MSP, ITSP, VAR, Systemhaus, IT consultant: what’s the difference? 

The IT world can be confusing. There are numerous TLAs (Three-Letter Acronyms) and technical terms that can make it challenging to know how to refer to your role, business, or industry. 

This quick guide will steer you through the maze of MSP definitions, including MSSP, ITSP, VAR, system house, IT consultant, and a whole lot more. 

We hope to show that the MSP GLOBAL community includes all sorts of IT professionals, who share similar challenges, opportunities, and a need for community. 

Still unsure if you’re in the right place? If you like the sound of server throwing, you’re probably one of us.

What is an MSP?

Managed Service Providers (MSPs) are the unsung heroes keeping modern digital infrastructure running smoothly.  

MSPs deliver ongoing management, support, and administration of IT services—including network, application, infrastructure, and security. They may supplement or replace in-house resources, and provide services on the customer’s premises, from their own data centre or via a third-party hosting environment. 

What’s a pure-play MSP?

Some MSPs specialize in a single vendor or technology—these are known as pure-play MSPs. But many offer a broader mix of services sourced from multiple providers. 

How has the term MSP evolved?

Originally used to describe infrastructure- or device-centric support, the term MSP now broadly refers to any provider offering continuous, proactive management and maintenance of IT systems.  

So, maybe you are an MSP after all.

Am I a small, medium or large MSP?

Small MSPs

You guys are core to our MSP GLOBAL community, generally have a sub-USD $5 million ARR (annual recurring revenue) and teams of 1 to 25.

You’re most likely “Tactical Tech Founders”—perhaps you’re an owner, CEO, Managing Director or Lead Technician who transitioned from a hands-on technical role to launch your own firm, growing your client base through referrals and a do-it-yourself ethos.

Your goals might be securing steady MRR, broadening your customer pipeline beyond word-of-mouth, assembling a reliable team, and optimizing service pricing and packages.

Medium MSPs

Medium-sized MSPs in our community generate ARR in the region of $5–20 million and have teams of 25–100, striking a balance between agile growth and mature revenue forecasting alongside ISVs.

If you’re a COO, CTO, Sales Director or Service Delivery Manager, you might have moved from a small MSP and are all about process optimisation.

Your focus is building repeatable, scalable delivery and sales systems, security and compliance, and landing bigger, vertical-focused deals with higher ACVs (annual contract values).

Large MSPs

We think of large MSPs as those with an ARR over $20 million and 100 employees – but of course there are some huge players out there.

Leaders may have come from an enterprise or consultancy background and be driving growth through M&A, partnerships, and global expansion.

You’re focused on identifying acquisition targets, entering new verticals and markets, modernizing services with AI and automation, reducing cybersecurity liability, and nurturing talent within your teams.

You’re likely dealing with pain points like the cultural, technical, and operational complexities of integrating acquisitions, balancing innovation with process, and scaling multi-region support and compliance.

Whatever your size, you’re part of the family!

Who makes up the MSP ecosystem? 

Managed Service Provider is a catch-all term. There are plenty of specialist businesses that operate in and around the MSP space. Here are just a few: 

• Managed Security Service Provider (MSSP): Focused on cybersecurity, sometimes alongside other service offerings. 
• Cybersecurity Provider: Often the same as an MSSP, focused on securing IT systems and protecting against cyber threats.
• IT Services Provider (ITSP): Offer a range of IT support services, including managed services and ad-hoc assistance.  
• Value-Added Reseller (VAR): Sell IT products and services, bundled with support and integration.  
• Cloud Service Provider (CSP): Specialize in delivering cloud-based services like computing, storage, and software. MSPs need to focus more on CSPs due to data sovereignty concerns. 
• Cloud Solutions Provider: Similar to Cloud Service Providers but with some added MSP elements. They offer core services like compute/storage, as well infrastructure, platforms and applications.  
• IT Consultant or Technology Consultant: A broad term that includes strategic advice and oversight as well as ongoing IT support. Many IT consultants also act as MSPs. 
• Systems Integrator: Integrates different IT systems and ensures they work together smoothly. Used at the set-up rather than the ongoing management phase. MSPs may have these specialists as part of their teams.  
• Business Process Outsourcing (BPO): A provider of more general business function outsourcing services, but which might include IT management and so crossover with MSP services. 
• IT Support Firm: Essentially another name for MSP. Offers reactive IT support, troubleshooting and maintenance services.

Sprechen Sie MSP?

The term “MSP” is widely used in the English-speaking world and is becoming more common elsewhere. However, it is sometimes lost in translation. 

For example, German MSPs may use the term IT-Systemhaus, or simply Systemhaus. 

Here is a quick trip around Europe to share some other terms for an MSP. 

German 

• IT-Systemhaus 
• IT-Dienstleister 
• Managed Services Anbieter 
• IT-Betreiber 
• Outsourcing-Partner 

French 

• Fournisseur de services managés (FSM) 
• IT Infogérant / Infogérance 
• Prestataire de services IT 

Spanish 

• Proveedor de servicios gestionados 
• Proveedor de TI / Servicios TI 
• Outsourcing TI 

Italian 

• Fornitore di servizi gestiti. 
• System Integrator / Integratore di sistemi:  

Netherlands 

• IT-dienstverlener 

So now you know.

And we know our MSP GLOBAL community extends beyond these languages, so head on over to our LinkedIn poll and share your definition of an MSP and drop us a message if we need to update this blog to better reflect the amazing MSP community.

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