AWS Partner Network

The AWS Partner Network (APN) is a group of cloud

software and service vendors that have earned
endorsement from Amazon Web Services after meeting
several criteria. AWS divides partners into two groups:

1. APN Consulting Partners

2. APN Technology Partners.

APN Consulting Partners: An APN Consulting Partner

helps an AWS customer implement and manage an AWS
cloud deployment. These types of partners include system
integrators, managed services providers, and other
consultancies and agencies.

System Integrators:A systems integrator is an individual or business that builds computing systems for
clients by combining hardware, software, networking and storage products from multiple vendors. Using a
systems integrator, a company can align cheaper, preconfigured components and commercial off-the-shelf
software to meet key business goals, as opposed to more expensive, customized implementations that may
require original programming or manufacturing unique components.

Hiring a systems integrator to combine various subsystems into an integrated offering can also simplify
contracting and vendor management for the customer, who would otherwise need to purchase each
subsystem separately and work with multiple vendors. Systems integration is, thus, both a procurement
method and a technical activity.

What does a systems integrator do?

The task of systems integration often begins with a client meeting, or a series of meetings, in which the
systems integrator assesses the client's business needs and defines the technical requirements for an IT
system that meets those needs. The resulting integration plan sets the foundation for the integration process.
That process may involve designing or building a customized architecture or application and integrating it
with new or existing hardware, packaged or custom software, and networking infrastructure.

With the rise of cloud computing, the systems integrator may also play a role in integrating on-premises IT
systems with cloud-based applications or computing infrastructure.

 Managed Service Provider: A managed service provider (MSP) is a third-party company that remotely
manages a customer's information technology (IT) infrastructure and end-user systems. Small and medium-
sized businesses (SMBs), nonprofits and government agencies hire MSPs to perform a defined set of day-
to-day management services. These services may include network and infrastructure management, security
and monitoring.
MSPs often handle management services on a daily basis so customer organizations can focus on
improving their services without worrying about extended system downtimes or service interruptions.

While some MSPs may specialize in specific segments of IT, such as data storage, others focus on specific
vertical markets, such as legal, financial services, healthcare or manufacturing. Managed security service
providers, for instance, offer specialized types of services, such as remote firewall administration and other
security-as-a-service offerings. Managed print service providers maintain printers and supply consumables.
Often, MSPs perform their tasks remotely over the internet.

This image shows six benefits MSPs provide to an IT environment.

The evolution of MSPs began in the 1990s with the emergence of application service providers (ASPs),
which offered a level of service for remote application hosting. ASPs helped pave the way for cloud
computing and companies that would provide remote support for customers' IT infrastructure. MSPs initially
focused on the remote monitoring and management (RMM) of servers and networks. Over time, they have
expanded the scope of their services as a way to differentiate themselves from other providers.

Today, the terms cloud service provider and managed service provider are sometimes used synonymously
when the provider's service is supported by a service-level agreement (SLA) and is delivered over the
internet.

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What are MSPs used for?
Hiring a managed service provider can help an organization improve its operations.

SMBs are typical MSP customers. Many smaller companies have limited in-house IT capabilities, so they
may view an MSP's service offering as a way to obtain IT expertise. But larger enterprises may also contract
with MSPs. For example, government agencies facing budget pressures and hiring limitations may contract
with an MSP to supplement their in-house IT staff.

MSPs handle the complex, consuming or repetitive work involved in the management of IT infrastructure or
end-user systems. MSPs typically do the following:

• handle the management of IT infrastructure;

• offer technical support to staff;

• add cybersecurity software to IT;

• manage user access accounts;

• handle contract management;

• offer compliance and risk management; and

• provide payroll services.

How do MSPs work?

When a managed service provider is requested to meet the business objectives of an organization, it is often
expected to fill in some gap or role in an IT system or staff. Communication between the MSP and the
organization typically begins with an assessment that determines the organization's current environment.
This assessment may point out potential room for improvement and how to properly support business goals.

There is not one specific setup for every organization, so an MSP may provide many different service
options. Two examples of MSP offerings are technical support fix services and subscription services.

MSP technical support fix services focus on remotely fixing or sending technicians to a business's location to
resolve any issues. MSPs that provide this option charge the company for the time spent troubleshooting
and for any parts used to repair the problem.

MSPs that offer a subscription service model work on the quality of service of an organization's network and
usually bill customers monthly. If an issue arises, the MSP will fix the problem as part of the agreement
between the organization and the MSP. Payment through the subscription model is based on defined rates
per computer or equipment.

Maintenance, security, monitoring, reporting and other services are defined using an SLA that documents
what the organization can expect from the MSP. Response times, performance and security specifications
are also included in the service agreement.

MSPs may deliver their own native services, other providers' services or an integrated mix of the two. Pure-
play MSPs specifically focus on one vendor or technology and more commonly offer their own native
services.

