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A service provider is a vendor that provides IT solutions and/or services to end users and organizations. This broad term incorporates all IT businesses that provide products and solutions through services that are on-demand, pay per use or a hybrid delivery model.
A service provider's delivery model generally differs from conventional IT product manufacturers or developers. Typically, a service provider does not require purchase of an IT product by a user or organization. Rather, a service provider builds, operates and manages these IT products, which are bundled and delivered as a service/solution. In turn, a customer accesses this type of solution from a service provider via several different sourcing models, such as a monthly or annual subscription fee.
Examples of service providers include: