Manage Service Provider
Managed services work differs from other business models in the IT solution provider and channel partner space. One key departure is recurring revenue. Solutions providers pursuing the break/fix model, for example, usually price their services on a time-and-materials basis, billing an hourly rate for repairing a customer's IT equipment and charging for parts or replacement gear. Companies performing IT project work, such as computer systems installation and integration, may charge a fixed price for products and services. Either way, those solutions providers generate revenue on a one-time basis from each project; an exception would be large projects with multiple milestones and associated payments. But, in general, the conventional solution provider business is mainly transactional. An MSP's recurring revenue stream, on the other hand, potentially provides a more stable and predictable base of business.
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