Your Complete Guide to Managed IT Service Pricing
Posted on Monday, August 14, 2023 and filed under Articles
An increasing number of companies are turning towards a managed service provider (MSP) to manage their technology. Despite this large scale shift, managed IT service pricing is still on most business owners’ minds. This is especially true with the rising cost of IT infrastructure.
If you’re considering an MSP, but worried about the price, this guide will help you break it down. Bear in mind that we can’t offer you an exact quote within the scope of this article. As you will see, the exact cost of an MSP varies on a few different factors.
However, we will take a look at those factors to help you understand what you would be paying for. We will also discuss various pricing models and explain how they work. Hopefully, this will help you get a better idea of what to ask for when you discuss costs with your MSP candidate.
| “In the world of managed IT services, the value of your investment is mirrored in the quality of solutions you receive.” – Jim Stackhouse CEO, NeoLore Networks |
What Are You Paying For With Managed IT Pricing?
Most MSPs charge a monthly fee similar to other subscription services. This is actually quite handy for your accounting department. It makes it much easier for them to predict your monthly IT spend so you can work together to allocate the rest of your budget to other business functions.
The question then becomes, what are you paying for in that monthly subscription? That partly depends on your pricing model (discussed below), but in most cases your fee covers the following costs. Please note that this is not an exhaustive list.
Comprehensive IT Support Services
A big part of many managed IT costs is support. This could include remote support and/or on-site support as needed. The service includes troubleshooting, system maintenance, and resolving any IT-related issues that may arise. The fee pays for the skilled professionals who provide this service.
Consistent Cybersecurity
Part of your monthly fee goes towards implementing and maintaining robust cybersecurity measures. This includes firewalls, antivirus software, and regular system checks to protect your business from evolving cyber threats.
| IT Services Offered by NeoLore Networks |
Software & Hardware Management
Often, your subscription fee covers the management of your software and hardware. This involves keeping your systems up-to-date and ensuring your hardware is in optimal condition. It’s a cost because it requires time and expertise to manage these updates and to replace or repair hardware as needed.
Data Backup & Disaster Recovery
Many MSPs offer backup and recovery services to ensure your information can be quickly restored in the event of data loss. Part of your fee is allocated to the secure storage space and systems to retrieve the data when needed.
Expert IT Consultation
Most providers also offer advice on how to use technology to achieve your business goals. Consultation fees may be included in your monthly cost or an added fee depending on your provider and pricing model.
How Much Do Managed IT Services Cost?
Like any business, the price of the service depends on who you talk to. Still, there are some average ballpark ranges you can expect. The other thing you need to keep in mind is that it will also vary depending on the MSP’s pricing model.
Let’s take a look at a few Canadian averages.
Managed IT Services Price List (Canadian Averages)
The Per User Model
This model charges you based on your number of users per month. This is a common model for small businesses because it’s straightforward, predictable, and easy to budget around.
Average price range: $101 to $399 CAD per user per month
The Per Device Model
The per device model charges based on the number of devices (like computers, servers, and printers) that are being managed. It provides flexibility as you can choose which devices need managed services.
Average price range:
- $200-250 CAD per month per server
- $50-100 CAD per user-facing device per month
The Tiered Model
The tiered model offers different service packages at varying price points. Each tier provides a specific set of services and you choose the one that best fits your needs.
Average price range: This model’s pricing varies significantly based on the services included in each tier. It could be anywhere from $3000 to $6000 CAD per month, more or less depending on the tier package.
The A-La-Carte Model
The a-la-carte model allows you to pick and choose specific services you want, rather than buying a bundled package. It offers the most flexibility but requires a clear understanding of your IT needs.
How Much Does NeoLore Networks Cost?
Reach Out to Find OutAverage price range: $30-$100 CAD per device per month, significant variation depending on how many services you select.
Managed IT Services ROI Calculator
Whatever price you end up with, it’s important to remember that value matters much more than the initial cost. That’s because the long term benefits can quickly outweigh the upfront managed IT costs.
Think of it this way. If the monthly flat fee from your MSP is less than what you expect to pay for your IT spend per month without them, then you’ll actually save money on your partnership. Consider how much you spend on IT per month without an MSP. That amount would include:
- Hardware purchases
- IT staff salaries
- Maintenance costs
- Emergency IT costs
- Software updates and upgrades
- Scalability costs
- Lost business opportunities
Try coming up with a rough estimate of how much all these things together cost per month. Then, use the calculator below to estimate how much money you would actually save by partnering with an MSP.
Interested in NeoLore Networks? Get a Quote!
If you’re looking to find out how much managed IT services from NeoLore Networks will cost, we invite you to request a quote. We want our clients to get the most bang for their buck, so we determine price on a case-by-case basis.
Our cost varies based on:
- Your company size
- The complexity of your network
- What we need to do to help you
Reach out to us today to learn more about how we can help you within your budget.