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Managed IT Glossary

What is MSP (Managed Service Provider)?

A Managed Service Provider (MSP) is a company that remotely manages a client’s IT infrastructure, end-user systems, and technology services — usually for a flat, predictable monthly fee. MSPs shift IT from a reactive, break-fix cost center to a proactive, strategic function.

Blocks 99% of password attacks
Required by most cyber insurance
Core to SOC 2, HIPAA, PCI
How It Works

How MSP works

Three-step view of how it operates in practice.

1

Assess

The MSP reviews your environment, business processes, and pain points. They identify quick wins and longer-term priorities.

2

Onboard

Systems get monitored, documentation is built, users get support channels, and security controls are established.

3

Operate

Ongoing support, monitoring, patching, security, and strategic reviews on a predictable monthly cadence.

MSP Variants

MSP service models

A clear breakdown of the common variants.

Model

Break-fix

Pay per incident. Cheapest up front, unpredictable total cost. Rarely competitive today.

Most common

MSP (fully managed)

Time-based one-time codes from an app like Microsoft Authenticator or Google Authenticator. Offline-capable and phishing-resistant against many attacks.

Convenient

Co-managed

The user approves a sign-in with a tap on their phone. Easy to use but vulnerable to MFA fatigue attacks — always pair with number matching.

Strongest

MSSP

FIDO2 keys like YubiKey, or device-bound passkeys. Phishing-resistant by design — the key will not authenticate against a fake domain.

Why It Matters

Why MSP matters for SMBs

A Managed Service Provider (MSP) is a company that remotely manages a client’s IT infrastructure, end-user systems, and technology services — usually for a…

54%
of SMBs use an MSP for primary IT services, up from 44% in 2022
Source: CompTIA State of the Channel, 2024
Pitfalls

Common MSP mistakes

  • Choosing by price aloneThe cheapest MSP often becomes the most expensive when issues pile up. Service quality, response SLAs, and security capabilities matter more.
  • Unclear contract scopeAdmins, finance, and anyone with access to money or sensitive data should use an app or hardware key — never SMS alone.
  • No security integrationMSPs that bolt on security as an afterthought deliver weak outcomes. Integrated managed IT + security is the modern standard.
  • No business reviewsA good MSP meets with you quarterly to review performance, plan, and advise. Vendors who only show up during incidents aren’t partners.
Common Questions

MSP frequently asked questions

Most SMB MSP engagements run $100-$250 per user per month fully loaded, depending on service depth and security inclusion.
MSP covers IT broadly (endpoints, infrastructure, help desk, strategy). MSSP specializes in cybersecurity monitoring and response. Many modern providers do both.
Response SLA consistency, documented outcomes, security posture improvements, quarterly business reviews, and whether they proactively recommend (vs waiting for tickets).
Yes — this is the co-managed model. MSP provides specialist depth, after-hours coverage, and tools; internal team keeps context and relationships.
Have a documented recovery process before it happens. Typically an administrator verifies the user's identity through an out-of-band channel, temporarily disables MFA, and re-enrolls the user with a new device. Backup codes or a secondary security key reduce downtime.
Related Services

LogicalNet services related to MFA

Identity & Access Protection Primary

MFA enforcement, conditional access, least privilege, and identity monitoring.

Email Security

Phishing defense, account-takeover monitoring, and secure email gateways.
Related Terms

Related glossary terms

MSSP

Policies that adapt to device, location, and risk signals.

Co-Managed IT

A security model that verifies every request as if it came from an open network.

Fractional CIO

Give users only the access they need — nothing more.

NOC

FIDO2 keys and passkeys that cannot be proxied or replayed.
Identity & Access

Evaluating MSP options?

Talk to a LogicalNet identity expert. We will review your current environment, recommend the right MFA methods for each group of users, and help you deploy without disrupting the business.

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