Without a managed IT services calculator, estimating managed IT services pricing can be hard.
An organization’s size, data complexity, budget, needs, and goals, there many factors that can increase or decrease a provider’s managed IT services price list.
To find out more about managed IT services pricing and factors that influence costs, this blog will touch upon everything a business leader should know.
Managed IT Pricing Models
Being familiar with an organization’s network, technologies, and infrastructure are the first steps to accurately roadmapping a managed service pricing model that’s a good business fit.
In addition to knowing the capabilities of your internal IT team and what it takes to maintain peak performance, a business owner should know that managed services are generally offered in one of two ways:
- Break-Fix: Reactive IT services that are generally provided under a supplemental capacity. Also known as pay-as-you-go services, break-fix services are priced “per hour”, while additional charges may apply for additional service offerings such as network troubleshooting or monitoring services.
- Managed Services: A managed services plan delivers proactive IT support, infrastructure management, consulting, cybersecurity, vendor management, disaster recovery, cloud services, and more for a fixed monthly fee. Price ranges vary depending on the scope of help desk support, site support, number of users, and data complexity.
The billing structure of managed services enables businesses to map out the month-to-month cost and provides the scope of what an organization can expect to pay over the long haul. Outside of offering monitoring-only services, managed IT services are typically billed as:
|Tiered||Also referred to as product bundling, tiered managed services increase in service comprehensiveness from tier to tier, with the highest tier often including advanced services such as firewall-as-a-service or IT procurement.|
|A La Carte||A form of managed services that specializes in providing more private, business-specific IT services (which often possess greater complexity and granularity) than what is commonly offered with managed services.|
|Per User, Per Month||A fixed monthly fee that is billed as per user per month. Often fluctuates between $35 to $250 per device/month.|
|Per Device, Per Month||A flat monthly fee billed on a per device/per month basis.
Ranges from $125 to $175 per user, per month.
|Unlimited or ‘All You Can Eat’||Not commonly offered, All You Can Eat service plans are typically reserved for larger organizations that expect all-round IT support.|
6 Factors that Influence Managed IT Services Rates
Managed IT costs fluctuate from a number of factors, including but not limited to the size, structure, needs, budget, goals, and compliance requirements of a business. Here are six major factors that also influence managed IT pricing:
- Data Complexity – The sophistication involved in managing an organization’s data is known as data complexity. As data complexity rises, so also does the cost of managed services.
- Number of Users – The attack surface of a business grows as they take on new employees, increasing the number of access and data points. The more users supported, the greater the costs.
- Number of Servers – Managing servers can be incredibly challenging and adds a significant deal of data complexity, thereby increasing costs dramatically for each server.
- Required Service Time – The total time that an MSP spends to address issues across an infrastructure or remediate IT problems can significantly raise managed IT costs.
- Regulatory Compliance – Organizations that operate in more heavily regulated industries, such as healthcare, legal, and financial services, require comprehensive business continuity, disaster recovery, and data protection and retrieval methods
- Current (and Future) Infrastructure Needs – Companies are continually evolving, requiring ongoing adjustments to infrastructure to support growth, improve capabilities, and maintain productivity. Entities that fail to keep their IT and goals aligned will experience added friction throughout its various growth phases.
Generally, MSPs offer service level agreements, or SLAs, which clearly define and bound the terms and conditions of a managed services agreement between an MSP and a client company. When compared to break-fix services, which render after-the-fact support, managed services provide proactive IT services and support that are scalable to an organization’s demands.
For businesses seeking to supplement their IT department, break-fix services are an ideal fit. However, for businesses seeking more comprehensive support and access to proven technology experts, then managed services are the best route.
Interested in learning more about managed IT services? Check out these blogs:
Estimate Your Managed IT Costs Today With Executech
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