An MSP (Managed Service Provider) is a partner that delivers ongoing IT services, monitoring, and management to customers under a recurring contract, often bundled with vendor products.
A Managed Service Provider delivers ongoing management of IT infrastructure, applications, or endpoints to end customers, usually under a monthly recurring contract. MSPs typically resell or embed vendor products as part of their managed service.
The MSP owns the customer relationship and SLA. They select vendor products that fit their service stack, embed them into their offering, and bill the customer a monthly fee that covers licensing, monitoring, and support.
MSPs generate recurring revenue for vendors at scale, especially in SMB and mid-market, and are often stickier than one-time resale channels.
A VAR sells and implements product one time. An MSP manages the environment on an ongoing basis under a recurring contract.
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