Managed IT services allow businesses to save time and money on IT operations while an experienced firm manages their infrastructure.
A majority of businesses rely on an IT provider, with 64% of business owners using managed services for at least one IT function, and it’s easy to see why. They gain a reliable partner who minds their IT, allowing them to focus on core business functions.
Outsourcing your IT management can improve your bottom line and save you the hassle of having to manage internal IT staff. However, before you decide to outsource your IT, you have to ask the key question: what does managed IT services cost?
In this article, we will take a closer look at the different types of managed services and their various pricing models.
If you are considering outsourcing your IT, the first question on your mind might be “How much does managed IT services cost?”
Managed IT service costs often vary from one MSP to another. Determining factors include:
- Your MSP’s pricing model
- The required level of IT management
- The complexity of your industry
Companies that use more advanced business technology cost more to manage. The way your MSP decides how to price their IT managed services also affects cost.
For example, some MSPs price services based on the number of users, while others offer flat-rate packages.
Understanding the variables that impact managed IT services pricing will help you find the right MSP for your needs without breaking your budget.
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Managed IT Pricing Models
Part of the cost of IT outsourcing is how the MSP determines the price for their services. The three most common IT services pricing models are:
There are pros and cons to each, which is why it’s crucial to understand how they work to find an MSP that offers the pricing model that works best for your unique business needs.
The flat-rate model charges one regular fee – usually a per-month price – for your IT services. This model provides services for all your IT, regardless of how many employees or devices you have.
Flat-rate is typically the priciest model, but the rate covers everything outlined by your IT partner’s Service Level Agreement (SLA), all for one predictable price. That means no surprise fees.
Some managed services do charge an hourly rate for a site visit from a specialized technician if a problem is outside the SLA. There are generally no additional charges for resolving the issue.
Per-user is the most common pricing model. MSPs that offer per-user pricing charge you a monthly fee based on the number of users their services cover.
This pricing model is more cost-effective for companies with fewer users or that have users operating multiple devices. You get charged per-user, and not the number of devices they’re using.
The per-device pricing model charges clients based on the number and types of devices covered within an IT environment.
For example, a per-device managed IT services price list might look like this:
- $25 per mobile device
- $20 per desktop
- $150 per server
Add up all your covered devices to determine your monthly cost.
This model is perfect for businesses that rely heavily on shared IT devices because users do not affect the device pricing.
What Level of IT Management Do You Need?
Another major MSP cost factor is the level of service. Managed IT services will cost more or less based on what degree of management you need.
Simplified management of your entire IT infrastructure costs less than comprehensive management.
There are two basic levels of IT management for businesses to choose from:
Partially Managed IT
Partial IT management allows you to pick and choose the exact services your business needs.
This model is perfect for businesses that already have an in-house IT team but need to offload specific IT management tasks, like break-fix management or remote support.
This kind of IT management lets you intelligently delegate some of your managed services to an outsourced IT firm, while your in-house team focuses on more profit-generating IT tasks.
Fully Managed IT
Complete IT management allows you to hand the entire responsibility of managing your business’s IT to an MSP.
Instead of investing in expensive hardware, software, and personnel, your MSP can provide you with all the assets and the services you need to keep your IT operating at peak performance.
Managed IT Services ROI Calculator
The best way to determine IT services prices is to use a managed IT services pricing calculator.
But before you jump to the calculator, it’s important to understand how much you’re currently spending on IT management per month, in addition to the severity of your IT issues.
Knowing the ROI and workload of your current IT team will help you evaluate what level and type of service your business needs to calculate costs accurately.
Another thing to consider is that managed IT costs are highly scalable. As you grow, your ROI calculator can end up showing a higher yield. As a result, when you calculate ROI, you should factor in your future IT goals.
Maximize Profit With an Industry-Leading MSP
When you calculate your ROI for outsourcing your IT, it’s crucial to consider the many variables in play.
From determining which pricing model to choose to the level of IT management you require, there are many ways to customize outsourced managed services to maximize your ROI.
At Vermont Connections, we have the experience and the right solutions to help your business boost its ROI. We’ve helped companies in Vermont and beyond maximize their growth for over 20 years.
Contact us today and resolve your IT issues with our outstanding managed IT services.