If you have been looking at IT support for your business, you will have run into the term MSP. It stands for managed service provider, and it describes most of the IT companies that look after small and medium businesses in Australia. This guide explains what an MSP does, how MSPs charge, how the model compares with calling someone when something breaks and how to tell whether it suits your business.
The short answer
An MSP is a company that looks after your IT for a fixed monthly fee, under a written agreement that sets out what is covered and how fast they respond. Instead of paying per fix, you pay the MSP to keep your computers, accounts, security and systems running and to plan what comes next.
What an MSP does
The work varies by provider and plan, but a typical managed IT agreement for a business of 10 to 500 staff covers most of the following.
- Help desk. Your staff call, email or raise a ticket and an engineer fixes the problem, remotely or on site.
- Monitoring. Computers, servers, network gear and backups are watched around the clock, so many problems are fixed before anyone notices.
- Patching. Security updates for Windows, Microsoft 365 apps, browsers and other software are tested and installed on a schedule.
- Security. Endpoint protection, email filtering, multi-factor authentication and, on most plans now, a security operations centre that responds to alerts after hours.
- Backup. Servers, Microsoft 365 and key systems backed up, with restores tested.
- Microsoft 365 and cloud. Accounts, licences, SharePoint, Teams and cloud servers set up and kept tidy.
- Vendors and licences. One point of contact for the internet provider, software vendors and hardware suppliers.
- Planning. Regular reviews, a technology roadmap and budget advice, sometimes as a virtual CIO service.
How MSPs charge
Most MSPs in Australia charge per user or per device, per month. The fee covers an agreed set of services, and anything outside it, such as a new office fit out, is quoted as a project.
As a guide, support only plans typically cost $90 to $150 per user per month excluding GST, and plans that include security typically cost $130 to $220. Hourly rates for business IT support in Perth usually sit between $150 and $220 excluding GST. Our guide to managed IT services pricing in Australia breaks down what each line usually costs, and you can get an instant price for your business in two minutes.
MSP, break fix or in house IT
There are three common ways for a business to run its IT. Each suits a different situation.
| Break fix IT support | Managed service provider | In house IT staff | |
|---|---|---|---|
| How you pay | By the hour, when something breaks | A fixed monthly fee per user or device | Salaries, super, training and tools |
| Who prevents problems | Nobody is paid to | The MSP, as part of the fee | Your IT staff, if they have time |
| Security and monitoring | Usually not included | Included on most plans, often 24/7 | Hard to cover outside business hours |
| Cover for leave and sickness | Not an issue | A team, so always covered | A gap unless you employ two people |
| Cost you can predict | No | Yes | Mostly, until someone leaves |
| Best for | Very small offices with simple needs | Most businesses of 10 to 500 staff | Larger businesses, often alongside an MSP |
Break fix support looks cheaper until something goes badly wrong, because nobody is paid to keep problems from happening. A single IT person often costs more than an MSP once super, leave, training and tools are added, and one person cannot cover the help desk, security and projects at once. That is why many businesses with their own IT staff use an MSP for part of the work, an arrangement called co-managed IT.
MSP or MSSP
You will also see the term MSSP, a managed security service provider. An MSSP focuses on security: watching for attacks, responding to them and running the controls that keep attackers out. Ten years ago most MSPs left security to someone else. Today most include it, because a business cannot separate keeping its systems running from keeping them secure. If you are comparing providers, ask exactly which security tools are included and who responds to an alert at 2am. See managed security services for how we do it.
Signs your business needs an MSP
- The same problems keep coming back, and nobody looks at why.
- One person, often not an IT professional, holds all the passwords.
- You are not sure whether your backups would work, or when a restore was last tested.
- A client, insurer or tender has asked about the Essential Eight or your security controls.
- Staff lose time every week to slow computers, printers or Wi-Fi.
- IT costs are unpredictable, with large bills when something breaks.
- The business is growing faster than its IT setup.
If three or more of those sound familiar, a managed service is worth pricing. A free IT health check is a quick way to find out where you stand first.
How to choose an MSP
Most MSP websites sound alike, so judge them on what they will put in writing.
- Response and resolution targets for each priority, in the contract.
- Where the engineers are. Ask who answers the phone and whether any work goes offshore.
- Security included, and who watches the alerts outside business hours.
- Independent certification of the MSP’s own security, such as ISO 27001.
- A price you can follow, broken down per user or per device, with the extras listed.
- Reporting and reviews, so you can see the work being done.
- Clients like you. Ask to speak to one of a similar size.
Our guides to choosing an IT support company in Perth and writing a managed IT services RFP go into more detail.
What working with an MSP looks like
The first six to eight weeks are onboarding: the MSP documents your systems, installs its monitoring, takes over admin access and fixes anything urgent it finds. After that, your staff contact the service desk when they need help, the MSP handles patching, security and backups in the background, and you meet regularly to review tickets, security and plans for the year ahead.
Austin Technology is an MSP based in Subiaco, supporting businesses of 10 to 500 staff since 2012. See managed IT services, IT support for small business or call us on 1300 787 429.
MSP questions
What does MSP stand for?
MSP stands for managed service provider, sometimes written managed services provider. In IT it means a company that looks after a business’s technology for a fixed monthly fee, under a written agreement.
What is the difference between an MSP and IT support?
IT support usually means fixing problems when someone asks. An MSP also does the work that stops problems happening: monitoring, patching, security, backups, licences and planning. It is paid to keep things running rather than paid per fix.
How much does an MSP cost in Australia?
Support only plans typically cost $90 to $150 per user per month excluding GST, and plans that include security typically cost $130 to $220. See what managed IT services cost in Australia for the detail.
What is the difference between an MSP and an MSSP?
An MSSP, or managed security service provider, focuses on security: monitoring for attacks, responding to them and running security controls. Many MSPs now include security in their plans. See managed security services.
Can an MSP work with our own IT staff?
Yes. This is called co-managed IT. Your IT staff keep the work they know best and the MSP covers the rest, such as the help desk, after hours, security or projects. See co-managed IT.
How long does it take to move to a new MSP?
For a business of 20 to 100 staff, most moves take six to eight weeks, depending on how much documentation the old provider hands over and how many systems need to be brought up to standard.
