What is the cost of Managed IT Services?

Are the costs of your company’s IT problems leaving you feeling dazed? If yes, you may want to consider using a Managed Service Provider. However, you would also need to give the associated costs some thought.

Engaging an MSP will most definitely provide relief as they work with you to get things back to a sense of “normal IT” however, this could be even more beneficial if you have a good understanding of what it is that the company needs, financial benefits would most likely be realised as well.

MSPs are not only there to fix what is broken or to fill a gap. A planned engagement with a clear understanding of the business goals will assist the MSP in providing you with an environment that meets the immediate requirement but is also geared up for future growth.

What does it cost, and how much can be saved?  Contact us

How Much Do Managed IT Services Cost?

A tricky question, and since each company has its own set of unique requirements, the initial consultation(s) with an MSP is critical in laying the foundations on which the engagement going forward will be based. As the relationship between Company and MSP evolves, amendments to the initial agreement and relevant SLAs are expected and are practically the norm.

The typical leading question you should have answers to before meeting with an MSP:

  • How many IT users are in your organisation?
  • What types of devices and quantities would need to be managed?
  • What do you want from your network?
  • Do you require a permanent IT resource, set schedule per week or month?
  • Are you happy to have incidents attended to remotely where possible?
  • What are your cloud service/solution requirements – now and in the future?
  • What is the company’s expected growth within the next 18 months?
  • If you have appointed IT staff, how skilled are they?

The answers to these questions vary, which is why managed IT costs differ for each business. But these questions are great baselines when looking at managed IT price lists.

There are no hard and fast rules on how and for what an MSP will base their pricing. When looking for an MSP and you discuss pricing options or models, you are most likely to run into one or two or even a combination of the pricing options below:

  • All-inclusive package that includes monitoring things like anti-virus systems, data back-ups, and cybersecurity measures. Typically, this model costs less per device but can be pricy overall compared to other models.
  • Users Per Month model is based on the number of users you need your managed IT company to service each month. This model’s managed IT service rate includes all the user’s endpoints, making it cost-effective if your employees have a broad IT footprint.
  • A tiered pricing method: Silver, Gold and Platinum categories, for example. The higher the price you pay for this model caters for access to more IT professionals and/or services, such as on-site support and disaster recovery.  
  • The flat fees per month model (for unlimited support) could cost less if you’re only seeking limited assistance from time to time. It is a straightforward way to budget your IT spending. You know exactly how much you will spend on it at all times.
  • The block pricing/retainer model lets you pay for as long or short blocks of service that suit your needs. But be aware, this does mean having higher upfront costs before seeing any return from investments.

NEVER accept a break/fix model! What this model caters for is IT calls logged when a problem arises. It will stunt your business growth. Your IT costs could and will likely shoot through the roof because you’ll pay a managed IT services hourly rate, which is almost always higher than other pricing models. 

To end, IT services are essential to any business, no matter how simple or complex the environment may be; however, it can be difficult for the average company to have an accurate ROI calculator on managed IT.

When managing IT costs, companies can unlock cost-savings that range from 1%-24% with managed services according to a survey by CompTIA, 33% of companies saved 25-49%, and 13% more than 50%.

Prophecy Networks is here to help you experience growth without stressing over continual IT issues. Contact us today. We are here to help you!