In 2023, managed services spending accounts for 18% of IT budgets, up from 15% in 2020. This is because many companies turn to managed service providers (MSPs) to ensure their technology stack runs smoothly and efficiently. However, understanding the exact costs associated with it presents a challenge for SMBs.
“The true cost of managed IT services extends beyond the invoice. It includes the value of enhanced security, increased efficiency, and the peace of mind that comes from knowing your IT infrastructure is in expert hands“, says Ryan Locking, COO, CAUSMX Technologies.
In this guide, we’ll simplify how managed IT services pricing works, outline the various pricing options, and offer advice on getting the best value from your IT services. You’ll also find a handy calculator to help you easily determine the cost of managed IT services.
Managed IT services pricing models can vary depending on the pricing model chosen. Each model offers different benefits and can impact the overall cost.
| Pricing Model | Pros | Cons | Ideal For |
|---|---|---|---|
| Per Device |
|
| Small businesses with a limited number of devices |
| Per User | Covers all devices per user, offering flexibility as technology usage evolves. | Costs may rise with each new hire, regardless of device count. | Employees using multiple devices |
| Tiered | Offers different levels of service at fixed prices, allowing for scalability. | Higher tiers can be costly. Basic tiers may lack essential services. | Businesses seeking scalability for a predictable cost |
| All-inclusive / Flat Rate |
|
| Businesses looking for simplicity and full IT management |
| A La Carte |
|
| Specific, varying business needs or project-based requirements |
This is a straightforward model where costs are based on the number of devices serviced. It is predictable but may not scale well for businesses with many devices. This pricing approach might be the most cost-effective solution for those requiring basic tech support for just a few devices.
A per-user model charges based on the number of users, simplifying billing for businesses with employees using multiple devices. This can be more cost-effective than per-device pricing in some scenarios.
Tiered pricing offers packages or “tiers” of service, each with a set price and specified services. Businesses can choose a package that meets their needs and budget. Make sure you select a package that includes all the services you need, such as vendor management, remote support, or 24/7 helpdesk access.
This model allows businesses to create a personalized managed IT services price list as needed, offering maximum flexibility. By picking just the services you need, you can ensure that your IT support perfectly fits your business needs and budget.
A flat fee model charges a single, all-inclusive monthly fee for all IT services, offering predictability in budgeting. This model is easy to budget for but may include services that you don’t need.
Now that you understand the costs of managed IT services, let’s examine what can affect your total cost. This will help you choose the best payment plan for your company, select the services you really need, and avoid paying for unnecessary services.
Understanding the average cost of managed IT services can be challenging due to service variability and pricing models. The monthly expense of managed IT services can vary between $166– $399 CAD per month.
The size of your business, the complexity of your IT needs, and the level of support you require can influence the costs.
Once you have a cost estimate, you can determine the ROI you’ll receive from your managed IT services. Consider the cost of IT management without a service provider and compare it to the cost you calculated above.
Then, you can use this formula to estimate your potential ROI.
For example, if the cost of a provider is $10,000 and the cost of IT without a provider comes to $11,000, your ROI using this formula would be $1,000.
Understanding managed IT pricing ensures you make an informed decision, optimizing your IT operations and budget for long-term success. The right IT partner helps you meet your specific business needs and fits your budget constraints.
CAUSMX Technologies offers tailored solutions that align with your business requirements and budget.
Contact our IT specialists to learn how we support your business goals without overspending.
