What You Need to Know About Managed IT Pricing

Making sense of managed IT services pricing can be a difficult task for many small businesses. The often steep price range of managed IT services, coupled with inconsistent pricing structures, can leave business owners feeling both confused and financially stressed.

“Having a clear grasp of managed IT pricing is crucial for maintaining long-term flexibility and business growth,” explains Daren Boozer, CEO of NCC Data. “With this knowledge, you’ll be able to make well-informed decisions when choosing the best managed services provider for your business, with the hopes of securing a high return on investment.”

According to the 2024 IT Industry Outlook from Auvik, the unpredictable nature of managed IT service costs remains a significant challenge for today’s businesses, with 57% of IT leaders considering it as a top concern.

With 37% of IT operations outsourced and 13.6% of IT budgets allocated for outsourcing, determining how much managed IT services cost can feel like solving a complex puzzle, as many factors come into play.

Understanding exactly what you’re paying for – and why – has a direct impact on your IT budgeting. Being aware of the varying managed IT services rates is key to planning your budget effectively and achieving your long-term business objectives.

In this article, we’ll explore the different service pricing models, reveal hidden additional costs, and show you how to use a managed IT services ROI calculator to assess the value of your investment.

Gaining Insight into Managed IT Pricing Models

When evaluating the various managed IT services pricing structures, it’s important to understand the different models available before you proceed. Here is a rundown of the most common ones.

1. Break-Fix vs. Managed Services

In the break-fix model, you pay for individual service calls, while managed services offer ongoing support for a predictable flat fee each month.

2. Flat Fee vs. Tiered Pricing

A flat fee model ensures a consistent monthly fee, while tiered pricing varies based on the level of services you choose.

Factors that Affect Managed IT Pricing

There are several factors that play an important role in shaping your managed IT costs, including:

1. Service Level Agreement (SLA)

The quality of support and response times specified in your SLA can have a major impact on managed IT service rates.

2. Number of Users and Devices

The number of users and devices being supported will influence device prices and overall managed IT costs.

3. Specialized IT Services

Additional offerings, such as cybersecurity or cloud management, can increase the amount shown on your managed IT services price list.

Exploring the Different Managed IT Services Pricing Models

Now that you’re familiar with the core pricing models, let’s look at some common types of service packages available:

1. Tiered Pricing

This type of pricing bundles service plans that become more comprehensive—and pricier—as you move up the tiers.

2. Per-User

A pricing structure based on a flat fee per user per month.

3. Per-Device

Your monthly fee is determined by the number of devices managed under this model.

4. À la Carte

A flexible option that lets you customize service packages to fit your business’s specific IT needs.

5. Monitoring Only

Prices vary depending on the level of service, usually covering network monitoring, helpdesk support, and alerts.

6. ‘All You Can Eat’ (Unlimited)

This option is ideal for larger companies and features an all-inclusive package that offers unlimited IT support, both on-site and through remote support.

 

 

Revealing the Additional Costs of Managed IT Services

Although many managed services provider (MSP) options promote all-inclusive service packages, there are several hidden additional fees you need to be aware of:

• Onboarding Fee: The setup process for your managed services can come with significant costs, which can vary depending on the provider.
• Out-of-Scope Services: Any services outside of your plan can lead to unexpected additional costs.
• Compliance Fees: Businesses in highly regulated industries may face extra charges to ensure they meet specific compliance standards.

Important Factors Influencing Managed IT Services Pricing

Knowing what drives managed IT services rates is crucial to creating an accurate budget. Having a detailed pricing structure and understanding your business’s IT needs will make predicting your managed IT service cost easier.

Another key consideration is the global IT expenditure, which reached roughly $4.7 trillion in 2023. Furthermore, a SkyQuest Technology Consulting study showed that at least 60% of businesses will rely on managed services by 2025.

As more companies discover the many conveniences of partnering with an MSP, this rising demand is likely to affect managed IT services pricing.

More articles you might like: The Forecast Calls for Cloud Migration What Is Needed for Organizations to Stay Safe? 11 Reasons Texas Businesses Use Managed IT Services

How to Calculate the ROI of Your Managed IT Services

Why Calculating Your ROI Matters

Choosing managed IT services can offer considerable savings over time. However, to grasp the full financial impact, it’s vital to calculate your return on investment (ROI). This step will help determine whether the value justifies the managed IT costs.

Leveraging a Managed IT Services ROI Calculator

A managed IT services ROI calculator is an excellent tool for estimating your potential savings. These calculators take into account reduced downtime, enhanced productivity, and avoided expenses.

For instance, if your business cuts downtime by 25% with managed IT services, an ROI calculation will show how much you save in costs and productivity improvements.

The Real Benefits of Accurate Cost Prediction

Businesses that forecast their IT expenses accurately often achieve a positive ROI. Take, for example, a mid-sized company that opted for managed IT services with a transparent price list, ultimately reducing overall IT expenses by 30% in one year.

How Much Does Managed IT Services Cost?

A Closer Look at Average Pricing

Figuring out how much managed IT services cost can be tricky due to varying service pricing models. Below are some general averages to help clarify things:

• Per-User or Per-Device Pricing: Typically ranges from $150 to $400 per user per month or device per month.

• Pricing for Different Service Levels: Basic support might start at $50 per user per month, while higher-tier services with advanced security could run up to $200 per user per month.

What Does a Managed IT Services Price List Include?

When discussing potential partnerships with MSPs, they will likely provide a detailed managed IT services price list. A standard list typically features the following:

• Service Descriptions: A clear outline of all the services included
• Tiered Pricing: Multiple service plans organized by complexity and cost
• Supplemental Costs: Potential additional fees for services not included in the basic package

Managed IT Pricing Models: A Complete Breakdown

Pricing Model	Description	Typical Cost Range	Best For
Flat Fee	Fixed monthly cost for a defined set of services.	$150 – $400 per user/device per month.	Businesses seeking predictable expenses.
Tiered Pricing	Service packages with increasing costs and complexity at higher tiers.	$50 – $200 per user per month.	Businesses that need flexible service options.
Per-User Pricing	Cost determined by the number of users.	$150 – $300 per user per month.	Companies with a consistent headcount.
Per-Device Pricing	Cost based on the number of devices managed.	$100 – $400 per device per month.	Businesses with a large number of devices.
À La Carte	Customizable service packages, selected based on specific business needs.	Varies based on services selected.	Companies with unique IT requirements
All-Inclusive (Unlimited)	Covers all IT needs, including on-site and remote support, for one fixed fee.	$300 – $500 per user/device per month.	Larger organizations needing comprehensive IT support

Simplify IT Management with NCC Data

Successful IT management begins with the right technology partner. Luckily, there’s a cost-effective solution that provides top-tier managed IT services designed to align with your budget.

NCC Data is a trusted managed services provider armed with the expertise to manage your IT infrastructure, strengthen data security, and proactively protect against emerging threats. Our adaptive service models evolve alongside your business, helping you save an average of 18% on managed IT service costs.

Discover Trusted Managed IT Services Near You: Irving Plano

For more than 15 years, we’ve delivered enterprise-grade IT services at SME-friendly rates, ensuring that small businesses like yours can benefit from enterprise-level support without paying enterprise-level prices.

Contact us today to discover our managed IT services rates and explore the best pricing structure for your needs. We’re here to help you make informed decisions about your IT investments.