When it comes to the documentation of the agreement to with an MSP, something written is always the best way to go. An agreement with an MSP should help illustrate and explain the relationship between you the receiver of the service and the MSP, the supplier. These has become an issues of concern since most start off with a Value added resellers agreement (VARs) which does not provide the details and aspects that an philadelphia managed IT service provider agreement provides.


Defining an MSP Agreement

It’s a well written agreement that provides a common understanding of the service to be performed by the MSP for the client. It’s a legal biding contract that lawyers or attorney review on behalf of the clients on both sides. Appreciating that certain loopholes that may exist in the contract may come to haunt you later should inform the review and synthesize of the MSP agreement.

Often defined as a Service Level agreement (SLA) between an MSP and their client. It pertains the responsibilities of both parties from the service expected to the payment plan and options.

Differentiating an SLA from a VAR

A value added reseller’s agreement is often the start point as clients evaluate the effectiveness of an MSP to provide services. But the nature of Managed services are long term in nature and VAR cannot effectively embark on helping defining the relationship between an MSP and the client. A VAR also occurs when there is a broker involved and hence he/she take some portion of the money offered affecting both sides.

Importance of a SLA

A Managed service agreement if well developed and established is full of good things that may not appeal to both sides in the beginning but help in the wrong run; from

  • Clear documentation of the manner in which service is provided by the MSP and how it’s delivered. The documentation is easy to understand for both parties with the right jargon and illustrations.
  • Protects both parties from legal actions that can be taken by one of the parties or an outsider.
  • Helps to engage and establish how to make the customer satisfied with the delivering of service by the MSP

Aspects of a MSP agreement

  • Documents the responsibilities and roles of parties of both sides.
  • Establishes the entire service agreement between the parties.
  • Protect both parties from legal action
  • Sets apposite expectation for both sides
  • Insure the profitability of the MSP by creating a framework that ensures they are always paid on time and provided enough space to take on other clients.
  • Establish the transition from a VRA to a SLA
  • Used to measure the performance of both sides
  • Establish fees and payment schedule for the fees
  • Also considers the termination of service clause.
  • Defines the environmental prerequisite for service provision.
  • Establish a baseline from which both sides can operate from

To issue an appropriate SLA between a client and their MSP there five extra points often forgotten but are overall important to the whole document;

  • Good SLA make for satisfied customers in the long term
  • Understanding lease of power from the client to the MSP.
  • Liabilities costs definition and demarcation
  • Conflict resolution mechanism
  • Complex as it may be, it should be simple to understand the terms of service provision.