MSP Services

Popular Managed IT Services Pricing Models In Use Today

Hiring managed IT services helps enterprises to save money and resources while ensuring efficiency. It is known to be a great IT solution that allows businesses to outsource the IT functions to experts who are trained to handle all system issues regardless of their complexity.

When outsourcing, it is imperative to know the managed IT services pricing. To help you know the costs of different services, we have listed down below the pricing models for managed services and the factors affecting it.

Biggest Factors Affecting Managed  IT  Services Prices

One of the biggest factors that affect managed IT services prices is the type of services provided and the level of involvement required by the IT experts. Hiring an outsourced IT support team will cost you a bit more compared to simply getting monitoring services. But, you can expect to get more benefits as you’ll have an entire IT department working for you.

Another important consideration for pricing managed IT services is the complexity of your technology infrastructures. The presence of technological devices and systems allows managed services providers to determine how complex your business IT environment is and to a set a price for their service that fits you best. Here are the pricing models for managed IT services:

1: Monitoring-only pricing model

This pricing model is delivered to small and medium-sized businesses (SMBs), as well as midsize and enterprise environments. In this model, the Managed Service Provider (MSP) provides network monitoring and alerting services to the customer’s IT staff.

For small and medium-sized businesses, the services they provide may include patch management, antivirus, and anti-spam updates, disk optimization, and backup monitoring for a flat monthly fee. If there’s any remediation work to be done, there would be an extra charge. Meanwhile, for large enterprises, all alerts are forwarded to the customer’s in-house IT staff while the service provider addresses and performs all incident resolution.

2: Per-device pricing model

The per-device pricing model is simple, that’s why many MSPs opt to use this. In this model, there is a flat fee for each designated device that is supported in a customer environment. In comparison with other managed services pricing models, this approach makes it easy to compute the fees and determine the costs for prospects. It will also be easy to adjust the monthly service fee if ever the customer adds more devices.

3: Per-user pricing model

The per-user pricing model charges a flat fee that is billed to the user per month. This covers the IT support provided across all devices. It is a very straightforward pricing model and perfect for those companies with a tight budget as it allows you to budget for your IT support. Also, it will be easy for you to determine how much is it going to cost you if you take additional services.

4: Tiered pricing model

One of the most popular pricing models among MSPs is tiered. With this model, there are several bundled packages to choose from. The more service the package provides, the higher the costs will be.

For an entry-level price, a “bronze” managed services package may include basic phone and remote support, patch management, and virus and adware removal. “Silver” managed services may be a bit pricier because it includes on-site visits. The “gold” package may include emergency after-hours support as the highest-priced package.

5: Flat-based pricing model

This model is flexible and includes all remote support, on-site support, and lab or bench time for your entire company for a fixed fee per month. Its goal is to help customers budget their IT support costs over a year’s time and to avoid extraordinary billing charges.

6: A la carte pricing model

The a la carte model is the exact opposite of the all-inclusive or bundled, managed services pricing models. Here, an MSP sells separate services that address specific customer needs. A la carte pricing gives customers the flexibility to select and pay for the services they need.

Packaging And Pricing Managed IT Services

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