More companies are turning to managed IT services to ensure their technology runs efficiently. However, despite the growing demand for these services, businesses struggle with the uncertainty around managed IT services pricing.
According to Gartner, downtime costs businesses an average of $5,600 per minute. This highlights the need for robust IT solutions that keep your operations running smoothly.
Investing in managed IT services is a proactive approach to avoiding costly system failures, but you also need to know how much these services will cost.
“Managed IT services provide consistent support, but how much they cost depends on the specific needs of your business and the scope of services.” – Eric Hullibarger, President, AhelioTech
In this blog, we’ll break down the key factors that drive managed IT services pricing, provide insight into pricing models, and explain how you can get the best value for your money.
How Much Do Managed IT Services Cost?
In short, how much managed IT services cost depends on several factors, but you can typically expect to see pricing in one of two models: per-user or per-device.
On average, small businesses can expect to pay between $500 to $1000 per user per month for managed IT services. However, for larger enterprises or businesses with more complex needs, this cost can rise significantly.
Factors That Influence Managed IT Services Pricing
When considering managed IT services pricing, you need to understand that no two companies will have the same needs, and therefore, pricing will vary. Plus, with over 40,000 MSPs on the market, various providers are bound to have various pricing models.
Several key factors can influence the managed IT services rates you might encounter:
- Scope of Services: Managed IT services come in various packages ranging from basic support to full IT infrastructure management. The more comprehensive the package, the higher the cost.
- Company Size: Larger businesses with more users and systems typically face higher costs due to the increased complexity of managing their IT environment.
- Service Level Agreement (SLA): SLAs define the level of service you’ll receive, including response times and support availability. More robust SLAs often come with higher costs.
- Security Needs: Advanced cybersecurity services, such as real-time threat detection and data protection, add to the overall cost.
- Industry Requirements: Businesses in highly regulated industries (e.g., healthcare, finance) may need specialized compliance services, impacting the overall pricing.
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For small businesses, the pricing tends to be lower, with more standardized services. Larger businesses, on the other hand, often need a more tailored solution with enhanced security, compliance, and scalability, which can lead to higher prices.
Pricing Models
Managed IT services can be priced in different ways. Some popular models include:
- Per User: Costs are based on the number of users, with support covering multiple devices per user.
- Per Device: Charges a set rate per device; the more devices, the higher the monthly cost.
- Tiered Pricing: Structured into tiers offering different service levels, allowing for scalability as needs grow.
- Flat-Rate Pricing: Single monthly fee covering all services, offering cost predictability.
- A La Carte Pricing: Pay only for specific services selected; customizable but can add up with more services.
- Pay-As-You-Go Pricing: Charges based on actual IT usage; ideal for fluctuating or seasonal needs.
To accurately understand how much you can expect to pay, it’s useful to consult a managed IT services calculator or request a managed IT services price list from providers.
Using a Managed IT Services ROI Calculator
Understanding the return on investment (ROI) for managed IT services is crucial in determining whether the price aligns with the value you’re getting.
A managed IT services ROI calculator can help you assess factors like downtime costs, productivity improvements, and security-related savings.
Example of ROI Calculation
Let’s assume your business loses $1,000 per hour due to system downtime. If a managed IT provider can ensure a 99.9% uptime guarantee, that could result in significant savings in avoided downtime.
You can use ROI calculators to compare potential savings against the cost of services, ensuring that the investment pays off in the long run.
Common Managed IT Costs to Watch Out For
When reviewing managed IT services pricing, be sure to look for hidden costs. Some managed IT providers may charge additional fees for:
- Setup and onboarding
- Specialized software or add-ons
- Overage fees for excessive support requests
Make sure to carefully read the fine print in your contract to avoid unexpected costs down the line.
How to Evaluate Managed IT Services Pricing Models
This table helps you to understand the pros and cons of different managed IT services pricing models. With this, you are able to decide which is best for your business needs.
| Pricing Model    | Key Considerations | Pros | Cons |
| Per Device Pricing | Consider the number of devices you have and whether this model can scale with your business. | Simple to understand and easy to scale per device. | Can become expensive as the number of devices increases. |
| Per User Pricing | Think about how many devices each user manages and if employees frequently switch between multiple devices. | Covers all devices per user, no need to track each device. | Might not work well if employees share devices. |
| Tiered Pricing | Compare the features and services included at each level to ensure you’re not paying for services you don’t need. | Flexible and scalable based on company growth. | Higher tiers can be costly for small businesses. |
| Flat-Rate Pricing | Assess whether the flat fee covers all your current and future IT needs without unexpected add-on costs for extra services. | Predictable budgeting and no surprise costs. | May include services you don’t need. |
| A La Carte Pricing | Evaluate if paying for only the services you need gives you the best value, or if bundling services would be more cost-effective long-term. | Highly customizable to specific needs. | Costs can add up if you need multiple services. |
| Pay-As-You-Go Pricing | Determine if your IT needs fluctuate enough to justify paying based on usage, or if a fixed plan would offer better long-term value. | Only pay for what you use, great for flexibility. | Unpredictable costs if usage spikes unexpectedly. |
Maximize Your IT Costs with Tailored Managed Services
Understanding managed IT services pricing is essential for making an informed decision about the IT solutions your business needs.
While costs can vary based on company size, security requirements, and service levels, investing in managed IT services can ultimately save your business money by minimizing downtime, improving productivity, and enhancing security.
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If you want to ensure you’re getting the best value for your money, AhelioTech offers tailored IT services that align with your business needs.
Contact us today to schedule a consultation and learn how our managed IT services can help you build a more reliable, secure, and efficient IT infrastructure.
