An MSP (Managed Service Provider) subscription involves a temporary assignment of devices and their associated subscriptions to customers for the duration of a managed service contract.
Understanding MSP Subscriptions
Here's a breakdown of what an MSP subscription entails:
- Temporary Assignment: The MSP does not sell the devices or subscriptions to the customer permanently. Instead, they are provided to the customer for the length of their service contract.
- Contract-Based: The availability of these devices and subscriptions is tied to a specific managed service contract. When the contract ends, the devices and subscriptions revert back to the MSP.
- Resource Pooling: The MSP maintains a pool of devices and subscriptions. After a contract ends, the resources go back to this pool, ready to be assigned to another customer.
How it Works
The process typically follows these steps:
- MSP Purchase: The MSP purchases devices and necessary software subscriptions.
- Service Agreement: The MSP enters a contract with a client, defining the services, devices, and subscriptions to be used.
- Device & Subscription Assignment: During the contract period, the devices and subscriptions are assigned to the customer, who uses them under the terms of the agreement.
- Contract Completion: Upon completion of the contract, the devices and subscriptions are returned to the MSP’s resource pool.
- Reassignment: The MSP can then reassign the same devices and subscriptions to a different client.
Key Characteristics of MSP Subscriptions
| Characteristic | Description |
|---|---|
| Ownership | The MSP maintains ownership of the devices and subscriptions. |
| Duration | Linked directly to the length of the managed service contract. |
| Reusability | Resources are pooled and can be reassigned to different clients. |
| Flexibility | Provides flexibility for both the MSP and clients. |
Example
Imagine a small business contracts with an MSP for network security services. The MSP provides them with firewalls and the associated security software subscriptions.
- During the contract, the small business benefits from the services and equipment.
- At the end of the contract, the firewalls and software subscriptions go back to the MSP’s resource pool.
- The MSP can then reassign these resources to another business with a similar contract, thus ensuring efficient use of resources.
This process is detailed in the provided reference, which clearly states that "the MSP temporarily assigns devices and their corresponding subscriptions to customers for the duration of the managed service contract. When the contract ends, the devices and the subscriptions are returned back to the common pool of resources of the MSP and can be reassigned to another customer."
