A service level agreement (SLA) between a Managed Service Provider (MSP) and its client that outlines both parties’ responsibilities, including which services the MSP will provide, minimum response time, and liability protection for the MSP. The contract also specifies the payment structure. Many MSPs, although not all, offer their services on a flat-fee basis, charging a flat-fee per month for each desktop or server, for example.
A managed service rental/lease is a hardware rental program that matches the MSP’s Managed IT Services selling process and incorporates a standard technology stack bundled with monthly services fees. The equipment and installation are funded to the MSP up-front, and the services are billed monthly, collected from the lessee, and passed through to the MSP.