How much will Managed IT services really Cost You?

How much will Managed IT services really Cost You

Last Updated: September 2, 2021

Almost everything always comes down to pricing. People are accustomed to opting for the more economical solution and it’s not always a bad thing. It is vital to have a proper overview of the cost analysis of the services and supports we decide on. We’ve already discussed the hassles of not having managed IT support and the risks it brings along with it. Now, let’s move on to the part where you can have a proper estimation of how much managed IT services will cost your business.

Of course, there isn’t one solid answer to what the exact cost will be because it is absolutely dependant on the requirements and number of users or number of devices. Different businesses have different IT service models. Employees use a range of different applications and services depending on the business processes throughout the day. Similarly, there’s security and network protection to look into that extensively requires a robust IT service framework. Then there’s hosting and monitoring of the services, and also, data storage and backup, disaster recovery planning and execution, and many more. Basically, there is a range of different IT services and requirements, and based on which of these services is required for the business, the expenses will vary accordingly.

In general, Managed IT Services package can range from less than a hundred dollars to a few hundred dollars per user. This means the pricing is already susceptible to variations depending on how many users will be using the technologies. The range obviously depends on the nature and scale of services. Let us briefly analyze the different natures of managed IT services,

Partially Managed IT Services:

Most businesses will have an in-house IT team who are capable to handle most of the IT requirements themselves. This allows the company to handle minor tasks within the company itself. However, for some specialized services and for overly complex tasks the company can and frankly should seek outside assistance.  Partial Managed IT Services include support, administration backup, monitoring, and handling tasks that go beyond the scope of the job description or capabilities of the internal team but not the entire IT workload.

Fully Managed IT Services:

Some companies might decide to outsource the entire IT management as the more efficient and in some cases the most economical solution. This eliminates hiring IT professionals, identifying their work descriptions, and ultimately having any IT-related tasks to be conducted in-house. SMEs usually consult with third-party Managed IT Services providers for an expert opinion as well as state-of-the-art technologies to manage all kinds of IT requirements of the company 24/7. The entire workload is handled by outsourcing so the companies can focus more on other business processes and productivity.

Managed IT Service Pricing Models:

Service providers can have customized pricing models for different natured solutions that clients may need but the overall pricing model can be categorized as the following:

Per-User Pricing:

The most common model of Managed IT Services pricing is the per-user pricing model. Anyone using the technology provided by the vendors will be deemed as a user. Almost every employee can be termed as a user because they’d be using the technologies required by the business process at one time or another. Therefore service models have pricing plans based on the number of users operating the services. Basically, the more users you have who require IT support the larger the service expenses. This model is favorable when a single user is using multiple devices and requires IT support for all of them.

Per Device Pricing:

Another popular model for Managed IT Services is the per-device pricing model which charges the clients for the IT services on each device including Workstations, servers, and PCs, owned by the client. Not only is it easier to calculate the monthly billing as compared to the billing per user, but companies can also be charged less for the support of less complicated devices. If a single server is accessed by multiple users, this model will make more sense than paying on a per-user basis.

Fixed Pricing:

As the name suggests, a fixed pricing model for Managed IT services is charged at a flat rate on an hourly basis depending on the nature of service required. The charges depend not only on the requested service but also site visits and various other factors as per the situation. This model is more cost-effective for companies that do not require 24/7 assistance and support for their IT requirements. The companies who benefit greatly from this pricing model, they’re the ones who contact their service provider once every few weeks. However, if any company finds themselves frequently requiring these kinds of services they’re better off opting for a more long-lasting service model.

A La Carte Pricing Model:

All the pricing models discussed so far are all-inclusive models. However, there are companies that might require only a certain service from their service providers. For such cases, the best model to pick is the A La Carte Pricing Model as it lets the companies decide what particular service they require and pay only for that. This model is quickly becoming very popular as it proves to be the most cost-effective solution against the pre-defined packages.

The lingering question will always be “Is it worth it?” and the short answer is simply “Yes”. Considering the benefits and customized solutions for services as well as its pricing should clear the doubts once and for all about whether to opt for Managed IT services or not. There is obviously a wide range of pricing models to sort but the best option to choose is the one that brings the best value to your business with reduced time and effort. Companies that are unsure about their IT requirements might still not have a clear roadmap to the best plan to choose from but we’re here to help. Contact us or browse through our services for the best Managed IT Services that precisely fits the need of your business.

Author: Justin Fridell

Justin Fridell is the Founder of Fridell Technical Solutions. He loves to write helpful guides/articles to help business owners and homeowners deal with their IT needs.

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