What It Is
A Managed Service Provider (MSP) is a company that delivers ongoing services like IT management, cloud solutions, cybersecurity, and technical support to other businesses. In B2B partnerships, MSPs often act as channel partners by offering, integrating, and managing technology solutions alongside their own services. Strong MSP partnerships can help vendors expand faster by tapping into an existing client base and trusted advisor relationships.
When to Partner with MSPs
Partner with MSPs when your product requires ongoing management, monitoring, or support that customers don't want to handle internally. MSP partnerships are valuable when targeting SMB and mid-market companies that outsource IT functions, when your solution needs integration with broader technology stacks, or when implementation complexity creates barriers to direct sales. MSPs work best for infrastructure products, security solutions, cloud platforms, and business software requiring regular maintenance. Use MSP channels when entering markets where buyers trust local service providers more than direct vendor relationships.
How It Works
MSPs join partner programs and get trained on your product's technical capabilities, pricing, and support processes. They integrate your solution into their service offerings, bundling it with managed services they provide to clients. MSPs handle customer implementation, ongoing support, billing, and relationship management. Revenue models include MSPs purchasing licenses at wholesale prices and reselling with service markup, earning recurring commissions on subscriptions they manage, or receiving referral fees for customer introductions. Successful MSP programs provide technical certification, tier-based incentives, dedicated partner support, and co-selling assistance for larger opportunities.
Benefits for Partner Programs
MSP partnerships create recurring revenue streams as MSPs manage long-term customer relationships and renewals. They reduce your support burden because MSPs handle day-to-day customer issues and technical management. MSPs accelerate market penetration by bundling your product into established service packages their clients already purchase. In partner ecosystems, MSPs provide implementation expertise that makes complex solutions accessible to smaller customers. For B2B partner programs, MSPs drive sticky customer relationships because switching costs include both your product and the MSP's managed services. MSP channels typically generate lower CAC than direct sales because MSPs leverage existing client trust and relationships.
MSP vs System Integrator
MSPs provide ongoing managed services including monitoring, maintenance, and support for technology solutions they deliver. System integrators focus on implementation projects, connecting different technologies into cohesive systems without ongoing management. MSPs generate recurring revenue through service subscriptions. System integrators generate project-based revenue through implementation fees. MSPs maintain long-term customer relationships and handle day-to-day operations. System integrators complete projects then transition customers to internal teams or MSPs. In partner programs, MSPs drive subscription renewals and customer lifetime value. System integrators drive initial deployments and large project deals. Many partner ecosystems include both to cover full customer lifecycle from implementation through ongoing management.
