What is a System Integrator (SI)?
A System Integrator (SI) offers third party software and hardware to the end user at a markup, along with some combination of procurement consulting, configuration, and customization services.
They charges the flat-rate fees per license, and billable hours, but their engagement is finite, reactive and limited. This system pays in term of hours used, therefore, in some ways, it actually rewards inefficiency and ineffectiveness. It does not incentivize the SI to improve their process, work flow and engineer competency.
What is a Managed Service Provider (MSP)?
The Managed Service Provider (MSP) is a company that plans, builds, deploys, operates, manages and maintains your business IT Infrastructure for a finite of time (3 months/6 months/12 months) in exchange for a recurring fee.
They typically offer a range of services such as network maintenance, network security, hardware repair, help-desk, web hosting, web design, email hosting and administrationa, and anything else that requires a day-to-day administrator to keep running. They also need to purchase IT hardware, software and solution from a 3rd party vendor, a cost which is bundled with their services and passed on to their customer.