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What Every Business Should Know Before Signing with an MSP

Some managed service providers operate on a calculated assumption: clients will not know their fundamental rights! Repeatedly, this dynamic proves just how costly that knowledge gap can become.

The Stakes Are Real

Fundamental Rights in Any MSP Relationship

Before signing your next service agreement, verify these essential protections are explicitly addressed.

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Complete ownership of all your data and documentation

Everything generated during the engagement, network topology maps, system configurations, access credentials, standard operating procedures, tenant configurations, firewall policies, and technical documentation, is your property from day one.

Warning sign: Providers asserting that runbooks, passwords, or infrastructure diagrams constitute their proprietary assets.

How Micro Enterprise Solutions handles this: We maintain complete documentation of your environment and provide it to you in accessible formats (PDF, DOCX, XLSX) on request at any time during our engagement. Real-time copies of all passwords, credentials, and technical documentation are stored in your own documentation platform under your control. We document everything we do as we do it, not as an afterthought during offboarding.

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Unrestricted ability to terminate the relationship

Your MSP cannot obstruct your departure, delay transition processes, or leverage system access to prevent you from changing providers.

Warning sign: Intentional delays masked as 'standard procedures' or 'compliance requirements.'

How Micro Enterprise Solutions handles this: Our contracts include a 30-day termination clause with no penalties. When clients choose to move on, we provide a comprehensive transition plan within 5 business days, maintain full-service levels throughout the notice period, and coordinate scheduled knowledge transfer sessions with your new provider.

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Absolute control over your Microsoft 365 environment

No provider has authority to remove your tenant, block Global Administrator access, or manipulate licensing to obstruct your transition to a new MSP.

Warning sign: Claims that maintaining them as your reseller is technically necessary for system functionality. This is categorically false.

How Micro Enterprise Solutions handles this: We ensure clients always maintain Global Administrator access in their Microsoft 365 tenant. We never position ourselves as the sole admin. Our administrative accounts are clearly labeled for easy identification; we create admin accounts with "MES" in the name and document all privileged access. If you choose to change resellers or bring licensing management in-house, we provide step-by-step guidance and assist with the MSP partner transition at no additional charge.

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Independent selection of your licensing reseller

Microsoft's partner ecosystem allows you complete autonomy in choosing and changing who manages your licensing relationships.

Warning sign: Assertions that 'Microsoft policies prevent' partner transitions. These claims are fabricated.

How Micro Enterprise Solutions handles this: We do not resell licenses unless a product is only available through channel partners. We encourage clients to purchase directly from major distributors like CDW, Insight, Dell Direct, or Amazon business, where they can leverage volume pricing and enterprise discounts. We explain the CSP (Cloud Solution Provider) model transparently and help you evaluate which purchasing channel makes the most financial sense for your organization. We have helped clients transition their licensing between resellers and optimize their procurement strategies; we never create artificial dependencies or claim exclusivity over your licensing relationship.

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Professional, documented transition protocols​

Ethical providers never terminate access immediately, skip transition planning, or refuse to document handover procedures properly.

Warning sign: Immediate service cutoffs the moment you express intent to leave. This behavior is both unprofessional and damaging.

How Micro Enterprise Solutions handles this: Our standard offboarding process includes a documented transition checklist covering: complete credential handoff, scheduled knowledge transfer sessions (typically 2-4 hours), configuration documentation review, third-party vendor contact information, and open ticket resolution or transfer. We treat offboarding with the same professionalism as onboarding, it is a reflection of our values and commitment to doing right by our clients.

 

Critical Contract Protection

The 30-Day Flexible Exit Provision

Require this language in every MSP contract you sign. It protects you from punitive termination practices and ensures smooth, professional transitions.

Recommended contract language:

Termination for Convenience. The client may terminate this Agreement for any reason with thirty (30) days' advance written notice. No termination fees, penalty charges, or liquidated damages will be assessed.

