Let’s Talk About the Elephant in the Room: Managed IT Services Pricing
Yes, we know. Before you even consider a managed service provider (MSP) you want to know how much it’s going to cost. We’ll tell you as simply as we can, but also realize it’s not like investing your money in a cell phone plan or buying a car. Don’t let the sticker price scare you off. Consider the value for the cost.
Standard managed IT services pricing for 2021 is around $125 per user per month. If you need advanced security, all-in project work and 24/7 response, you increase the costs to the $250+ per user per month range.
What Managed IT Services Pricing Is Paying For
We’ve covered the benefits of using an MSP like SWAT Systems extensively in previous posts. In case you missed them, here are some questions we’ve recently addressed. Check them out (or send these resources to your company’s decision makers):
- What does managed support include?
- Is it hard to switch managed service providers?
- When to consider outsourcing your IT vs. hiring in-house
- Are there hidden costs of in-house IT?
- What to expect in the first 45 days with your MSP
- Should you hire an MSP or cyber security company to protect your business?
How Price Varies by Your Business Need
MSPs offer different levels of service depending on the number of users, locations and devices (such as servers, switches and endpoints). Then it comes down to the types of services you need. Will you need:
- Help desk only
- Project work
- Net admin
- Senior engineers
- Network architect
- Virtual CIO services (VCIO)
What kind of response times and service-level guarantees do you need?
- 2-hour response
- 27/7 coverage
- After hours only coverage
- Coverage for a set time period (e.g., 6 a.m. to 8 p.m.).
These are just examples. The goal of an MSP is to normalize IT cost, stay proactive and reduce risk of downtime while increasing efficiency, maximizing security and gaining positive output from your systems and users. Each business is unique, so agreements will vary depending on the needs of the business and the technology stack the MSP will support (e.g., all cloud services or a hybrid approach with on-premise servers and public cloud services like Microsoft 365).
It is important to get into the details about what is and is not included in the agreement with an MSP. The gray areas will be emergency hours, project work, on site vs. remote, network design, and who is defined as a user.
Real World Example: SWAT Systems Packages
SWAT has designed its packages around simplicity and being set up for both growth and contraction of your business. Business can be seasonal and fluid so having an agreement that can fluctuate is key. Just because you have 50 computers, and 30 employees does not mean you should be paying for support of equipment that gets used once a month.
Example A: Startup with little IT needs: $850 a month.
A small startup with little IT needs begins the journey on a starter package, which we call Supplemental Managed Services This will include some proactive support time, network agents on key equipment and some discounted hours to use for reactive support.
Example B: Small business with eight power users with a domain server: $899 a month.
- A block of 4hrs of support time/month
- Up to eight endpoint agents (software that work as a managed server utility to patch, automate and provide the support team with secure access to your systems)
- 20% discount support hours needed above the 4 included
- Hours expire at the end of the month
Example C: Full blown 50 user company that does not want to have an IT department: $12,500 per month.
SWAT is asked to:
- Manage business technology 24/7
- Handle IT security and disaster recovery
- Be on point for the help desk and the end users
- Have engineers ready for onsite support and escalation when things get bumpy or need support in a white glove service approach (e.g., for C-Level users).
- The client’s data is stored at the MSP data center and hot spare equipment is on standby in case of one-to-many failure.
- Regulatory and compliance needs are a must.
- All-in project work for the year, including a cloud migration; office move and security audit and some other minor upgrades to the IT infrastructure.
What should be included in Managed IT Services?
The SWAT Systems includes the following in all agreements:
- Networking availability
- System health monitoring
- Security monitoring (firewall, IDS, antivirus)
- Application monitoring (SQL, Exchange, etc.)
- Website monitoring (intranet, extranet, web)
- Network audits
- Scheduled maintenance
- Remove management
- Help desk
- Patch management
- Reporting and analysis
- Vendor management
- CIO services
- Dark Web Reporting
At SWAT Systems, the costs can start out as low as $3.75 per day, per user. Ready to start the conversation? Contact us or book an appointment for a no cost, no pressure meeting—either on the phone, virtual or in person—to learn about managed IT services pricing and more.