Are you wondering if you should get a managed IT service provider (MSP) when you already have reliable software vendors?
As an MSP, we get asked this question all the time. Clients want to know if they really need managed IT or if they’re being upsold. And here at Intelligent Technical Solutions (ITS), we believe you deserve to know what you’re really getting – whether you decide to partner with us or not.
So, in this article, we’ll take a closer look at:
- What are software vendors, their advantages, and their disadvantages?
- What are managed IT service providers, their advantages, and their disadvantages?
And most importantly: which one is better for you?
By the end of this article, you’ll be able to make an informed decision to help your business thrive.
What are Software Vendors?
Software vendors are companies that provide specific solutions tailored to business needs. These solutions can range from accounting software to customer relationship management (CRM) systems.
Vendors typically offer support for their products, focusing on ensuring that their software works as intended and resolving any issues related to their software.
Advantages of Software Vendors
If you choose to rely on software vendors, what do you get?
1. Direct Access to Product Updates and Innovations
Vendors are usually the first to develop and release updates, patches, and new features for their products.
Clients of software vendors often access these updates and innovations as soon as they are available, sometimes even as part of beta testing programs, ensuring they are always at the cutting edge of what the software can offer.
2. Tailored Support for Specific Applications
When dealing with complex or proprietary software, the vendor’s support team is often better equipped to handle issues specific to that software, as they are intimately familiar with its architecture and functionality.
3. Cost Efficiency for Specific Solutions
If a business only requires support for a specific software application, dealing directly with the vendor is less expensive than hiring an MSP. The vendor’s support is typically included in the cost of the software, whereas an MSP is a different service which requires more investment.
Limitations of Software Vendors
Software vendors, when compared to MSPs, have several limitations.
1. Limited Scope of Support
Vendors only support their specific software. Their goals and methods are completely different from managed IT providers.
If an issue arises outside their product’s functionality, such as network problems or integration with other systems, you’re often left to resolve it on your own or hire another expert.
2. Reactive Approach
Most vendors operate on a reactive support model, meaning they only address issues after they occur. This leads to prolonged downtime, as problems are often only fixed once they’re already affecting your operations.
3. No Holistic IT Management
Vendors focus on their software, not your entire IT ecosystem. This narrow focus means they might miss larger issues within your infrastructure. It eventually leads to unanticipated problems and costs.
What are Managed IT Service Providers (MSPs)?
MSPs, meanwhile, have completely different goals and services than software vendors. Their main offer is managed IT - a service where you outsource your entire IT department.
The goal of managed IT is to lessen the mental load of handling your IT while providing immense value. They remove all the pressure of hiring, training, managing, and paying an entire department. Instead, the MSP will oversee everything while involving you in decision-making.
Depending on the MSP’s capabilities, they may offer other services like co-managed IT, VoIP services, data analytics, compliance services, or business internet.
Advantages of Managed IT Service Providers (MSPs)
Why choose an MSP?
1. Comprehensive IT Support
Unlike vendors, MSPs manage your entire IT infrastructure, from hardware to software. This holistic approach means you have a single point of contact for all IT-related issues, simplifying management and reducing the risk of overlooked problems.
MSPs prioritize security, implementing measures to protect your data and ensure compliance with industry regulations. This level of protection is often beyond the scope of individual software vendors.
2. Proactive Monitoring and Maintenance
MSPs continuously monitor your entire IT environment, identifying and addressing issues before they cause disruptions. Their proactive approach reduces downtime and keeps your systems running smoothly.
3. Strategic IT Planning
MSPs work with you to develop long-term IT strategies that align with your business goals. This planning includes software selection, integration, and updates, ensuring that your IT systems evolve with your business.
4. Overall Value
While hiring an MSP might seem like a higher upfront cost, it often saves money in the long run by reducing downtime, preventing costly IT disasters, and providing a predictable IT budget.
Limitations of Managed IT Service Providers
On the other hand, what are the downsides of MSPs?
1. Less Specialized Expertise in Specific Software
MSPs often manage a wide range of software solutions across different platforms. This breadth may sometimes result in a lack of deep, specialized knowledge about specific applications that a software vendor would have.
As a result, troubleshooting complex, specialized software issues may take longer or require external vendor support.
2. Lack of control
With managed IT services, the company hands over control of their IT infrastructure to a third-party provider. Good MSPs will coordinate large IT decisions and updates with you, but if you prefer airtight control over IT this may not be the best service for you.
3. Dependence on a third party
If you outsource your IT service, you become dependent on the third-party provider for critical IT functions. It’ll create a vulnerability if the provider experiences downtime or security breaches. It may take more effort to transition back into in-house IT down the line.
4. Cost
While managed IT services provide long-term value, there are upfront costs associated with outsourcing IT services - especially if you’re coming from a break-fix IT model. Additionally, there may be other not immediately apparent costs, such as onboarding fees.
Which is Better: A Software Vendor or an MSP?
Unfortunately, there’s no one-size-fits-all answer. The decision between software vendors and an MSP boils down to the level of support and expertise you need.
Software vendors are a good fit for companies with specific, isolated IT requirements.
“If you're just looking for support on specific applications [like QuickBooks, Salesforce or 3CX], then you don't need an MSP. You already have support for those applications,” Mike Rhea, ITS’ Chief Revenue Officer, said.
Instead, MSPs can take charge of coordinating with these vendors. Instead of you needing to call up each vendor and use your time to resolve issues, an MSP will handle this process. Amongst other perks.
“There's value to an MSP aside from just support,” Rhea pointed out.
Are you looking for someone to handle your entire IT environment and cybersecurity? Or strategic IT guidance? These are things your MSP can do for you.
Want more tools to evaluate your IT needs?
Your IT infrastructure should support, instead of hindering, your goals. And this starts with understanding exactly what you need.
At ITS, we understand that your IT requirements are unique, and we’re here to provide the comprehensive support you need to discover these needs. Use our IT Needs Analyzer to get a free report detailing the gaps in your IT infrastructure.
If you want more information about the services MSPs provide, check out the following resources:
- Managed-IT Service Provider vs. Break-Fix and In-House IT
- Everything You Need to Know About Managed IT
- How Much Does Managed IT Cost? (5 Price Factors) [Updated]
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