However, as time progressed computer manufacturing grew to large scale, leaving the small IT dealer to focus less on manufacturing and more on break/fix. This system was time consuming, labor intensive, costly and reactive. It did not allow the technician room to grow their business or take on new clients without massive investments in labor and infrastructure.
However, managed IT services do not necessarily make the enterprise IT professional obsolete; for the end user, an IT professional can act as an endpoint liaison that manages the relationship, provides feedback and analyzes the reports provided by the MSP. Because the majority of routine work is being completed by the MSP, the IT professional is capable of greater efficiency and has the flexibility to tackle larger, more complex projects they would otherwise not have the time or capacity to take on.
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The evolution of MSP started in the 1990s with the emergence of application service providers (ASPs) who helped pave the way for remote support for IT infrastructure. From the initial focus of remote monitoring and management of servers and networks, the scope of an MSP's services expanded to include mobile device management, managed security, remote firewall administration and security-as-a-service, and managed print services. Around 2005, Karl W. Palachuk, Amy Luby (Founder of Managed Service Provider Services Network acquired by High Street Technology Ventures), and Erick Simpson (Managed Services Provider University) were the first advocates and the pioneers of the managed services business model.
In House—the process where an organization hires its own IT service providers and pays their salary, benefits, and further training, as well as the infrastructure they oversee. This is typically an extremely costly endeavor, and often businesses that try to procure in-house IT lack the capabilities to fully service their system as well as an inability to grow.