The distinction between MSPs and cloud providers confuses many business leaders. They serve complementary, not competing, functions. Understanding the difference helps you build the right technology support structure.
What Cloud Providers Do
Cloud providers offer infrastructure, platforms, and services on demand:
| Provider | Key Services |
|---|---|
| Amazon Web Services (AWS) | EC2 (compute), S3 (storage), RDS (databases), Lambda (serverless) |
| Microsoft Azure | Virtual machines, Azure AD, SQL Database, Microsoft 365 |
| Google Cloud Platform | Compute Engine, BigQuery, Kubernetes Engine |
Cloud providers are responsible for:
- Physical data center security and maintenance
- Hardware availability and redundancy
- Network infrastructure between data centers
- Platform/service availability per their SLA
Cloud providers are NOT responsible for:
- Your data security within their platform
- Your application configuration and optimization
- Your user management and access controls
- Your backup strategy and disaster recovery
- Your compliance with regulations
- Your end-user support
What MSPs Do
MSPs manage your IT environment, including cloud resources:
- Configure and optimize cloud services for your needs
- Manage security across all platforms (cloud and on-premises)
- Provide helpdesk support for your employees
- Monitor and maintain all systems 24/7
- Handle backup, disaster recovery, and business continuity
- Manage vendor relationships (including cloud providers)
- Provide strategic IT advisory (vCIO)
The Shared Responsibility Model
Cloud providers operate on a shared responsibility model. AWS phrases it as: "Security OF the cloud" (their job) vs. "Security IN the cloud" (your job).
| Responsibility | Cloud Provider | MSP | You |
|---|---|---|---|
| Physical infrastructure | Yes | No | No |
| Network availability | Yes | Monitor/optimize | No |
| OS patching (IaaS) | No | Yes | Previously yours |
| Application management | No | Yes | Shared |
| Data security | No | Yes | Shared |
| User access management | No | Yes | Define policies |
| Compliance | Tools available | Implementation | Oversight |
| Backup/DR | Tools available | Implementation | Define requirements |
| End-user support | No | Yes | Report issues |
When You Need Both
Most businesses need both a cloud provider and an MSP:
Cloud provider gives you: Scalable infrastructure, compute power, storage, and platforms. MSP gives you: Someone to set it up, secure it, manage it, and fix it when things break.
Example: Your business runs Microsoft 365 (cloud) and needs someone to manage user accounts, security policies, email protection, and troubleshoot issues when employees cannot access their email. The cloud provider (Microsoft) provides the platform. The MSP manages your use of it.
When You Might Not Need an MSP
- Businesses with a skilled internal IT team that manages cloud directly
- Very small businesses (1-5 people) using only SaaS applications with minimal support needs
- Tech companies where IT expertise is core competency
Frequently Asked Questions
If I use Microsoft 365, is Microsoft my MSP?
No. Microsoft provides the platform. You still need someone to manage user accounts, configure security policies, handle support tickets, and maintain your environment. That is the MSP's role.
Can an MSP replace my cloud provider?
No. MSPs do not typically operate data centers or provide cloud infrastructure. They manage your use of cloud providers. Some MSPs offer hosted services using cloud infrastructure, but the underlying cloud provider is still separate.
Do I pay both the cloud provider and the MSP?
Yes. Cloud provider fees (Microsoft 365 licenses, AWS usage) are separate from MSP management fees. Some MSPs include certain cloud licenses in their per-user pricing; others bill them separately.
Can my MSP manage multiple cloud providers?
Yes. Many businesses use multiple clouds (Microsoft for productivity, AWS for infrastructure). A competent MSP manages multi-cloud environments.
How do I know if my MSP is managing my cloud effectively?
Ask for regular cloud utilization reports, security posture assessments, and cost optimization recommendations. An MSP should actively optimize your cloud spending, not just maintain the status quo.
The Bottom Line
Cloud providers and MSPs serve complementary functions. Cloud provides the infrastructure; MSPs manage your use of it. Most businesses need both for a complete, well-managed technology environment.
For more, see our complete MSP guide and cloud services guide.
Related Reading
- Co-Managed IT: When You Need Some Help But Not All
- Questions CEOs Should Ask Their MSP
- Tier 1 vs Tier 2 vs Tier 3 MSPs
- All-You-Can-Eat MSP Pricing Strategy
- Veeam Cloud Connect for MSPs Review
-- The MSP Finder Team