In simple terms, a managed service provider is a contractor; usually a third party who involve themselves in delivering applications and equipment that are network-based to residences and enterprises. This means that they can either play the hosting role or be an access provider, offering services that are related to IT. These services may include messaging, IP telephony, management of call centers, management of firewalls, virtual private networks and reporting network servers. The services listed above can be carried outside the internal network of a company. When this is the case, emphasis is given on certification and integration of the contents and applications of internet security.

In the modern world where technology is fully advanced, managed service providers play a crucial role by acting as agents of outsourcing for companies. This is especially the case with service providers that do not have enough resources to upgrade and maintain their computer networks on a constant and regular basis. Service providers such as ISPs have greatly benefited in that through outsourcing, they are able to maintain fast networks.

Managed service providers play a crucial role in technology. Apart from the services dealing with basic communications, the managed service providers liase with frame relay service and wide area networks (WAN). When this is the case, managed service providers get the ability to manage a number of activities that are associated with networks of enterprises such as cloud storage. This is a very important aspect in the modern day technology.

Currently, the managed service providers can also be known as management service providers. This is contrary to the past whereby management service providers was a term used in describing the services related to infrastructure that were always delivered on upon subscription. After cloud computing was introduced, management service providers and management service providers became one and similar thing. For more information on managed service providers, one is encouraged to go online to explore the area