The initial purpose of the MSP Association will be to promote awareness of what management service providers do. Eventually, the group will develop pricing models, delivery standards, and guidelines for members. They include Candle, Hewlett-Packard, McAfee.com, OpenView, and Silverback Technologies.

Management service providers offer any combination of network, storage, and systems management, as well as Web-site and systems-performance monitoring. They distinguish themselves in several ways from conventional outsourcers or carriers. Management service providers only target midsize companies, which in the past haven't had enough equipment or users to make outsourced network management cost-efficient. Also, they use a subscription pricing model, under which customers aren't locked into long-term contracts. In addition, management service providers use the Internet as the primary medium through which services are delivered and information is reported to customers.

The model lets midsize companies run their businesses using management software and services that they couldn't otherwise afford because they're essentially renting management tools, not buying them, says Corey Ferengul, program director for service-management strategies at Meta Group. Management service providers say customers typically will spend a few thousand dollars a month for their services.