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How Are Managed IT Services Usually Priced?

How Are Managed IT Services Usually Priced
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There have been numerous advances in the world of business and many of them have to do with new or updated technology. When it comes to technology, it seems to be progressing at a faster rate than ever before. This means that there are new devices that seem to be hitting the market with regularity. As a result, some people might be having a hard time keeping up. If this is the case, then one option might be managed IT services. There is a good chance that these are advertised regularly throughout the local area. There are numerous advantages that come with having managed IT services. Some of the biggest benefits relate to direct staffing. The company no longer has to have IT professionals on its own payroll. Furthermore, the company will not need to scale up or down on a regular basis. This means that the company will be able to save money.

On the other hand, it is just as important for businesses to know how much managed IT services are going to cost. After all, transparency is another one of the expected benefits when it comes to managed IT services. Therefore, it is critical for companies to know how managed IT services are priced. This can help them make an educated decision on behalf of the company. With this in mind, how does pricing for managed IT services work? What are some of the important points to keep in mind?

The Pricing of Managed IT Services has Numerous Factors

It should come as no surprise that the pricing of managed IT services is going to depend on a number of factors. The cost of having IT services managed by someone on the outside is going to depend on a few critical components. After all, every business has different needs. Some of these needs might be relatively simple while others could be incredibly complex.

This is the first factor to keep in mind. The more complex the tech devices, the more expensive the services are going to be. For example, if the company just has a few computers and a network to manage and protect, the cost of managed IT services might be relatively low. On the other hand, if the company works with a bunch of fancy robots or has mobile vehicles that they use regularly, this could drive up the cost of managed IT services if these need to be serviced and maintained as well.

Before getting into the rest of the factors, there are a few key points of overview that everyone should note.

The Average Cost of Managed IT Services

Some people might be looking for a direct answer to the question of managed IT services cost. In general, the business could pay anywhere from $50 to $500 per user. This is a broad range and might not be that useful; however, for those who truly do not have any idea, they now have a nice ballpark with which to work.

Of course, where businesses fall on this spectrum is every bit as important. This is why it is important for people to keep riding instead of stopping here. That way, when companies reach out to managed IT services to get a quote, they will have some idea of the questions to ask, how the answers factor into the decision, and whether or not they are getting a fair deal. Now, it is time to dive a bit deeper into the world of managed IT services so that business owners can make an educated decision when it comes to the right managed IT services for them.

An Overview of Managed IT Services

One of the biggest challenges when it comes to estimating the cost of managed IT services is that this term can mean different things to different people. After all, there is a lot that falls under the umbrella of the term’ IT.” For example, the managed IT services needs of one business might be very different from the business next door. For this reason, it is time to get into the basic definition of what is meant when it comes to managed IT services.

At its core, the idea of managed IT services is that companies will have a third party filled with a team of specialists that will manage the IT needs of the business. There is a team of experts that will be able to meet some or all of the IT needs of the company. For this reason, managed IT services could include a few dozen things or literally more than 1,000 things.

The biggest benefit of managed IT services is that this provides the business with an opportunity to save money while also streamlining its own internal operations. It is usually more efficient for a company to work with a team of professionals who specialize in this area and scale quickly than it is for companies to employ their own team and try to manage this on their own. After all, IT is a deep, complicated world that can be difficult for someone to understand unless they manage it on their own. Employing a large team of IT professionals can be costly. This is why it is simply better to use managed IT services. For small and medium businesses, it makes too much sense for companies to overlook it. Now, it is time to get into the basic approaches of managed IT services.

The Two Approaches to Managed IT Services

When it comes to managed IT services, there are two broad approaches that these usually fall into.

The first is called partially managed IT. Some businesses might have one or more employees when it comes to managing their IT needs. The company might not have specific IT needs that require a dedicated IT team; however, there are still benefits that come with using managed IT services to handle some of the needs. They simply might be more comfortable outsourcing some of their needs but not all of them. For this reason, partially managed IT services are an option. For businesses that have existing IT personnel, there are still options when it comes to partially managed IT services. They can simply choose when, where, and how to outsource these IT needs.

