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How Much Does Managed IT Services Cost?

How Much Does Managed IT Services Cost?
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Understanding the cost of managed IT services is crucial to get the best value for money. There are numerous benefits of MSPs for businesses of all sizes, making this a worthwhile investment for your company. Nevertheless, you need a rough estimate of the costs so you can compare providers and see who’s offering the best deal. 

Consequently, what goes into deciding the cost of managed IT services, and how are they usually charged?

MSPs Charge Per Person, Per Month

A lot of businesses don’t realize that MSPs charge on a user/person basis. Effectively, you are billed each month depending on how many people are using the technology in your business. 

Let’s say you have a small business where only five employees are accessing your network and all the technologies available. You will be charged per five people for managed IT services, getting your bill every month. 

The Average Cost Per Person

Bearing the above in mind, what is the average cost of managed IT services per person, per month? Well, it’s largely impossible to provide a totally accurate figure as many things impact the pricing. 

For starters, the extent of the service will play a considerable role. Some businesses only require partially managed IT services, while others will need full managed IT services. Naturally, the partial option will be cheaper as it means you’re only paying for specific services, while the fully managed approach gives you 24/7 support across the board. 

Already, it’s hard to figure an average cost when the services can be different. Furthermore, there are different types of MSPs on the market, with Mature MSPs being the pick of the bunch. These are the companies that have been in business for years and are solely dedicated to providing managed IT services. 

Alongside this, you also have the following:

  • Trunk Slammers – usually very small organizations based in the cloud that give the illusion of a mature MSP but lack experience and manpower. 
  • Value MSPs – still usually smaller than mature MSPs and typically offer a much more scaled-down service.
  • Bolt-On MSPs – big companies that provide something else as the main service but have started adding managed IT services to increase revenue.

All of these different MSPs impact the average price as the smaller and less experienced organizations can offer lower rates. This means the average cost per person can be anywhere between $75 – $300. It also means that it’s hard to compare prices right away as most MSPs guard their pricing. 

Why do MSPs Guard Pricing?

Put simply, they know that the other types of MSPs can offer lower prices, and they also know that the average consumer won’t understand the difference between the level of service. 

Therefore, displaying their prices would make it hard to find clients as people would automatically go for the cheaper options. In reality, a smarter choice is to invest more in a mature MSP for a more experienced service provider with better services. 

How Should You Choose Your MSP?

The golden rule is to consult with MSPs and submit quote requests if they are guarding their prices. This gives you a clear estimate of how much you’ll be charged, making it far easier to compare rates. Also, take into account the company’s experience to be sure you’re getting the best MSP for your business. 

In conclusion, the cost of managed IT services can vary based on numerous factors but is usually given per person, per month. Ideally, you should opt for mature MSPs to get the best services, requesting quotes to compare prices and find the best value for money.