, the business re-invented itself as an MSP last month, according to President and CTO Yash Shah.

InteQ offers a group of subscription-based services, called InfraServices and targeted at enterprises and other service providers, that keep an eye on network performance, availability and capacity.

InfraWatch monitors your networks and applications and alerts you to critical events. Shah emphasizes that his company can assume responsibility for monitoring the entire infrastructure, including elements such as firewalls and e-commerce systems. InfraStream measures IT performance and delivers customizable reports that help you track and enforce service-level agreements. InteQ uses best-of-breed management wares and delivers its services through MSPnet, a sophisticated, secure high-speed network.

Shah didn't want to talk much about InteQ's pricing this early in the game, but did say that the company's pay-as-you-go, monthly subscriptions cost between $250 and $2,000 per managed component. "Financially it's a no-brainer decision," he says.

So far, InteQ has signed on three customers, including Manufacturer's Services. While it remains to be seen how much business the company can drum up, the fact that management platforms are notoriously expensive and difficult to implement gives it a good chance for success.

Would you consider using a MSP? Let me know at amy_schurr@nww.com.