The other option is to go to fully managed IT services. For small businesses, this is simply the most economical option. Instead of trying to pick and choose which services to outsource, it is better to outsource all of them. This includes everything from the procurement of hardware and software to the updating and maintenance of the devices. This also includes cybersecurity needs. This is the most common form of managed IT services. The major advantage of this method is that the company will be able to focus on its day to day operations without having to worry about their IT needs.

Now that businesses have an understanding of the basic approaches to the world of managed IT services, it is time to take a closer look at the various options when it comes to pricing. This will help companies make a decision on which managed IT services provider is right for them.

The Pricing of Managed IT Services

First, there are a few major factors that are going to play a role in the world of managed IT services pricing. Some of the biggest factors include the provider, the region, and the state of the customer. With this in mind, there are a few broad concepts that everyone has to note. Some of the biggest factors include:

  • The Per User Pricing Model: Many of the plans when it comes to the pricing of managed IT services will be calculated based on the number of users that have to be monitored. These are the employees that use the system every day. Now, not everyone will be counted as a user. In some situations, an employee who works part-time might only be counted as a half-user. It is important to get this information clarified before signing up for managed IT services. In general, anyone who requires IT support in the form of a mobile device, desktop computer, or anything in between is going to be counted as a user.
  • The Per Device Pricing Model: The other common model that is used in the world of managed IT services is the per device pricing model. Instead of counting the users, this model will count the devices. This might be better for companies that vary widely in terms of the number of devices that each person uses. In this situation, it is important to consider all of the devices that might need to be serviced. This could include PCs, Macs, tablets, mobile devices, printers, fax machines, and more. Remember that not all devices that require IT support have regular user interface.

Regardless of the pricing model the company uses, the pricing model has to be easy to understand. A reputable managed IT services should make it easy for people to understand where their costs are coming from. If they don’t they might have trouble getting people to sign up for their services.

Therefore, before signing with managed IT services, it is important for the business to take a close look at the contract. Look at the fees that are going to be charged. Figure out how the costs are going to be calculated. Make sure to understand what services are covered by the managed IT services. All of this is going to make a difference. The reality is that clarity is not always given; however, this might not be intentional. It is better for both sides to have clarity when it comes to the contract for any managed IT services.

Options for Managed IT Services

Even within a single provider, there are usually multiple levels when it comes to managed IT services. It is important for everyone to take a look at the various tiers of services that are being offered. People should have the option to select the service they want. Therefore, take the time to look at the various tiers and find the one that works best.

The Entry Level: One of the most common packages that managed IT services might offer is called the entry or basic level. At this level, the cost is low at the start; however, the price might also vary significantly throughout the life of the deal. For example, these services usually cost only around $70 to $150 dollars per month. Most of the managed IT services at this level include having a security team simply track the server to make sure that nothing is wrong. Basically, the managed IT services simply monitor the server and let the client know if anything goes wrong. There are numerous benefits that come with having this type of security. On the other hand, if additional assistance is required, the costs are going to go up quickly. If there is anything else that is needed on top of the basic level, clients should expect to pay an extra few hundred dollars per hour depending on the complexity of the issue that needs to be solved. Therefore, it is important for companies to think carefully about whether they need a higher level of service at the outset. In some cases, companies might even be able to pay a retainer in advance in exchange for a lower hourly rate. These are a few of the most important factors to consider when it comes to managed IT services at this level.

