Guide

What is a managed service provider?

A managed service provider (MSP) is a company that runs part or all of your business IT for an ongoing fee, such as your network, computers, cybersecurity, cloud services and help desk. Instead of calling someone when something breaks, you have a team that monitors, maintains and supports your systems every day.

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Updated November 2026

The short version

  • An MSP manages IT on an ongoing basis under a service agreement, rather than billing for each repair.
  • Services usually include networks, devices, cybersecurity, cloud, backup and a help desk.
  • You can hand over everything, or keep in-house IT staff and share the work (co-managed IT).

What a managed service provider does

Gartner describes an MSP as a provider that delivers services such as network, application, infrastructure and security through ongoing support and active administration, at your premises, in the MSP's data center or in a third-party data center.

In practice, an MSP takes responsibility for defined parts of your technology. The services it manages are listed in a service agreement, so both sides know what is covered and how support works.

  • Network: switches, Wi-Fi, firewalls and the links between locations
  • Devices: computer setup, updates and day-to-day support
  • Cybersecurity: malware protection, email security, filtering and staff training
  • Cloud: Microsoft 365, Google for Business and cloud servers
  • Backup and recovery for your files and systems
  • A help desk employees can call when something goes wrong

Managed services vs break-fix IT

Break-fix means you call a technician when something stops working and pay for that repair. Managed services means a provider looks after your systems all the time, so many problems are caught or prevented before they stop work.

When they help
Break-fix IT: After something breaks
Managed service provider: Ongoing, including monitoring and updates
How you pay
Break-fix IT: Per repair or per hour
Managed service provider: An ongoing fee for defined services
What is covered
Break-fix IT: The problem in front of them
Managed service provider: Services listed in your agreement
Planning
Break-fix IT: Rarely included
Managed service provider: Recommendations as your business grows
Good fit for
Break-fix IT: Very occasional, simple needs
Managed service provider: Businesses that depend on their technology every day

MSP, in-house IT or co-managed IT?

Fully managed fits if

  • You have no IT staff, or they are stretched thin
  • You want one team accountable for your technology
  • You need help around the clock
  • You would rather focus on running the business

Co-managed fits if

  • You have IT staff who want to keep some work
  • You need extra coverage for nights and weekends
  • You want specialists for network or cybersecurity
  • You may hand over more later

With co-managed IT, your IT staff keep the work they want to handle and the MSP manages the rest, as listed in your service agreement. Many businesses start co-managed and move to fully managed over time.

How managed services are priced

MSPs usually charge an ongoing fee for the services in your agreement, rather than billing for each repair. Some services are priced per user or per device, and projects such as new installations are often quoted separately.

At 5x5, managed desktop is priced per user, and other services are quoted based on what your business needs. The first IT consultation is free.

How to choose a managed service provider

Ask each provider these questions before you sign:

  • What are your support hours, and how fast do you answer tickets?
  • Is your support team based in the US?
  • Which services are listed in the agreement, and what costs extra?
  • Can you work with the equipment and cloud platforms we already use?
  • How do you handle cybersecurity, backup and recovery?
  • Do you also handle our internet connection, or will we deal with a separate carrier?
  • Can you work alongside our in-house IT staff?

How 5x5 Telecom can help

5x5 Telecom manages networks, Wi-Fi, computers, Microsoft 365, cloud services, backup, cybersecurity and help desk for businesses of every size. Because we can also run your internet connection and phones, one team owns the whole problem, from the line coming into the building to every desk.

Our 24/7 US-based support team answers every ticket within 60 minutes. Start with a free IT consultation: we look at your current setup and the age of key hardware and share general recommendations. Detailed testing and hands-on work are scoped in the plan we propose.

Sources

FAQ

Managed service provider questions

  • MSP stands for managed service provider: a company that manages part or all of a business's IT on an ongoing basis under a service agreement.

Start with a free IT consultation

Tell us about your business and we will review your setup and share general recommendations, at no cost.

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