MSP vs. MSSP: the key differences

You know you need help. You need a partner to handle the tech stuff so you can focus on your core operations. But when you start looking, you run into a confusing alphabet soup of acronyms. We're here to clear up common MSP vs. MSSP confusion.

While both managed service providers (MSPs) and managed security service providers (MSSPs) are here to make your life easier, they play very different roles in your organization.

An MSP is your IT department's general practitioner, but with a twist: they're an external partner, not on your company's payroll. Instead of having an in-house team, you hire this independent firm to handle routine check-ups, fix what's broken, and keep your overall IT systems healthy.

An MSSP, on the other hand, is best understood as a highly specialized type of MSP. It’s not a completely different species; think of it as an MSP that went to cybersecurity grad school. “MSP” is the broad, umbrella term for an outsourced IT partner. An MSSP is an MSP that has chosen to focus its entire practice on security.

Understanding the key differences between them isn't just tech jargon; it's a critical business decision that could save you from a world of hurt down the road. Let’s clear up the confusion and figure out which one is right for you.

MSP vs. MSSP: understanding cybersecurity roles

Both often handle security, but their approach, depth, and primary mission are worlds apart. And the devil, as they say, is in those details.

The services, tools, and expertise they offer are also very different. The key differences between MSPs and MSSPs are crucial for making an informed choice. Let's put them side-by-side to get a clear view of the MSP vs. MSSP landscape.

Managed service provider (MSP)

So, what exactly is a managed service provider? In simple terms, a managed service provider (MSP) is an outsourced partner that remotely manages your company’s entire IT infrastructure. Instead of hiring a full-time, in-house IT team, you partner with an MSP to handle it for you.

They are the strategic partners you can often rely on to:

• Manage and optimize your cloud and on-premises IT infrastructure for peak performance and reliability.

• Implement and manage sophisticated systems for data backup and disaster recovery.

• Develop and execute a long-term technology roadmap.

An MSP's primary goal is availability and operational efficiency. They proactively monitor your systems to prevent problems before they disrupt client operations.

It's a strategic choice for many providers to operate under the “MSP” banner. It's a more flexible and comprehensive title, signifying that they can cover a broad range of services, often including the advanced security functions you'd expect from an MSSP.

While some MSPs may focus more on IT operations, many offer robust cybersecurity services. This often extends to sophisticated solutions like enterprise password management, advanced network security tools, and secure cloud configurations. For these MSPs, security isn't just a feature. It's an integral part of ensuring the health of the entire IT infrastructure they manage. 

Managed security service provider (MSSP)

A managed security service provider, or MSSP, is an outsourced partner whose world revolves around information security. 

A managed security service provider (MSSP) operates at a higher level of specialization. They build and run a dedicated security operations center (SOC) or leverage one through a partnership. Their focus is on deep network security, continuous threat hunting, and around-the-clock monitoring. They provide a team of highly skilled security experts whose sole job is to manage, analyze, and respond to cyber threats in real time.

MSSP services are designed to provide security measures against an ever-growing landscape of digital dangers. This includes:

• Advanced threat detection: Using sophisticated tools to spot malicious activity that would otherwise go unnoticed.

• Incident response: Having a plan and the expertise to act immediately when a breach occurs, minimizing damage.

They focus exclusively on protecting client networks and data from both common and sophisticated cyber threats. Their expertise in threat detection is a core part of their value.

Managed services: is it an MSP or an MSSP you need?

Choosing the right partner comes down to an honest assessment of your business's needs, resources, and risks. But here’s a crucial point: it's not usually a matter of hiring two separate companies. Most of the time, your MSP can also be your MSSP.

Many MSPs have a robust portfolio of cybersecurity services and function as an MSSP without using the niche label. The need to seek out a separate, specialized MSSP typically only arises when your security requirements become so advanced that they exceed what your current partner can support. For example, if you need a specific, high-level compliance certification or a 24/7 managed threat detection service that your MSP doesn't offer, then you might bring in a specialist. But for most businesses, the journey starts and ends with finding a capable MSP that offers the right mix of IT and security services.

