5 Managed Service Provider (MSP) Myths

As organizations become more reliant on information technology, many lack the expertise to implement and manage modern IT solutions on their own effectively. A partnership with a managed service provider (MSP) seems like the obvious choice, yet myths persist – often clouding the decision-making process. 

While there are some genuine challenges to consider with outsourcing IT services, many common MSP myths are simply untrue. Let’s clear up the confusion and debunk the five most pervasive misconceptions surrounding MSPs. 

Debunking 5 MSP Myths

1. Outsourcing Is More Expensive Than Doing Everything In-house

Many decision-makers worry that outsourcing to an MSP would drain their limited IT budgets. Their reasoning is often based on a flawed assumption that in-house IT while requiring a vast capital expenditure (CapEx) investment, has no significant operational expenditure (OpEx) costs. That’s, of course, not true at all.  

Most of the costs associated with in-house IT are related to the OpEx aspect. It includes everything from the electricity bill to daily maintenance, backups, and other administrative tasks. These tasks require a knowledgeable, experienced professional – often expensive to employ. 

A few years ago, a Cisco study revealed that MSPs could help customers realize a 40 percent reduction in IT expenditures. That explains why the top reason that organizations opt to work with MSPs (chosen by 51 percent of respondents to Infrascale’s survey) is to save costs. 

cost savings

2. MSPs Make Their Customers Less Secure

Much has been said and written about third-party data breaches, which happen when vital data is stolen from a third-party vendor or when the vendor’s access rights are used to infiltrate protected systems. 

According to a report released by SecureLink and Ponemon Institute, a data breach caused by a third party is something 51 percent of organizations have already experienced. So, businesses must remain vigilant. 

But just because a partnership with an MSP increases the likelihood of one specific cyber threat capable of causing a data breach doesn’t mean it makes the organization less secure overall. 

There are many other threats organizations of all sizes must actively protect themselves against, including: 

  • Attacks on IoT devices 
  • Zero-days 

A cybersecurity-savvy MSP, like Teal, can equip its customers with state-of-the-art defenses and hands-on training to keep these threats at bay. Ultimately, this makes them less likely to suffer a costly and reputation-damaging data breach. 

Small Business Cybersecurity Cost Guide

Learn the financial impact of cyber threats on your business’s data. Plus, unlock the financial implications of in-house vs. outsourced cybersecurity. 

3. Organizations That Outsource Lose Control Over Their IT

Most organizations rely on their IT infrastructure. So, the mere thought of depending on a third party when it comes to its management may be daunting.  

Is the MSP 100% legitimate? 

What if they go out of business?  

What if they suddenly experience a significant outage and cannot provide services? 

These and other questions are what many small business owners think about when deciding whether outsourcing to an MSP is a good idea. That’s why reputable MSPs clearly define the level of service customers can expect and the metrics by which that service is measured in a service-level agreement (SLA). 

A robust SLA provides a satisfactory level of control. Organizations are free to increase it further by maintaining an internal IT team to manage certain aspects of day-to-day operations and, if necessary, step in when the MSP fails to meet the SLA. 

4. Providers of Managed Services Target Only Large Enterprises

Small and medium-sized businesses (SMBs) sometimes don’t take advantage of managed services because they believe MSPs are interested only in partnerships with large enterprises. This myth may stem from the fact that enterprises and large organizations, in general, have historically been among the first to embrace innovative business practices. 

Today, every organization must embrace digitalization to stay competitive. For SMBs with limited resources, this can be particularly challenging. Fortunately, managed service providers (MSPs) are ready to support SMBs, offering IT solutions for even the most complex or straightforward needs. 

One IT area where outsourcing to a managed services provider has already become the norm is cybersecurity. According to Kaspersky’s Global Corporate IT Security Risks Survey, which surveyed over 5,000 IT professionals, 70% of organizations in 2021 planned to strengthen their internal IT security teams within the following year by leveraging MSPs.  

These organizations recognized that MSPs could offer enterprise-grade cybersecurity solutions, delivering the same level of protection typically reserved for large enterprises. 

5. There are Minimal Differences Between Managed Services Providers

It’s true that some MSPs offer the same white-label products and endorse the same solutions and services, such as Microsoft 365 or Azure. But it would be unfair to say that all MSPs are the same. 

To start with, each MSP brings a slightly different set of skills and experience to the table, such as: 

  • MSPs that focus exclusively on cybersecurity 
  • MSPs that help organizations make the switch to the cloud 
  • MSPs that do it all

When you zero in your focus on a specific category of managed services providers, you’ll quickly discover significant differences in the SLAs they provide, the industry best practices and standards they adhere to, and their willingness to meet your expectations. 

Learn everything you need to know about an MSP partnership. 

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