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How Much Does A Managed IT Services Provider Cost?

Managed services 12/05/2020 - 07:37 by Swami Nathan

How Much Should Managed IT Services Provider Pricing?

The price of managed IT services can also be hard to pin down, despite being one of the most significant factors in deciding between one service or another. There's a lot you need to know about it while investigating a potential service. What it entails, how successful it has been found by other clients, how it matches up against the competition, etc.
But there's one piece of knowledge that's often as, if not more, relevant than the rest of it.

So, What Does Managed IT Services Cost?

You can estimate that your company will pay anywhere from $50 per user to $300 per user if you are looking for a clear response to the question of what the managed IT costs are. At first glance, the selection is wide and maybe not useful, which is why we urge you to read on and finally talk to a reliable service provider like Teceze to get a quote based on your particular circumstance and needs. Let's now dig further into how priced managed IT services are so that you can get a better understanding of what your costs could be.

How are you going to pay for Managed Services?

So, we've figured out what does managed IT services cost, but how do we charge them? How are you paying them?
Managed IT Services are charged most of the time on a subscription basis, making it an operating expense rather than a capital expense. For many businesses, this is preferable because it offers predictable IT spending without producing hidden costs and with minimal initial outlay.
Depending on the services you use and the number of users, the cost of your subscription will vary. The higher the service, support, or user level, the greater the cost. However, the good thing about Managed IT Services is that you don't spend too much or pay for services that you don't use on a per-user basis.
For the services received, a longer contract can often mean a lower price, but any prospective MSP should be able to give you a quote based on the services received and the number of users.
There are three pricing models for Managed Services in general.
•    Per user
•    Per device
•    Tiered

Per device - Per device is when you are charged for each device that is supported, as the name suggests. A per-device charging model is used by many MSPs because it's fairly simple. It is easy to quote, which is useful for both the supplier and the client. As devices are added or removed, it's also flexible and easy to modify.

Per-user - The per-user cost model is similar to per device, but based on the number of users, a flat fee is charged at the end of the month. This includes support for all devices used by each user, which could mean that for one person, a smartphone, laptop, and office PC are all covered.

Tiered - Tiered pricing provides various bundled packages, with prices increasing as a more complete service is provided through the levels.

Available Options for Managed IT Service

Services for IT management are further broken down into levels of service. The names used by various providers may differ, but you can expect services to fall into three general levels:

Basic IT Services – lowest price, but high variable costs

IT management services at the entry level are offered at the lowest recurring price. They involve your systems' basic monitoring and can cost about $50-100 a month. The services that you get at this level are similar to having your server tracked by a security team. The company pays close attention to what is happening and allows you to know if anything seems off.

There are obvious advantages to having this kind of security and oversight, but if you need any additional help, the advantages are limited, and the cost can go up quickly. If you do not have an IT team to deal with things when they go wrong, this is particularly true. If you need to do anything beyond monitoring and notifying the IT service provider, depending on the complexity of the problem that needs to be solved, you can expect to pay between $50 and $300 per hour for assistance.

A block of time at a discounted rate may be purchased from the service provider. If for a block of time, you can negotiate a contract, you can have the IT provider work on problems until that block of time is used up. Of course, you will have to decide which problems the block is worth using for and which may have to wait until next month when you have another block of time or pay for a full-priced solution right now when you need it.

Mid-range IT Services, are considered to be the best value for most companies

As with so many things, in the long run, the lowest-priced option is often more costly. IT services are no different. A mid-range managed IT service is more costly upfront but can often save money over time as your service provider can help you avoid problems before they become important and read when they are easiest to solve immediately to resolve problems.

You're hiring more than just a monitoring service once you get into mid-range services. In most, if not all, cases, you hire a team to act as your IT provider. When anything of concern arises, the team will certainly keep track of the processes and alert you. But without the need for you to make irrational choices, such as if you want to pay more for the assistance, they will also take the initiative to solve those issues. At a pace that requires them to go into action now rather than later, you have already recruited the team.

In general, mid-range IT management services are priced based on the number of users you have or the number of devices for which you need support.

Per-user, typical charges range from $50-$200 per user.

For services per device, pricing will be based on the device type. You could pay between $80-500 per server for the servers. Workstations per station may cost between $30-120. It may cost between $20-100 for firewalls, while switches may cost between $8-50 per switch.

High-end IT Services which is needed only in certain circumstances

For certain types of companies, specifically those that need fully hosted or cloud systems, the high-end of managed IT services is only required. If the IT service provider needs to provide the majority of your business or your entire infrastructure, then the cost of providing that infrastructure will be included in your fee. For the enhanced cost of high-end pricing, you get the full range of services, including the use of the system and the support services you need with that system, as well as all the services offered in mid-range plans. Depending on the complexity of what is provided, a fully hosted service may cost $200 or more per user per month.

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How does Teceze charge for Managed IT Services?

The cost of our Managed IT Services, like any provider, depends on what elements of your IT you would like us to handle.

Our Desktop as a Service comes in three distinct packages per user/month. Each package includes a different service level that is reflected in the price. Desktop as a Service provides you with a full-featured Windows 10 desktop, simply by logging into your unique account, on any laptop, anywhere.

Your exact specifications depend on other costs. We can provide managed networks, security, IT support, and solutions for identity and access management, with costs depending on the number of users you have and the level of service you need.

The price of managed IT services can also be hard to pin down, despite being one of the most significant factors in deciding between one service or another.