MSPs also focus on deploying specialist software platforms that automatically manage functions. These
platforms consist of RMM tools and professional services automation (PSA) applications:

 • RMM software enables off-site technicians to maintain IT systems, such as networks, servers,
desktops and mobile devices. These tools also enable MSPs to apply patches and other system
updates.

• PSA tools enable an MSP to manage an organization's projects, billing, assets and inventory.

A managed service provider often provides its service offering under an SLA -- a contractual arrangement
between the MSP and its customer. The SLA spells out the performance and quality metrics that govern the
relationship. Organizations need to be precise when agreeing on the commitments they make in SLA
contracts.

An SLA may be linked to an MSP's pricing formula. For example, an MSP may offer a range of SLAs to
customers, with the customer paying a higher fee for higher levels of service in a tiered pricing structure.

What are the types of MSPs?

The types of managed service providers can differ depending on the criteria chosen to categorize them. For
example, if a business chooses to organize MSPs by the size of their target customers and how much
responsibility they take on, MSPs can be organized in the following way:

• Pure-play MSPs. These tend to be smaller providers that focus on monitoring networks and
application performance. They offer their own native services that focus mainly on reporting and
alerts.

• Staffing legacy MSPs. These MSPs generally target midlevel organizations and Fortune 500
companies and often offer a wide range of services, including monitoring, reporting, and software
installation and upgrades.

• High-level MSPs. These consist of small and large providers that enable their clients to outsource
as much of their IT processes as needed. Typically, high-level MSPs offer a wide range of services.

MSPs can also be categorized by the type of services they offer:

• Monitoring. These MSPs offer real-time monitoring software for different applications, network
devices, servers or websites.

• Remote support. These MSPs offer cloud-based software, support remote devices and remotely
troubleshoot technical issues.

• Proactive support. These MSPs perform preventative maintenance to stay ahead of any device or
network issues that could arise.

• Centralized management. These MSPs provide a management console for complex networks,
remote monitoring, patch management and security software.

• Scheduled maintenance. These MSPs offer organizations regularly scheduled network

maintenance.

• Simplified billing. These MSPs handle invoicing, payments and budgeting via a billing management
system.

What are the benefits of managed service providers?

Benefits of managed service providers include the following:

• Help an organization fill staff shortages. If an organization lacks workers, it can outsource some
of its tasks to the MSP.

• Provide expertise. Hiring a reputable MSP provides an organization with access to expert
resources.

 • Provide business continuity. An SLA documents the MSP's obligations to the business to prepare
for or recover from a disaster.

• Provide constant network monitoring. Many MSPs offer 24/7 monitoring services using network
monitoring tools that offer system visibility and cloud management.

• Improve security. Some MSPs provide security software and awareness training.

• Improve cost efficiency. If numerous unplanned repairs are needed, paying a fixed monthly charge
can be more cost-effective than paying hourly. While the MSP handles the day-to-day management
services, customer organizations can focus on improving their services.

This graphic shows the results of Apps Associates' recent survey of IT decision-makers regarding MSPs.

What are the challenges of managed service providers?

Despite their advantages, managed service providers may also come with challenges, for example:

• Not all MSPs offer security measures. Many MSPs do not have a major focus on cybersecurity.

• Dependent on third-party organizations. Organizations that depend on an MSP to handle daily

tasks may form a reliance on them. If the MSP fails to follow through on the SLA, the organization
could experience system downtime.

• Waiting on a response. It may take time for an MSP to respond to an issue.

• Potential upselling. An MSP may try and upsell an organization on technology or services they do
not need.

• Inaccessible information. An organization's information may not be freely accessible if the MSP is
using a proprietary tool to manage and monitor its infrastructure.

What is the pricing model for managed service providers?

Managed service providers typically use one of the following pricing models:

• Per-device pricing. The MSP charges the customer a flat fee for each device it manages.

• Per-user pricing. The MSP charges a flat fee for each user, accommodating users who use multiple
devices.

• All-inclusive pricing. Also referred to as the all-you-can-eat model, the MSP charges a flat fee for
its IT infrastructure support and management services.

 • Tiered pricing. Organizations can choose the bundle of services that best fits their needs. This is
typically a favored pricing model for MSPs.

• Monitoring-only pricing. MSPs only offer monitoring and alerting services for an organization's IT
infrastructure.

Six different pricing models for MSP services

In each of these pricing approaches, the customer pays the flat fee on a regularly scheduled basis, often
monthly. Such pricing methods let MSPs sell services under a subscription model. This approach provides
the MSP with a monthly recurring revenue (MRR) stream, in contrast to IT projects that tend to be one-time
transactions.

MRR differs from other business models, as providers pursuing the break/fix model, for example, usually
price their services on a time and materials basis. They generally bill an hourly rate for repairing a customer's
IT equipment and charge for parts or replacement gear.