Continuous Service During Notice Period. The MSP will maintain full-service levels, administrative access, and licensing throughout the notice period and until the effective termination date, without service degradation, deprovisioning, or access restrictions.

Transition Support. The MSP will provide reasonable transition assistance billed at standard hourly rates, including complete documentation transfer, credential handoff/escrow, and coordinated knowledge transfer with the successor provider.

Documentation and Data Rights. All client data, technical documentation, network diagrams, system configurations, SOPs, and authentication credentials developed or maintained under this Agreement remain client property and must be provided in editable, portable formats upon request.

Reseller Independence. Client retains sole authority to modify its Microsoft reseller/partner of record at any time. The MSP will not create barriers or delays to such modifications.

Post-Termination Obligations. Confidentiality provisions, data protection responsibilities, and security commitments remain in effect beyond termination. The MSP will not delete, disable, or compromise client tenant environments or system infrastructure.

How Micro Enterprise Solutions handles this: Our standard contracts already address these concerns. We believe in earning your business every month through excellent service, not through contractual lock-ins or punitive terms. Our client retention rate speaks for itself: over 95% of our clients renew annually because they want to, not because they have to.

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Getting out of a multiyear contract without an out-clause (NJ)

In New Jersey, getting out of a multi-year MSP contract without an out-clause and without paying the remaining balance is challenging, but there are several potential approaches:

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Breach of Contract by the MSP

If the MSP has materially breached the contract, the client may have grounds to terminate without penalty:

  • Failure to provide agreed services - Document instances where the MSP did not meet SLA commitments, response times, or service standards outlined in the contract.

  • Security failures - If the MSP's negligence led to data breaches or security incidents

  • Incompetence or gross negligence - Persistent failures that demonstrate inability to perform contracted services.

You would need thorough documentation: tickets, response times, downtime logs, email communications showing service failures.

How Micro Enterprise Solutions would handle this as your new MSP: If you are considering leaving your current MSP due to service failures, we can help you document the deficiencies properly. We will review your current contract, help you identify material breaches, and create a comprehensive service failure log with timestamps and ticket references. We have assisted clients in building documentation packages that successfully supported early termination negotiations, and in some cases, full contract releases when the failures were egregious enough.

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Fraud or Misrepresentation

If the MSP made false promises during the sales process that induced the client to sign:

  • Services promised but never delivered.

  • Capabilities claimed but not possessed.

  • Deliberate misrepresentation of credentials or expertise

How Micro Enterprise Solutions would handle this as your new MSP: We will review your original MSP proposal and contract against what was actually delivered. If there are clear misrepresentations about certifications, response times, staffing levels, or technical capabilities, we will help you document these discrepancies. We have seen cases where MSPs claimed 24/7 support but only staffed during business hours or promised dedicated engineers but rotated junior technicians, these are actionable misrepresentations.

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Negotiate a Settlement

Even without legal grounds, practical options include:

  • Offering a reduced buyout (3-6 months instead of full term)

  • Propose transition assistance in exchange for early termination.

  • Leverage documented service failures as negotiating pressure.

How Micro Enterprise Solutions would handle this as your new MSP: We can identify potential contract violations that your attorney should evaluate. Our technical assessment reveals what's missing: incomplete documentation, withheld access, unresolved service failures, or inadequate transitions. We know what professional MSP service looks like, so we recognize when it falls short. We'll provide your attorney with detailed technical documentation of any deficiencies we observe, giving them the evidence they need to assess breach claims and negotiate effectively on your behalf.

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Professional MSPs make this guidance unnecessary: Until all providers adopt these standards, clients need this information to protect themselves!

Remember: Professional MSPs safeguard your business interests. Predatory MSPs safeguard their revenue streams. Understanding this distinction matters.

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Disclaimer: This represents general industry guidance and does not constitute legal advice. Engage qualified legal counsel to review any contractual provisions before execution.

©2022 by Micro Enterprise Solutions

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