Let’s be honest… when it comes to managed IT services, pricing is top priority for almost every single CIO. Though cost cutting may not be the topmost agenda, getting the most value out of the IT spend sure is.
But there’s no easy answer to “how much do managed IT services cost?” Even if you use a managed IT service calculator, there are a lot of variables involved in cost–not least the size and scope of your infrastructure, the size of your IT, and even the industry you’re in will impact IT costs.
In this article, we’ll try to break down managed IT pricing and help you make an informed decision for your business.
Managed IT Services Price Lists? You Should Look at the Value You’re Getting, Instead
One of the most common mistakes is trying to assess managed IT costs in isolation; you need to see them in a comparative context. You should compare the costs (and benefits) against the costs and benefits of maintaining an in-house team.
Weigh the costs of hiring a managed services provider (MSP) against hiring an IT professional yourself (FYI average IT salaries are hovering around $71,000 right now).
There will be ongoing overhead costs too, often taking the form of HR resources and regular training (with no reminders needed on how fast-paced IT is). You will still have to invest in your own technologies and bear the associated risks with rolling out yourself.
Consider then, in that context, that a predictable monthly fee gives you access to a team of IT experts and the latest technologies, and managed IT costs suddenly look a whole lot more appealing.
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How Much Do Managed IT Services Cost? That Depends on Your Pricing Model
Managed IT services typically follow a subscription model, meaning a recurring fee that’s payable monthly (usually), though may also be quarterly or annually depending on the MSP and your needs.
It’s as simple as it sounds, you’ll sign a Service Legal Agreement (SLA) and pay a fixed monthly fee for a certain bouquet of IT service offerings such as remote support and disaster recovery. If you need any services out-of-scope, these may be billed separately on an hourly rate.
There are four common managed services plans:
1. Per-User Pricing
This is one of the most common pricing models, allowing companies to pay a flat fee per month per user for specified services. End users are counted during onboarding and reconciled regularly, making it easy for you to scale services as your business grows.
- $175-250 per month, per user
At Yardstick Technologies, We Can Offer Lower Prices, Made to Fit Your Budget
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2. Per Device Pricing
Here you’ll pay a fixed fee per month per device that’s being managed by the MSP. This pricing model is a great option if you don’t have a lot of users but a lot of devices to manage. Note that not all devices cost the same to manage. Although,.needless to say, managing even one server costs more than managing a desktop or a mobile device.
- $200-250 per month, per server (monitoring and management)
- $50-100 per month, per user-device
- $25-75 per month, per piece of networking equipment
3. Tiered Pricing
Also common are bundled service packages that offer a set menu of services (such as Standard, Gold, Platinum plans). Flexible, tiered pricing, such as the Total Network Care Program we offer, can cover all of your technology needs and simplify your budgeting enormously.
However, not all tiered managed IT pricing plans are flexible and there is a risk of getting bundled services that don’t add value. Make sure you speak to the MSP about these before you sign on.
- $3,000-6,000 per month, depending on package level
4. A La Carte Pricing
As the name suggests, you can pick and choose the services you need on an ongoing basis and pay only for them. This option could be ideal if your organization has unique needs or if you’re looking to augment in-house IT capabilities.
- $30-100 per user/device per month
Assessing Managed IT Costs and Making an Informed Decision
With the pricing models discussed, let’s look how you can assess managed IT services rates, and make an informed decision for your business:
1. Do your due diligence. An informed customer is an intelligent customer, and you cannot afford to skip on due diligence.
Speak to a few MSPs, get references from peers, and compare what you’re getting for how much. For instance, if prices sound too good to be true, they probably are. On the other hand, if an MSP is charging a little bit more, check what more they offer (for instance experience or industry expertise).
2. Align IT services with your needs. Underestimate the services you need and you’ll run into headaches, overestimate the services you need and you’ll end up overpaying.
Consider the IT services you need right now and what you may need months from now as your business grows.
3. Know your budget. Calculate how much you are spending on managing IT services internally right now (including how much more you may be spending after a few months).
Many businesses also calculate this as a percentage of revenue. Once you know your budget, it’ll be much easier to assess the value you’ll receive from outsourced IT services.
4. Finding a trusted IT partner. Just as your business is unique, so are MSPs.
Different providers will offer different levels of experience, technical expertise, and even dependability. Take advantage of initial consultations to evaluate their approach and if they’ll be a good fit for your organization.
More resources to help you make informed IT decisions:
Get Accurate Managed IT Services Pricing Today
Managed IT services ROI calculators are notoriously–gimmicky. Instead of a “price” that doesn’t remotely reflect the services you need, get in touch with us today. Tell us about your IT needs and we’ll get back to you with tailored pricing options.
And it’s that simple at Yardstick Technologies, we offer more value for less.