What does a managed IT provider actually do?
A managed IT provider, also called a managed service provider or MSP, runs your business's technology for a fixed monthly fee instead of charging each time something breaks. Here is what that covers day to day, and how to tell if you need one.
The short version
Think of an MSP as an IT department you rent. You pay a predictable monthly amount, usually per person, and the provider takes responsibility for keeping your technology working and secure.
The alternative most small businesses start with is break-fix: you ring someone when a computer stops working and pay for the hours. That works until the business depends on its systems every hour of the day.
What an MSP does day to day
| Area | What it means in practice |
|---|---|
| Helpdesk | Staff contact one place when something isn't working, and someone picks it up within an agreed time. |
| Monitoring and patching | Every device is watched and kept up to date, so problems are found before they stop someone working. |
| Accounts and access | New starters get what they need on day one. Leavers lose access the day they go. |
| Security | Multi-factor authentication, antivirus or threat detection, email filtering and staff training. |
| Backup and recovery | A separate copy of your data, and proof that it can be restored. |
| Microsoft 365 or Google Workspace | Mailboxes, shared files, licences and permissions kept in order. |
| Buying and renewals | Hardware and software sourced, and warranties, domains and subscriptions renewed on time. |
| Advice and reporting | A regular report on what happened, and a plan for what to budget for next. |
Not every provider includes all eight in the base price. Our guide to managed IT pricing models covers what to look for.
What it usually doesn't include
- The hardware and licences themselves. The provider manages them. You still buy them.
- Projects. An office move, a new server or a migration is normally quoted separately.
- Your industry software. An MSP will work with the vendor of your practice, accounting or job management system, but the vendor supports the product.
MSP, break-fix or in-house?
| Aspect | Break-fix | Managed provider | In-house hire |
|---|---|---|---|
| Cost shape | Unpredictable, by the hour | Flat monthly fee | A salary, plus tools and training |
| Prevention | None | Built in | Depends on the person's time |
| Cover for leave and illness | Depends who answers | A team | One person |
| Breadth of skills | One generalist | Several specialists | One generalist |
| Knows your business | A little | Well, if documented | Very well |
These aren't exclusive. Plenty of businesses with their own IT person use a managed provider alongside them for security, after-hours cover or specialist work.
Signs you have outgrown ad hoc IT
- IT is somebody's second job, and their first job is suffering.
- Nobody can say when the backups were last tested.
- People who left months ago still have working logins.
- A client or an insurer has sent a security questionnaire you couldn't answer.
- Computers get updated when someone remembers.
- You have passed about twenty people and the informal approach has stopped scaling.
Any one of these is manageable. Three or four together usually means the cost of not having proper IT is already higher than the cost of having it.
How to choose one
Ask for prices, response targets and exit terms in writing, and find out who will have access to your systems and where they are. We have set out the full list in How to choose a managed IT provider: 12 questions to ask before you sign.
Where Lumetra fits
We are a Melbourne-based managed IT provider for Australian businesses of roughly 20 to 100 people. Plans are priced per user from $79 a month, support is delivered remotely during Australian business hours, and response targets are written into the contract.
If you have no real IT in place yet, start with a fixed-price setup package rather than a monthly plan.
This guide is general information for Australian businesses, correct to the best of our knowledge when it was last reviewed. It is not legal, financial or security advice for your specific situation.