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Worth trillions of dollars, the technology industry is one of the top revenue-generating sectors in the world. Given the rapid pace of technological advancement and digital transformation, tech services are becoming increasingly crucial for not only large enterprises but also small- to medium-sized businesses (SMBs) and individuals.

As tech continues to be integrated into everyday operations, large enterprises typically have the resources to employ massive IT teams to handle all their technology needs. SMBS, however, are not always in the same boat, instead outsourcing their tech needs to third-party companies.

When a third-party company manages and delivers IT services, these are called “managed services”, and leveraging such a model to oversee IT can help businesses thrive. A company that delivers managed services is generally referred to as a managed service provider (MSP), and the advantages of starting an MSP business are also large in number.

Defining managed services

Without a dedicated IT team to handle their technology-related inquiries, smaller companies will often outsource their IT needs to third-party companies instead. These third-party companies can handle several technical services, including networking, cybersecurity, email services, website hosting, and software licenses.

MSPs can be experts in just one field, such as productivity tools like Microsoft 365 and Google Workspace. However, an MSP may also offer professional expertise in various fields, including security, infrastructure, and communications tools in addition to productivity. Whether they’re experts in a single subject or multiple realms, an MSP can become an extremely valuable resource for an SMB.

How MSPs help businesses

From lowering costs to helping guide business choices of tech tools and services, an MSP can aid businesses at any scale. Let’s look at a few of the ways that MSPs help businesses thrive in the context of the increasingly digital world.

Cost cutting

Hiring an internal IT team can easily become costly for SMBs. By outsourcing these needs to an MSP, the business can benefit from professional technical expertise without bearing the high costs of maintaining a full team.


By hiring an external third party to manage IT services, businesses can trust that their services will be more reliable. While an in-house IT expert or team of experts will often have to juggle many tasks simultaneously, the dedicated MSP can focus on providing your business with flawless delivery of each particular service.

That includes tracking updates, monitoring security, installing patches and minimizing outages. MSPs work under specific contracts, so expectations of delivery are crystal clear, and managing each task is easier.

Managing tech tools and services

The right MSP can help a business manage its technological tools and services, ensuring that it’s using the most effective solutions for its needs. The MSP can also confirm that the business has the most up-to-date, cutting-edge tools available. With their technical expertise, MSPs are available to help businesses restructure their internal file-keeping and digital communications platforms.

Cloud computing

MSPs can also help businesses take advantage of cloud computing by setting up effective, secure cloud computing platforms with reliable transmission control protocols, or TCPs. TCP is a widely-used protocol for ensuring that all transmitted data arrives at its intended recipient without interference or errors.

Cloud computing generally refers to any interaction that provides services hosted on the internet. These hosted online services typically fall into three main varieties of cloud computing: platform as a service (PaaS), infrastructure as a service (IaaS) and software as a service (SaaS).

Unlike cloud services, in which businesses can purchase cloud computing platforms on demand, an MSP can implement and monitor new cloud computing platforms to ensure that all interactions and transactions (between businesses and vendors, as well as businesses and clients or customers) are delivered smoothly.

Advantages of starting an MSP business

By starting your own MSP business, you are creating recurring revenue streams. Opportunities for MSPs continue to grow as the technology industry increases its reach, with more and more companies relying on tech solutions for their remote business dealings.

Research has shown that 62% of IT MSPs expect revenue growth from new business in 2023, while the MSP industry is on track to net over $730 billion by 2030, growing from $267 billion in 2022.

The technology industry is always growing and changing. To meet the increased demands for tech services and expertise prompted by the ongoing digital transformation across sectors, we need more MSPs to fill knowledge gaps. MSPs can adapt to tackle new verticals, cultivating more revenue streams.

As an MSP, you can develop “stickiness” with your client base and become a necessary element for them. This means offering your clients a range of services that can scale up or down according to their needs. By making your expertise and skills invaluable for your client base, you will be making it difficult for them to stop engaging with your offerings, which puts you in a strong negotiating position as far as sales are concerned.

Thinking of starting a managed services business? An expert partner can help

As we have seen, the demand for MSPs is booming as every sector of business continues to shift towards more reliance on digital interactions and platforms, as well as cloud-based computing.

The skills gap in the current workforce means there is a huge need for skilled, reliable, efficient and cost-effective MSPs. Businesses are seeking out MSPs who can provide IT expertise, software and platform monitoring, digital tools management, security analyses and updates and ongoing tech service guidance at every level.

If you have the drive and skills to start your own MSP, you’ll need an expert partner to help you get going. Sherweb helps thousands of MSPs grow and diversify their business, guiding them through the ins and outs of creating a thriving MSP career.

Born in the cloud and dedicated to offering tailored support, Sherweb can help develop your business strategy, streamline your operations and reduce skills gaps. Check out our partner guide for more information or sign up for our partner program.

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Written by The Sherweb Team Collaborators @ Sherweb