Managing IT costs can be one of the most challenging aspects for businesses today. Many companies struggle to predict their managed IT services pricing, leading to unexpected expenses and budget overruns.
However, with the right managed IT services provider, businesses can significantly reduce costs. Managed IT services can reduce your recurring in-house costs by up to 40%, and increase efficiency by 50 to 60%! But it’s important to note that the pricing model you choose can also impact your overall IT costs.
| As Ryan Lamberger, Relationship Manager at Enkompas Technology Solutions, says “Understanding managed IT services pricing is crucial to avoid unexpected expenses while maximizing ROI.” |
In this blog, we’ll explore the main factors that affect managed IT costs, as well as how you can estimate and control costs for your business.
Common Managed IT Services Pricing Models
Choosing the right managed IT services rates is essential for optimizing your IT spend and ensuring your business receives the right level of support at the most cost-effective price. The right model can cut costs by up to 25% and boost operational efficiency by 50%. Managed service providers (MSPs) offer various models to fit different needs. Below is a breakdown of the most common pricing options:
1. Per-User Pricing
In the per-user pricing model, businesses are charged a fixed monthly fee for each user who requires access to IT services. This model is commonly used by small to mid-sized businesses with predictable IT support needs. It often includes services such as helpdesk support, network monitoring, software management, and basic cybersecurity.
Example: If your company has 50 employees who need IT support, you will pay a fixed fee for each of those 50 users, making it easy to forecast your IT costs on a monthly basis.
2. Per-Device Pricing
This model is better suited for businesses with many devices to manage, where each device (such as laptops, desktops, tablets, or mobile phones) requires separate IT support. The business pays based on the number of devices the MSP is managing. This model is ideal for companies with employees who use multiple devices or for those with field operations requiring a wide range of technology.
Example: If your company provides laptops, tablets, and smartphones to employees, you’ll pay for each of these devices. This model allows you to scale your costs as the number of devices in use increases.
3. Flat-Rate Pricing
Under flat-rate pricing, businesses pay a fixed monthly fee for a comprehensive range of services. This model is ideal for businesses that require ongoing IT support and prefer predictable, consistent costs. Services typically included under flat-rate pricing are network monitoring, patch management, cybersecurity, data backup, and helpdesk support.
Example: Your business pays a single monthly fee that covers all aspects of IT management—such as network monitoring, software updates, and security management—ensuring predictable budgeting.
4. Tiered Pricing
Tiered pricing divides services into different levels or packages, offering businesses the flexibility to choose from basic to premium service options. Each tier offers a different set of features, with higher tiers providing more comprehensive services, such as advanced cybersecurity, priority response times, and 24/7 support.
Example: A basic plan may include essential services like network monitoring and helpdesk support, while a premium plan offers additional features such as full-scale cybersecurity protection, 24/7 system monitoring, and on-demand IT consulting.
5. Hourly Billing
Some MSPs offer hourly billing for specific IT projects or on-demand support. This model is useful for businesses that do not require ongoing managed services but need occasional IT support, consulting, or troubleshooting. The business is billed for the number of hours the service provider works on a project.
Example: If your business needs a network upgrade or a specific IT project completed, you pay for the number of hours the provider works on that project.
6. Project-Based Pricing
In the project-based pricing model, businesses pay a fixed fee for specific IT projects, such as infrastructure setup, system migrations, or software implementation. This model is ideal for companies that need help with one-time IT projects rather than continuous IT services.
Example: If your business is migrating to a new cloud-based system, you would engage the MSP to complete the migration for a fixed project cost, instead of paying for ongoing monthly services.
7. À La Carte Pricing
The à la carte pricing model is highly flexible, allowing businesses to choose and pay only for the individual IT services they need. Rather than purchasing a full-service package, you select specific services such as backup, cybersecurity, cloud management, or helpdesk support. This model is ideal for businesses with specific, customized IT needs.
Example: If your company only needs cybersecurity and backup services, you can select and pay only for those two services, without committing to additional services like network monitoring or full IT management.
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Learn MoreWhat Affects Managed IT Services Pricing?
While the pricing model you choose is one of the main factors, several other elements influence managed IT services pricing. Understanding these can help you make a more informed decision about your IT needs and budget:
- Scope of Services: The more services you require, the higher the cost. Services such as 24/7 monitoring, cybersecurity, and data backup will increase pricing compared to more basic offerings.
- Business Size and Complexity: Larger businesses or those with complex IT infrastructures often incur higher costs due to the increased number of users, devices, and required services.
- Industry-Specific Needs: Certain industries, such as healthcare, finance, or law, have specific regulatory requirements. Compliance services often come at an added cost, as MSPs must adhere to strict industry standards.
- Level of Support: The level of service needed, such as basic support during business hours or 24/7 emergency support, also affects pricing. Premium support plans with faster response times typically come at a higher price.
- Service Level Agreements (SLAs): The specifics of your SLA, such as guaranteed uptime, quick response times, and custom service offerings, can directly influence the cost of your managed IT services.
Benefits of Choosing the Right Managed IT Services Pricing Model
| Benefit | How It Helps Your Business |
| Predictable IT Costs | Ensures consistent and manageable IT expenses, making budgeting easier. |
| Scalability as You Grow | Allows your IT services to grow with your business, avoiding unnecessary costs. |
| Customized Support | Tailors IT services to your specific needs, so you only pay for what you need. |
| Improved Cost Efficiency | Optimizes your IT budget by aligning services with your actual business requirements. |
| Better ROI on IT Investment | Maximizes returns by boosting productivity, reducing downtime, and enhancing overall business performance. |
| Flexible Service Adjustments | Adapts to changing business needs, providing the right IT support at the right time. |
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Getting the Best Value from Managed IT Services
Understanding managed IT costs is essential for businesses looking to make the most of their IT budget. By selecting the right pricing model and considering factors like the scope of services, the size of your business, and any industry-specific needs, you can ensure your IT investment delivers the best value.
At Enkompas Technology Solutions, we offer flexible pricing and customized IT solutions tailored to fit your unique requirements. Get in touch with us today to find out how we can help you optimize your IT costs and schedule a consultation.
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