The Complete Small Business Managed IT Pricing Guide

Managed services are becoming increasingly popular among businesses of all sizes, as they provide a cost-effective way to outsource IT infrastructure management and support – with over 92% of G2000 companies leveraging the benefits of IT services today. 

But how much do managed IT services cost? 

Managed IT pricing can vary significantly depending on various factors, including:

  • Pricing structure
  • Level of service offered
  • Business size 
  • Needs of the business

In this blog, we will discuss the different structures for managed IT services pricing as well as providing you with a managed IT services ROI calculator to help you weigh out the possibilities and find the best fit for your business!

Different Managed IT Services Pricing Structures 

The managed IT market is expected to reach 354.8 billion dollars by 2026 – with new service models and pricing structures popping up everyday. 

Managed IT Pricing

Image Credit: Markets and Markets

 Managed IT services pricing structures generally fall into two categories: per-user pricing and per-device pricing. 

  1. Per-user pricing is based on the number of employees or users per month within a business who require IT support. 
  1. Per-device pricing, on the other hand, is based on the number of devices that need to be managed and supported. Some providers may offer a hybrid pricing model that includes both per-user and per-device pricing.
  1. Fixed-fee pricing is where a provider charges a fixed monthly fee or annual fee for a set package of services. The fee is typically based on the number of users or devices being managed, and the services included in the package are predetermined.

What are The Differences in Each Managed IT Pricing Model?

How do these managed IT pricing models compare to one another?

Per-user pricing is generally more common for businesses with a smaller number of employees, while per-device pricing is more common for larger businesses with many devices to manage. 

Fixed fee pricing is charged on a per-month basis for basic IT services such as monitoring and patching, as well as for more comprehensive services such as help desk support and disaster recovery. The goal of fixed fee pricing is to provide businesses with predictable, transparent pricing for their IT services, without unexpected expenses or hidden costs.

All three managed IT services rates models have their advantages and disadvantages, and your organization should consider their specific needs before deciding which structure is right for meeting both your overall budget and business goals (which is where your managed IT services calculator for ROI will come in handy).

There are also other pricing models such as break-fix and a-la-carte pricing if you find you aren’t satisfied with these options. 

Factors That Dictate Managed IT Pricing

There are several factors that dictate managed IT services rates – and they largely depend upon the unique needs of your organization as IT is never a one size fits all solution. 

Depending on your chosen MSP’s managed IT services price list, factors may include:

Level of Service: The level of service offered by the provider is one of the biggest factors that dictate managed IT costs. Basic services such as monitoring and patching will be less expensive than comprehensive services that include proactive maintenance, helpdesk support, and security management.

Complexity of IT Infrastructure: The more complex your business’s IT infrastructure is, the more expensive managed IT services will be. A business with a simple infrastructure, such as a small office with a few laptops and desktops, will pay less than a business with a complex infrastructure, such as a large enterprise with multiple locations, servers, and databases.

Service Level Agreements (SLAs): SLAs in a managed services agreement dictate the level of service that a provider will deliver, as well as the penalties for failing to meet those service levels. Providers who offer more comprehensive SLAs will typically charge more for their services.

Scalability: Companies that need the ability to scale their IT services up or down quickly will pay more for managed IT services. Providers that offer flexible pricing structures that can accommodate changing needs will be more expensive than providers that offer fixed pricing structures.

Geographic Location: The geographic location of your business can also impact managed IT services pricing. Providers in major metropolitan areas will typically charge a higher hourly rate for on-site visits than providers in smaller cities or rural areas.

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Managed IT Services ROI Calculator

Now that we’ve answered the question of how much managed IT services cost, let’s get into the exciting stuff: the return on investment of your managed IT endeavors. 

Before using the managed IT services ROI calculator to establish an accurate number, it is essential to establish a baseline figure for all of your IT processes. Consider factors such as:

  • The number of service tickets received each month
  • The average turnaround time for each ticket
  • The average rate of resolution
  • The severity of the issues

Also, assess the amount of time your IT team spends addressing internal IT issues. Once you have established your baseline price range figure, you can assess the effectiveness of managed IT service providers using a managed IT services pricing calculator. 

Use this managed IT services calculator to determine your ROI: ((money gained – money spent) / money spent) x 100 = ROI.

Get Competitive Managed IT Pricing with CITOC

After having a look at the different managed IT services price lists, it’s evident that managed IT costs are never a one size fits all solution. 

This is why choosing the right managed IT services provider for your business can be a crucial decision. 

CITOC is a reputable provider with over 28 years of experience in the industry prepared to help you leverage the cost savings benefits of managed IT services! Get in touch to learn more about our quality services at competitive rates.