The MSP Model and How It Saves You Money

Why should you go with a Managed Service Provider (MSP) for your IT needs versus a “break-fix” model or having no IT? The graph below shows two very different examples. The top graph is what most small to medium businesses experience in the case of a server failure. A server failure can be catastrophic to the productivity of any business.

Let’s pretend that server that fails is an email server. This server goes down at 6:45 AM, from that point zero emails, will be sent, and zero emails will be received. A vast majority of companies are completely dependent on their emails for not only internal communication, but sales, and external communication as well.

In this first model, the server is down for just under 10 hours. Imagine a business with no access to their emails for 10 hours. For most businesses this would mean they were essentially closed for the day, making 0 money and still having to pay out their payroll costs for that day.

An entire day of business is lost because of this.  As we go to the next graph, you will see the MSP model. It is the same situation; a server fails at 6:45 AM, except the MSP, is aware of it immediately as compared to the original graph they are not made aware until 8:52 am. Incidentally in the MSP model that is the same time the issue is resolved. With the MSP model, we have gone from 10 hours of downtime to just over 2 hours.

Depending on business hours, this issue may even be fixed before the business officially opens for the day. Take note of the green areas on the two graphs. The difference is your cost savings with an MSP model. On the one hand, we preserve nearly the entire days’ worth of business with low labor cost as the issue is fixed remotely and quickly. With the break-fix model, your labor costs are significantly higher as you would most likely be paying an emergency rate, which is typically 15%-30% more per hour than your normal rate. With the additional cost to resolution and such an extended amount of downtime, how can a small business afford this?



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