The Mid-Tier Option: The next option when it comes to managed IT services is right in the middle. The lower price option simply costs more in the long run, so for most businesses, this next level is going to be the best option. Yes, this type of service is going to be more expensive initially; however, it pays off in the end. Usually, the managed IT services provider will be able to help the company solve more issues upfront before they lead to major and more expensive repairs later on. This is because the managed IT services is more involved. They will be actively tracking the various devices and taking care of maintenance issues. In exchange for a flat fee upfront, some of the services that might be included are IT planning, IT strategy, IT design, remote support, on-site support, 24/7 IT support, backups, disaster recovery, and more. At this level, the managed IT services are usually priced based on the number of people who are using the devices on a regular basis. Because the services above usually cover a wide range of services, it is rare that someone might have to pay by the hour for services that aren’t included in the contract. Notice that many of the issues that might be included in the per hour pricing at the entry level are included in the services listed above. This is why this level of managed IT services is one of the most popular in the business world. In general, the per user pricing model is going to range from around $100 to $200 per user but this could vary with the location and the provider. If someone is going with the per device model, it could range from $200 to $500 for a server and #40 to $150 for a workstation. The devices are going to vary, so with any managed IT services, it is a good idea to look closely at the contract and make sure that all of the information has been clarified.

The High-End IT Services: Of course, when it comes to managed IT services, there is a level above the middle option. The highest option is only necessary for some businesses. Any company that needs to be fully hosted or that uses the cloud should be checking out this option. If the IT service needs to provide the company with literally its entire infrastructure and service the system from top to bottom, that is where this option is appropriate. This is a very large option, so this is where the contract is even more important. All companies need to be very clear with the managed IT services provider at the outset what they are expecting. This will allow the managed IT services to write up a contract that literally covers everything from top to bottom. There shouldn’t be any need to ask for additional hourly services on top of this.

These are the most common options when it comes to managed IT services. It is incumbent on companies to take a look at their needs now, what they expect them to be in the future, and come up with a managed IT services provider that will meet their needs.

Considerations When Looking for Managed IT Services

There are lots of options when it comes to managed IT services. Therefore, it is important for companies to take a close look at the various options and find one that is right for them. In order to make the right decision, there are a few factors to consider.

First, it is important for companies to think about the tech matrix they are using and find a managed IT services provider that is comfortable with these devices. Some of the items that businesses might be using include laptops, smartphones, tablets, PCs, Macs, servers, antivirus, WiFi networks, VPNs, printers, fax machines, and more. Not all managed IT services are going to want to deal with these objects. Therefore, businesses need to ask upfront what the managed IT services is capable of handling.

Next, businesses also need to consider whether they have an existing IT team. In some cases, it might be easy for the existing team to integrate with the managed IT services. In other cases, this might not be the case. It is important for companies to meet with the managed IT services and talk about how the existing team is going to be used, if they are. This is important for the company, the managed IT services provider, and the people who work on the existing team.

Think About the possible needs as well. Some companies might only need individual services while other companies might need comprehensive services. Most managed IT services are going to be able to handle both; however, this is going to impact how the managed IT services approaches the contract. This is going to play a role on the pricing model. Therefore, companies need to think about what their needs are before they start looking for managed IT services. This will help them guide the search.

Finally, once all of this information is on the table, it is time to get a quote. Some of the factors that will impact the quote include the complexity of the technology, whether they need a network provided for them, the level of service they need, and whether they will be keeping their own staff on the payroll. All of this is going to play a role in the pricing of any managed IT services. Therefore, be sure to talk with trained IT professionals and get all of this information clarified before signing a contract.

Trust the Trained Professionals

It is important for all businesses to think carefully about whether or not managed IT services are right for them. With the rapid growth in the rate of tech advancement, it is becoming harder for companies to keep up on their own. This is why so many businesses are making the decision to move to managed IT services. Anyone who is looking for managed IT services in the local area should give us a call today. We are a team of trained professionals that can handle everything from device procurement to software updates, cybersecurity, maintenance, cloud capabilities, and more. We would be happy to do the same for you as well. Reach out to us today to learn more about how we can help you! We would love to help you with all of your managed IT services needs!

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