Distinguishing the Salesforce MSP Partner Program from an Outsourcing Service Provider

Audience: MSP, OSP.

Overview of Salesforce MSP and OSP Partner Models

The Salesforce Managed Service Provider (MSP) Partner Program and Outsourcing Service Providers (OSPs) both involve external parties collaborating with Salesforce solutions, but they differ significantly in terms of license ownership, service scope, and operational structure.

1. License Ownership and Management

Outsourcing Service Providers (OSPs):

• License Ownership: The OSP purchases, owns, and operates Salesforce licenses on behalf of its clients.
• Operational Role: The OSP signs contracts directly with Salesforce and becomes the official license holder. The client does not manage Salesforce licenses directly.
• Service Model: The OSP integrates Salesforce usage into a broader outsourced services offering, such as IT support, administrative services, or infrastructure management. They allocate licenses, configure the platform, and bundle these services.
• Responsibility: The OSP is responsible for managing the Salesforce environment and license administration.

Managed Service Providers (MSPs):

• License Ownership: The client organization purchases Salesforce licenses directly from Salesforce and retains full control over the licenses.
• Operational Role: The MSP does not own the licenses but offers specialized services like planning, implementation, customization, and maintenance of the Salesforce platform.
• Service Model: The MSP focuses on delivering expertise to optimize Salesforce usage, such as technical assistance, system enhancements, and new feature rollouts. They do not oversee license management.
• Responsibility: The MSP provides ongoing support and platform development, while the client organization manages the licenses.

2. Service Scope and Cost Structure

Outsourcing Service Providers (OSPs):

• Service Scope: OSPs tend to operate as broad-scale outsourcing specialists, offering a range of enterprise solutions, with Salesforce integrated as one part of a larger services bundle.
• Cost Structure: Since the OSP controls the licenses, the client typically receives a consolidated invoice that includes both the software and the outsourced services.

Managed Service Providers (MSPs):

• Service Scope: MSPs focus specifically on delivering ongoing support and improvements related to the Salesforce platform.
• Cost Structure: There are generally separate contracts—one between the client and Salesforce for licenses and another between the client and the MSP for management and advisory services. This structure provides clearer cost delineation, with clients understanding how much they pay for licenses versus service fees.

3. Key Differences Between OSPs and MSPs

• License Ownership: OSPs own the licenses and manage them for their clients, while MSPs help clients who directly manage their Salesforce licenses.
• Service Scope: OSPs provide a broader range of outsourcing services, incorporating Salesforce as one element. MSPs are Salesforce-focused, concentrating on platform optimization and management.
• Cost Structure: OSPs offer consolidated billing for licenses and services, while MSPs provide separate invoices for licenses and services, offering clearer cost transparency.