1. Your budget and resources

Budget is a huge factor. An MSP is often more affordable because its scope is broader. An MSSP costs more because you're paying for a team of highly specialized, in-demand experts and their expensive, sophisticated security platforms.

When weighing the costs of MSPs and MSSPs, ask yourself: what's the potential cost of a data breach to my business? Suddenly, the price of an MSSP might seem like a bargain.

2. Your industry and compliance requirements

Are you in a heavily regulated industry like healthcare (HIPAA), finance (PCI DSS), or government contracting (CMMC)? If so, you're not just trying to avoid cybercriminals. You must legally meet stringent security standards. 

Both MSPs and MSSPs often specialize in these specific cybersecurity services. They understand the nuances of various cybersecurity frameworks and can provide the monitoring, reporting, and documentation needed to pass an audit. 

3. Your in-house expertise (or lack thereof)

Be honest about what your team can handle. Do you have someone on staff who knows how to interpret a SIEM alert or conduct a vulnerability assessment? If not, you need help. If your team is already stretched thin just keeping the IT systems running, they won't have the capacity to manage a dedicated security program.

This is a common reason businesses engage with MSPs and MSSPs: one partner frees them up from daily IT chores, while the other provides security expertise they completely lack.

4. Your risk tolerance

Every business has a different appetite for risk. A small local bakery and a fintech startup holding millions in customer funds have vastly different risk profiles. If your business stores or processes large amounts of sensitive data, such as customer information, financial records, or intellectual property, the consequences of a breach from ongoing cyber threats are catastrophic. In this case, investing in a dedicated managed security service provider is not a luxury, but a necessity.

The debate between MSPs and MSSPs ultimately boils down to what you're trying to achieve. Are you looking for a partner to maintain your tech, or a guardian to protect it?

How NordPass empowers MSPs and MSSPs

Whether you're an MSP looking to strengthen your security offerings or a full-fledged MSSP, managing credentials is a universal challenge. For both MSPs and MSSPs, the question remains: how do you securely handle passwords for dozens of clients without creating a massive security risk or an administrative nightmare?

This is where NordPass comes in. It’s a powerful tool designed to help both security service providers and IT managers dramatically improve their clients' security posture and streamline their own client operations.

Here's how NordPass empowers providers:

• Centralized, multi-tenant management: The biggest headache for any provider is juggling multiple clients. The NordPass multi-tenant MSP Admin Panel provides the solution. From one centralized dashboard, you get a complete overview of every client organization. This allows you to easily manage access and controls while ensuring each client's data remains completely segregated and secure.

• Enforce robust security measures: MSPs can’t just hope their clients use strong passwords. With NordPass, you can enforce it. Mandate Master Password complexity, require multi-factor authentication (MFA), and monitor security scores across all client organizations. This allows you to implement and prove the value of robust security measures.

• Streamline onboarding and offboarding: When an employee joins or leaves a client’s company, managing their access can be messy. NordPass simplifies this by allowing you to securely share credentials with new hires and instantly revoke access for departing employees, closing a common security gap.

• Enhance your security stack: For a managed service provider (MSP) looking to offer more advanced cybersecurity services, a business password manager is a foundational first step. It’s an easy-to-deploy, high-impact service that provides immediate value. For a managed security service provider (MSSP), NordPass complements your existing stack by securing the single most common attack vector: compromised credentials. It's an essential tool for all modern MSPs and MSSPs.

When you slide NordPass into your MSP toolkit, things just click. With step-by-step guides, a dedicated account manager, and a 14‑day free trial for your clients, NordPass practically holds your hand while you onboard. You set the rules: password policies, secure sharing with time limits, autofill to make life easier, and breach alerts that ping you. All under zero-knowledge encryption and XChaCha20 muscle, so neither you nor anyone else can peek at the data.

Ready to see how you can elevate your service offerings? Learn more about the NordPass solution for MSPs or explore the features of our business password manager.