Definition
An MSP, or managed service provider, is a company that runs IT for its clients on an ongoing basis, usually for a monthly fee. MSPs often manage devices, networks, cloud apps, backups and help desk support. Many serve small and mid-sized businesses that lack their own IT staff.
MSPs buy differently than traditional resellers. They often want monthly, per-user or per-device pricing, multi-tenant management tools and products they can bundle into their own service plans.
Because MSPs control what their clients use, one MSP can bring many end customers at once. Vendors that sell to MSPs need licensing and support built for that model.
In practice
An MSP adds a backup product to its standard service plan and rolls it out to all of its client companies under one management console.