We understand that Managed Services pricing guides can seem very complex and often far from being opaque. Our goal is to empower you with an honest and reliable guide to Managed IT Services pricing to help you understand and budget.
It seems that the days of calling up an IT support provider whenever something goes wrong with a computer or network related services are fast disappearing. As IT services have become more complex, businesses continue to discover they now totally rely on their IT systems.
IT support providers have also had to implement robust solutions so that enough techs are always available to ensure service level agreements are met. They also need to ensure those techs have received the right training to provide effective support.
This has come at a cost requiring the business model for IT support companies to adapt into a model referred as a monthly recurring revenue model. This new fully managed business model provides for a stable ongoing income stream for IT support companies. This gives them the confidence to “Staff up” and implement systems to cater for the growth needs of modern small businesses and maintain service levels.
Providers offering “break fix” services are either switching to monthly recurring revenue models or going out of business.
The new model is referred to as Managed IT Services which basically means that your service provider actively manages your IT services and enjoys a monthly revenue. The purpose is to minimise downtime and ensure high levels of productivity, rather than sitting back and waiting for something to break.
Managed IT Services Providers typically provide four types of products and it support services:
This guide to Managed IT Services cost will focus on understanding Managed Services. The other elements of an IT support provider’s pricing are easier to understand given the historical context.
Managed Services are divided into several categories. Service providers may offer bundles or individual services to meet a business’s needs based on the services managed.
There are an infinite number of variations within the industry on how services hours are charged and delivered. Check thoroughly with your provider so you understand what you’re entitled to. Milnsbridge offers all three price pricing options depending on the chosen plan. This is to ensure you’re able to match your requirements with your budget, and not pay for unnecessary support solutions.
The degree of variation between providers in how they utilise their RMM tool is nearly impossible to determine beforehand. Every service provider will claim to use the tool to ensure the highest uptime and productivity for your employees. However, it takes a great deal of skill and experience to effectively use an RMM tool to its full capacity.
This is particularly true of the remote maintenance automation side of the tool. Automation is responsible primarily for automatically fixing problems as they are detected. This is often without you even realising that something broke which was subsequently automatically fixed. MSPs offer per-device pricing options depending on solutions design.
Something to keep in mind is a provider who is not getting the most out of their RMM will typically compensate with higher monthly charges per user per month. This is because they may be providing more user support than is required which ultimately means more potential computer problems for you.
A guide to Managed IT Services pricing wouldn’t be complete without discussing Cloud Backups. Always a core service provided by an MSP is some form of backup solution to ensure your data is protected. Historically this was backup to tape/disk solution with expensive software licensing. Nearly all IT support providers have now transitioned to a “Managed Backup” solution. Server backups are stored most likely in the cloud and charged on a recurring price basis.
MSP pricing for cloud backups are usually charged separately each month for clients.Prices are typically based on the number/type of servers, the volume of data, length of retention. This may vary when options such as disaster recovery or high availability are included. There are a myriad of solutions each with their own merits, but you should look for a provider that has capability for the following:
IT providers have provided cyber security options in some form for decades as Antivirus (AV) Software. Historically this belonged in the annuity category with upfront services pricing and ongoing yearly license renewals. Nearly all Managed Service Providers have now transitioned to offering AV software on a Managed Services (Monthly Fee) basis.
The cost is typically either added on to the monthly fees or is included as a core component of their Managed Services solutions. Given the growing security concerns around Cybersecurity your MSP may now offer an extended suite of Managed Cyber Security products. But you should check what is included and what comes at an extra cost.
One of the key components which separates Managed Services pricing from Adhoc Break-Fix support is the provision of vCIO services. It ensures your entire IT systems are regularly analysed with advice provided on how to better utilise and manage your IT infrastructure. Hiring an MSP eliminates the need for hiring internal IT staff. It also alleviates the need to hire a Chief Information Officer, providing significant savings to your business.
Many Managed Services plans offer Virtual CIO services. However, some providers may charge vCIO separately as consultancy. For the purposes of this guide to Managed IT Services pricing, here are some of the typical vCIO components an MSP will offer:
This guide to Managed IT Services pricing is a work in progress, come back regularly and check for updates and new Managed Services Inclusions.
To discuss any aspect of this price guide to Managed IT Services pricing please contact us for more information, simply call 1300 300 293 to chat to one of our friendly MSP services team.
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