Defining MSP

As part of our ongoing work in the xSP arena, many analysts here at Enterprise Management Associates have joined heated discussions about the true definition of a management service provider.

The term MSP was introduced to the industry late last fall. What MSPs do is not so easy to define, particularly as the marketing buzz surrounding this new acronym gets more intense.

We've seen industry analysts and journalists assign MSP designations to companies, and businesses call themselves MSPs just to join the fray.

And finally, at PC Expo last month, the MSP Association made its presence known. The association was established with 19 founding members intent on defining and promoting the MSP market through education and research. Among the goals of the international association are to define standards and establish best practices. The association has adopted the following as its definition of an MSP: "An MSP delivers information technology infrastructure management services over a network to multiple customers on a subscription basis."

So how are MSPs different from all the other xSPs in the market today? Primarily because information technology infrastructure management services are completely transparent to end users. Only the MSP IT staff uses the tools; whereas with application service providers, for example, end users interface directly with the applications being delivered.

And what are the advantages of using an MSP's services?

MSPs take the complexity out of managing your network infrastructure. With an MSP, companies don't have to worry about monitoring, measuring and reporting on networks and systems.

An MSP assumes the burden of staying current with new technologies and allows a firm to stay focused on its core competencies instead of buying, maintaining and upgrading management systems. MSPs also can help relieve the shortage of skilled technical personnel through outsourcing.

Only time will tell if the formation of the MSP Association will aid the players in this market and their customers.

Martha Young is a senior analyst at Enterprise Management Associates, a high-tech industry analyst firm Boulder, Colo. EMA focuses exclusively on the management software and services market. Martha has been performing market research and analysis for over 10 years and has worked extensively with leading industry players. She has written for various national and international industry trade journals. She can be reached at myoung@enterprisemanagement.com.

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