A Closer Look at Managed IT Services Pricing

Businesses often research managed IT services pricing when ready to make the leap to an MSP.

Unfortunately, what many don’t realize is that there are a number of factors that influence overall service pricing. And without a managed IT services calculator, it can be quite challenging to accurately estimate managed IT costs with all the variables involved. 

Given those reasons, this blog will tackle the following: 

• Managed IT Pricing Models
• Factors that Influence Managed IT Services Costs
• How to Estimate Costs Without a Managed IT Services ROI Calculator

IT Service Pricing Models

Understanding how IT services are structured provides clarity to a business owner. In most cases, the pricing model of IT services is generally available in two ways. These include: 

Break-Fix

Often referred to as pay-as-you-go, break-fix services are reactive and billed on an as-needed basis, as opposed to paying a fixed monthly fee for ongoing proactive security and support. Break-fix services are provided at an hourly rate, which averages between $125 to $225.

Industry studies show that break-fix is generally on the decline, driven by the proliferation of cybercrime and the frequency at which new technologies continue to emerge. Often break-fix annual costs and response times are unpredictable, especially due to fixing technical and operational issues that might not have occurred if appropriate security and preventative monitoring and management were implemented through an IT Managed Services approach.  With break-fix, typically the burden of keeping up with new technologies remains with the organization, despite not having adequate resources in-house. Perhaps most importantly, without proactive and preventative security protections, organizations are risking expensive breaches, costly downtime, and reputational damage. Alternatively, IT Managed Services providers have dedicated teams and experts who ensure that customers can leverage new technology, while increasing productivity and minimizing security risks.

 

 

Managed IT Services

Available for a fixed monthly rate, managed IT services allow businesses to structure their service offering around their needs, budget, and goals. Depending on the number of users, cyber security needs, and level of desk support required, businesses can expect to pay a predictable monthly fee for supported services and site support.

In most cases, managed IT services costs are defined (and bound) within a Service Level Agreement (SLA).

Pay special attention that SLAs clearly define the following:

• Terms
• Pricing
• Coverage

To expand, managed IT services are often billed by the following structures: 

• Tiered: Tiered pricing offers incentivized managed IT service packages that increase in service comprehensiveness from tier to tier.
• A La Carte: Managed IT services that deliver enhanced service customizations (generally around business-specific processes) with added discretion and service scope.
• Monitoring Only: Highly variable service levels that are often accompanied by an IT helpdesk, 24/7 infrastructure monitoring, real-time alerting services, and more.
• Per User, Per Month: A flat monthly fee that is jointly billed as per user per month.
• Per Device, Per Month: A fixed monthly fee billed as per device per month.
• ‘All You Can Eat’ (Unlimited): Generally for large businesses with open-ended budgets who can afford unlimited remote and on-site support, security services, consultation services, and more. 

 

Factors That Impact Managed IT Costs

How much do managed IT services cost? Well, that depends on a number of factors. Among the core factors that impact managed IT costs are: 

 

Factors That Influence Managed IT Pricing
Data Complexity	Businesses are ever-changing, continuing to add new processes, servers, and systems to their infrastructure. As a result, data complexity has risen significantly. Therefore, the greater the data complexity, the higher the costs.
Number of Users	For every protected user, there are access points and endpoints that need securing. For more users a business needs protection, the higher the costs.
Number of Servers	Servers elevate an organization’s data complexity. The more servers that need support, the greater the complexity involved. As a result, managed IT costs rise.
Service Time Needed	The total time an MSP expends towards remediating issues can significantly impact the costs of managed IT services (unless otherwise specified within SLAs).
Evolving Infrastructure	Managed IT services rates fluctuate depending on the current (and future) needs of a business and its budget. Additionally, MSPs help businesses keep their infrastructure aligned with their business goals.
Industry Verticals Supported	Businesses operating across regulated industries like financial services and healthcare, often require compliance consulting services and business continuity solutions to achieve and maintain regulatory compliance.

 

For more information, read these blogs: What Are Managed IT Services The Complete Guide to Managed IT Service Benefits Advantages of Managed IT Services for Small Businesses

 

Get Your Managed IT Services Rates With Us Today

Why there’s no all-in-one managed IT services price list that businesses can use?

WE UNDERSTAND: The needs of every business are unique and impossible to accurately estimate without more granularity about the organization’s needs, budget, and goals. 

For those reasons, the team at powersolution has come together to help large to small business owners not only better understand their needs but get managed IT estimates that are accurate. With more than 26 years of business experience, an average CSAT rating of 98%, and our average client retention rate between 5 to 20 years, you know we’re an MSP that’s trusted. 

For more information regarding our managed IT services, request an IT consultation today.