Today’s IT systems can be complex, which is why more businesses are choosing managed services providers (MSPs). Outsourcing IT can be a great choice as it offers value, flexibility, scalability, and can save money too. But are you really getting what you expected?
“Understanding pricing is not just about cost-saving but about aligning IT operations with business goals. The right pricing model can be a game-changer in how efficiently your business operates and evolves as it grows,” remarks Tom Baum, CEO of DatCom.
In this guide, we’ll break down managed IT services pricing, explain the different pricing models, and share tips on how to make the most of your IT services. Plus, there’s an interactive calculator you can use to understand how managed IT pricing works.
Explaining the 5 Managed IT Pricing Models
| Pricing Model | Pros | Cons | Ideal for |
| Flat Fee | Predictable monthly costs, easy budgeting | May not cover extra services or issues | SMBs with standard IT needs |
| Per-Device | Clear pricing based on device count | Can get expensive as devices add up | Businesses with fewer devices |
| Per-User | Simple pricing per user, easy to scale | Can become costly with many users | Growing companies |
| Tiered | More services as you go up in tier | Higher tiers can be quite expensive | Various sizes, tailored services |
| A La Carte | Pay for only needed services | Can lack full-service coverage | Companies with specific needs |
1. Flat-Rate or Fixed Fee Pricing
With a flat-rate pricing model, budgeting becomes a breeze as you get a fixed monthly fee. However, it’s crucial to examine the services included in the package to ensure they meet your distinct needs.
Flat-rate pricing is an excellent choice if you prefer a predictable and consistent monthly cost. Unlike the fluctuating hourly rates seen in break/fix services, this model removes any uncertainty and empowers you to plan your budget for the forthcoming period with assurance.
2. Per-Device Pricing
In the per-device pricing model, costs are determined by the number of devices under management.
For organizations employing a diverse range of devices, this model offers a clear insight into expected managed IT costs. If your needs are centered around minimal technical support for a handful of devices, this pricing model can be the one that delivers the most value.
3. Per-User Pricing
Choosing a per-user (per month) pricing model can be a smart move, especially for organizations with a fluctuating number of users, or large number of devices per user.
In this setup, charges are based on the number of users, providing a flexible approach to managing IT costs. You are billed based on the user count each month, instead of per device.
4. Tiered Pricing
Tiered pricing offers a flexible choice, letting you select a service level aligned with your business requirements.
Generally, this model categorizes services into basic, intermediate, and advanced levels, each with a unique set of features and services. It’s important to ensure the tier you choose encompasses the services you require, like remote support, vendor management, or an overnight helpdesk.
5. A La Carte
Creating a personalized managed IT services price list allows you to pick the services that match up well with what your business does day-to-day.
This pick-and-choose method makes things clear and helps you spend your budget more wisely. By selecting only the services you need, you can better match your IT support with your business needs and budget.
5 Factors That Impact Managed IT Costs (Plus How to Maximize Value)
Now that you have a rough idea of the costs involved in managed IT services, let’s explore the factors that will influence your final bill.
Understanding these aspects will assist you in identifying the most suitable pricing model for your business, selecting the right services, and making sure you aren’t saddled with services you don’t require.
- Service Scope: The variety and depth of services needed significantly impact cost. Basic monitoring is less costly compared to comprehensive management, which encompasses cybersecurity, backup, and disaster recovery.
- Size and Complexity of Business: A startup with a few devices will have differing needs and costs when compared to a large corporation with multiple branches and hundreds of devices.
- Required Expertise Level: Tackling advanced IT challenges like setting up complex networks or ensuring compliance in regulated sectors may require higher expertise and, thus, higher costs.
- Hardware and Software: The kinds of devices, systems, and software utilized by your business can affect costs. Legacy systems might need specialized knowledge, while newer technologies may require frequent updates.
- Contract Duration and Terms: Lengthier contracts might come with discounted rates, but ensuring flexibility for evolving business needs is crucial.
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Here’s How You Can Get the Most Value From Your IT Services
- Evaluate Your Needs: Before entering any agreement, gain a clear insight into your IT needs. This helps prevent overpaying for services you don’t require.
- Explore Providers: IT service providers vary in quality. Seek ones with a history of excellence, clear pricing, and positive client feedback.
- Negotiate: A number of providers are open to discussion, particularly if a long-term partnership is on the table. Don’t shy away from negotiating terms that benefit your business.
- Regularly Assess Services: As your business changes, your IT needs will too. Make it a habit to review the services you’re availing to ensure they match your current needs.
Take Charge of Your IT and Your Budget
Making sure you’re on the right managed IT services plans will affect not just your bottom line, but your productivity, too. The right IT services can ensure you receive the support you need, without getting in the way of your cash flow.
At DatCom, delivering value is at the core of our business. It’s why we’ve pioneered industry-leading technologies like EfficientMe, and why security is at the heart of our process.
Book a free discovery call to find out how we can deliver the value you expect and support your business.
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