How Much Should Managed IT Services Really Cost You?

calculating cost of MSP

Managed IT services are technology services offered by a third party provider in addition to or instead of an in-house IT team. These services can be highly beneficial to your organization, but how much should they cost you?

Managed IT services may include infrastructure management and tasks, such as desktop and communications, storage, technical support and mobility. High-level Managed Service Providers (MSPs) usually have a wider scope than other MSPs or in-house professionals, allowing them to handle both simple and complex IT issues so the client can focus entirely on core business management tasks.

However, getting an exact price of high-level managed IT services may be difficult for small or medium-sized businesses. High-level MSPs especially may shy away from sharing pricing information openly because their competitors can sometimes offer services at a lower cost, but those same competitors might be either lower quality or don’t fit within the true scope of your organization.

To realize how much managed IT services should cost you, you need to consider how pricing is determined in the managed services industry and what type of managed services your business could most benefit from.

How is Pricing Determined?

The pricing of managed IT services is dependent on several factors, such as location, provider, technology involved and customer in question. However, a few basics can guide you on determining how much it would cost you.

1. Per-user Pricing

Some managed IT service providers cost their services based on the number of users being cared for and monitored. A user is defined as anyone in your company who uses the technology, virtually every employee in most company setups.

Anyone who would require IT support, whether a mobile phone, tablet, Mac, PC or laptop, is considered a user. As of March 2020, the going rate was between $100- $150 per person per month; however, advanced needs may have the price go up to $200-$250 per person per month.

2. Per-Device Pricing

Pricing per device essentially charges you based on the number of devices utilizing the technology. This method requires you to include all of the devices you would want to use, such as phones, tablets, laptops, PCs and Macs. Per-device pricing with mid-range services could cost you between $120-$500 per server, or between $30-$120 per workstation.

Managed IT Services Options

Another factor that determines the cost of managed IT services is the service levels. There are three main tiers of services levels:

Basic IT Services

Basic IT services include entry-level IT management services. Essentially, the providers act as a base-level security team, monitoring and notifying you in case of any incidents. This level comes with benefits like having certain security benefits at a lower upfront cost.

While cheaper than higher-level services, basic IT services are often insufficient for growing businesses. And while this level of service offers the lowest price initially, it can come with high variable costs as you seek to expand your infrastructure or enhance your security. These services are also not designed to provide long-term strategic solutions according to specific needs.

Mid-Range IT Services

Mid-range services offer several more services than basic managed services. A mid-level provider will keep track of your systems with services, such as IT design, planning, strategy, on-site and remote support, system backups and disaster recovery.

Mid-range IT services are more expensive initially, but the long-term benefits save you a tremendous amount of money by rolling in several services into your flat-rate package. Mid-range services are often priced using the per-user or per-device method, but some providers may price based on solutions offered.

It’s important to keep in mind that while mid-range IT services are often a better option than basic services, they still don’t generally provide advanced cybersecurity services, such as penetration testing, Dark Web scanning, access control and authorization or compliance security solutions.

High-Level IT Services

This particular tier is specific to companies that need a comprehensive range of managed services, including infrastructure management, support services and advanced cybersecurity. Cloud migration, management and risk mitigation are also generally involved in high-level managed services.

A fully-hosted service could cost you anywhere from $300 per user per month or higher, depending on the range of services needed and their complexity. Often, the complexity of the technology matrix, the existence of an IT team and the need for comprehensive, individual or partial services are factors that high-level MSPs consider while pricing their services.

How AxiaTP Can Help

At AxiaTP, we offer a variety of managed IT services to protect your business. Rather than offer basic break/fix solutions, we dedicate ourselves to understanding the unique needs of your company so we can offer customized solutions.

We also help you save money by offering these services at a flat rate to ensure maximum productivity and cost-effectiveness. We also offer industry-focused support to ensure you aren’t paying for generalized solutions that could risk your compliance status or lower productivity rates, saving you additional costs.

With AxiaTP, you can have peace of mind knowing your most important data is safe through our security managed IT services. To learn more about these services, contact us today.