Computer viruses. Phishing messages. Spyware. Compromised passwords. These are just some of the biggest IT security threats facing small businesses this year. The best way to mitigate them is to move data and applications to a managed service provider.

That’s according to a new survey of more than 1,500 managed service providers (MSPs) – third-party companies that handle the day-to-day tasks and responsibilities of managing data and applications in the cloud. Managed service providers have experienced a growth spurt in recent years and have become a common replacement for on-premise computer systems.

According to a recent report, around 58% of enterprises use managed service providers to manage their cloud environments. Driven by small businesses looking to outsource their IT operations, the managed service provider industry is expected to grow from around $281 billion in 2024 to over $400 billion in the next five years.

Small businesses rely on these outsourced IT companies to secure their data, ensure their systems are accessible at all times, use the latest technologies, and be available as a point of contact in the event of an unforeseen business interruption.

Does your company use a managed service provider? If not—or even if you do—here’s how to take advantage of their capabilities.

Look for a well-known platform to host

In this cloud-based world, many business applications for accounting or customer relationship management are already hosted by the software provider. However, it is important to back up this data and then store this information, as well as documents, spreadsheets and other files, separately with a well-known managed service provider.

“We typically recommend that our clients host with an established company like Microsoft Azure or Amazon Web Services,” said Jeff Sumner, owner of Tech Guides, a computer support and services company based in Newtown Square. “If their needs are simpler and they don’t want to bear the cost, they can move all their data and files to services like Dropbox or Google Drive.”

Also consider hiring an IT consulting firm

Sometimes it’s helpful to have an outside, independent IT consultant who uses an MSP for data and applications but acts as the primary point of contact. Brian Pickell, who runs KPInterface, a Phoenixville-based company that provides IT managed services to organizations across the United States, said a good independent IT consultant can also help vet an MSP’s services and capabilities.

“A good consultant will have standardized questionnaires that they send out to vendors,” including checking whether the company complies with regulations from organizations such as the National Institute of Standards and Technology, he said.

Anthony Mongeluzo, whose Moorestown-based IT consulting and services firm PCS often provides consulting services to its clients, said they work with a managed service provider because some providers don’t offer day-to-day IT support, strategy and consulting.

“An IT consultant would and should serve as your CIO (chief information officer) and your IT team,” he said. “The consultant can work directly with the MSP to ensure your operations are running as intended and let the company focus on its core business and service offerings without worrying about its technology or security posture.”

Prioritize access

It doesn’t do much good to have a company host your data and applications if you and your employees can’t access them. Pickell said data accessibility should be a priority in your service level agreement.

“When there is downtime, productivity is lost and it costs time and money. However, a vetted professional hosting provider has the technology and systems to ensure that this rarely or never happens,” he said.

After all, a managed service provider may not be for everyone

There are some disadvantages to hosting your data and applications with an MSP. First, the monthly payments can be expensive.

Disruptions can also occur. If your MSP goes down, your business can be interrupted, and if an MSP is sold to another company, the level of service previously provided may change.

Because MSP service contracts are often complicated and heavily weighted in favor of the provider, it is important to have these contracts regularly reviewed by a lawyer and an IT consultant.

There may also be restrictions for organizations that work with the government or have other sensitive data, Mongeluzo said, but for most, using an MSP has more advantages than disadvantages.

“We’ve worked with organizations with up to 25,000 team members in one form or another, and most organizations today are primarily struggling with budget issues, high turnover and a shortage of workers,” he said. “MSPs help solve these problems and can provide the right resources when needed.”