As application service providers continue to garner press attention, companies offering a new service model are emerging on the scene. Management service providers offer infrastructure management services, typically delivered over a standard Internet connection or VPN.
Many MSPs are focusing on the small and midsize business market. As companies in this market are finding it very difficult to hire and retain skilled IT personnel, MSP services may be a solution. Another market driver for this space is the e-business phenomenon and its demanding 24-7 support requirements, which small companies cannot afford or simply choose not to staff.
Today, there is a lot of confusion in the industry about the MSP space. Some ASPs are repositioning themselves as MSPs, and other ASPs are adding MSP-like services. Traditional management software vendors are offering MSP-type services. The distinction is murky. The confusion is widespread, from potential users of MSP services, to potential MSP partners, to potential investors, and even to vendors marketing to MSPs. This model cannot succeed unless the industry first understands it, finds value in the model and then embraces it.
In an effort to clarify where the MSP market is today, Enterprise Management Associates (EMA) recently conducted a research project to map the current MSP landscape. EMA conducted an in-depth survey of companies that identify themselves as MSPs and investigated their business models, pricing models, service-level agreement practices, and business practices. One of the findings of this research shows that a majority of MSPs have been offering services for a year or less. It's clearly an emerging market with a rush of companies entering rapidly.
EMA also found a wide variety of offerings, from niche management services to broad management service offerings. Currently, MSPs are like snowflakes; no two seem to be alike. These differences encompass their business models, service offerings, management infrastructure and much more. This diversity can make it difficult for companies to select the MSP that suits their needs. As companies consider outsourcing the management of their infrastructures to MSPs, there are important issues and considerations that must be investigated. In any new area, information is the key to knowledge, and the MSP arena is no exception. EMA's user version of this research is designed to help companies better understand the MSP space, as well as prudently select appropriate MSP services.
As MSPs develop, the choices for MSP customers will certainly increase. More MSPs will emerge to try and capture a piece of the management services pie. And as this market continues to develop, being informed and understanding the MSP market will become more critical, as potential MSP customers must look past the marketing hype to make wise choices. The success of the MSP model depends on removing the confusion. Only time will tell if the MSP vendors and the MSP Association are successful in articulating their value proposition to the industry.
