MSP companies deliver information technology (IT) infrastructure management services to multiple customers over a network on a subscription basis. MSPs operate similarly to Application Service Providers (ASPs) in that they deliver services via a network that are billed to their clients. Unlike ASPs, which deliver business applications to end users, MSPs deliver system management services to IT departments and other customers who manage their own technology assets.

A Management Service Provider delivers information technology (IT) infrastructure management services to multiple customers over a network on a subscription basis. Some of these companies are traditional network management companies or software vendors that have created a service provider delivery model for their products, solutions and services. Some of these companies are "new economy" companies that have focused on delivering their services to the growing e-business market-often through the Internet.

The types of solutions that Management Service Providers typically offer include products and services that enable companies or individuals to better manage computer systems, networks, databases and applications, as well as the performance and availability of those critical IT resources.

An MSP offers a convenient, cost-effective alternative to the complex and burdensome task of managing systems and networks by yourself or by a specialized IT group in your company. This approach furnishes a practical solution to the continuing shortage of qualified IT professionals and the increasing complexity of systems, networks, databases and applications.

1. E-Business systems management solutions and Internet Transaction Management
2. Remote 24x7x365 monitoring and management of complex, high-end enterprise solutions
3. 24x7 monitoring, notification and reporting on Internet and IT Infrastructures hosted in both co-located and internal data centers
4. Security management systems for security assessment, policy enforcement and intrusion detection. Customized, managed security solutions by combining the capabilities of firewalls, intrusion detection, routers, VPN, anti-virus technology, scanning, and Web filtering with a thorough ADDME (Assess, Design, Deploy, Manage/Support, Educate) analysis
5. Web-based remote system management (OS-level) support services for the enterprise, for the Linux operating system
6. Remote network management services delivering life-cycle management of WAN, LAN and network security to its customers. Services include network design, installation, and 24x7 operations management offering guaranteed performance.
7. Design, and implementation to 24x7 management, monitoring and real-time, Web-based reporting on the operation of mission-critical server-based applications
8. Proactively monitor faults, assets, performance and security across their network, systems and application environments
9. Full-range integrated IT infrastructure management, including PC inventory and asset management, help desk trouble ticket creation and tracking, server management, network monitoring and Web monitoring, via the Web.
10. Managing, Maintaining and Monitoring mission-critical sites from a network operations center.
11. Gaining instant control of PC assets through intelligent, network-based technology that automatically collects a wide variety of hardware, software and configuration data about networked computers and generates PC "network-at-a-glance" reports and detailed PC asset reports.

Management service providers (MSPs) are specialized application service providers that manage infrastructure resources or applications.They offer tool implementation and hosting,cost savings,rapid time to value,expertise to supplement staff resources,and an outside perspective

ONVENTIONAL WISDOM WARNS companies against outsourcing their core competencies, and, at one time, management fell into this category. Now, however, especially with the rise of E- business, organizations require exceptional management to survive. Since this is not always available in-house, management ser- vice providers (MSP) are springing up to fill the need. MSPs are an emerging type of vendor that lets customers outsource various aspects of information technology (IT) management. If an MSP can guarantee that an organization’s network or applications will remain up and running and downtime will be nearly or com- pletely eliminated, an organization should seriously consider this option. MSPs appeal particularly to small and mid- sized companies, as well as E-businesses, as an alternative to the expense of building their own management systems. While these busi- nesses might require 24x7 availability, they lack the resources to ensure this uptime by providing their own management. However, an MSP can do so, notifying the customer of potential problems or slowdowns.

In fact, some analysts predict that 50 to 70 percent of organizations will use a service provider to assist in building or hosting their E-commerce applications. In-house management costs are steep and include management platforms and point products; management integration tools such as a central console; and staff to install, configure, test, and maintain systems. Businesses must also gauge the cost of down- time. The cost savings attributed to MSPs can be substantial. Companies save not only the hefty price of the software itself, but the cost of internally hosting management software, which is estimated at three to nine times the cost of the software, plus ongoing staff costs. Still, in turning to MSPs, IT managers give up some control over and ability to view their infrastructures.

Also, because the services might lack the functionality of traditional management platforms, flexibility is an issue; it becomes hard to add new technologies and systems to the IT infrastructure. Therefore, if IT is critical to the organization, such as in the financial services and telecommunications industries, companies might want to retain management control. According to one analyst, there are approximately 70 vendors in the management service provider category. These include Manage.com, Luminate.net, SilverBack Technologies, NetSolve, Envive Corp., Freshware, StrataSource, and SiteLine. By end of 2000

Market analysts expect the demand for Management Service Providers (MSPs) to grow exponentially as an attractive alternative to internally run IT management. The need for impeccably functioning systems and networks, fueled by the burgeoning Internet economy, continues to raise expectations and requirements for robust performance. In the future, MSPs will take the burden off IT personnel and administrative personnel responsible for efficient system operations.