- WRITTEN BY Jorge Rojas POSTED ON July 15,2019
A 6 Pricing-Model Guide
When you call around trying to find out how much Managed IT Services cost, you’ll probably find that the pricing isn’t uniform. The answers you receive can vary, and you may end up confused and frustrated. Unfortunately, there’s no online catalogue to pick and choose from or a one-price-fits-all formula. However, there are six popular Managed IT Service Pricing Models that you can use as a guide.
What Are These Six Managed IT Service Pricing Models?
IT companies offer a wide variety of services. And like other service-oriented companies, each has pricing based on what they provide and the value it brings to their clients. Even though their pricing may vary, they will typically offer these six different pricing models.
Note: The pricing models here don’t constitute specific pricing. Instead, each model represents a set of services provided in the desired plan.
The 6 Pricing Models Are:
- Monitoring Only
- Per Device
- Per User
- All You Can Eat
- A La Carte
1. What Is The Monitoring-Only Model?
The monitoring-only model provides network monitoring and alerting services. Your IT provider can offer this model to companies of all sizes. The midsize or enterprise companies with in-house IT technicians can also use this service and be alerted when something goes amiss. With this model, there are several service levels offered.
2. What Is The Per-Device Model?
The per-device model is a flat fee for each device that’s supported in your IT environment. For instance, a basic per-device pricing model might designate a flat price: per desktop / per server / per network printer / per managed network.
The pricing is straightforward to quote, and the monthly service fee gets adjusted when you add or delete devices.
3. What Is The Per-User Model?
The per-user model closely resembles the per-device model. But instead of being billed per device, you’re invoiced per user, per month, which covers support for the hardware used by each user. The support typically covers commonly used equipment:
- Office Equipment: PC, laptop, tablet, and connectivity
- Home Equipment: home PC, laptop, tablet, and smartphone
- Communication Equipment: hotels and kiosks when traveling
4. What Is The Tiered Model?
The tiered model is designed to provide bundled packages. With each package, “X” amount of services are included. And as a tiered model, there are three or more bundled package levels, with three or more pricing levels.
They usually get labeled as “Gold, Silver, and Bronze” or “Basic, Standard, and Premium.” The premise with this model is simple–when you pay more, additional services are available that aren’t offered with a lower-level bundled package.
5. What Is The All You Can Eat Model?
The all-you-can-eat model gives you flexibility. Budgeting your IT expenses in this manner enables you to gauge what’s taken place over the past year, and then make calculated IT cost forecasts for the coming year. Typically you’ll have access to:
- Remote support / On-site support
- Lab or Bench time / 24/7 year-round support
- Services during specific hours of the day / particular days of the month
The all-you-can-eat model gives you the ability to genuinely budget your IT support costs over a year with no hidden or surprise fees.
6. What Is The A La Carte Model?
The a la carte model is unique. With this model, you’re getting individual services. Maybe there’s a specific problem which came up and needs addressing. This is when you pay for only the services you need. You can also create a customized Managed IT Services Bundled Package that’s tailored to your company’s specific needs or requirements. This is what makes this model different from an all-inclusive, Managed IT Services model or pre-bundled package.
What About Actual Pricing Ranges?
Actual pricing ranges vary from one jurisdiction to another. But to give you a brief overview of what pricing ranges look like, here’s the breakdown. Just remember that these aren’t actual prices, only pricing ranges.
- Flat-Based Range: Monthly, quarterly, or annual fee depending on needs
- Per-User Range: 166–399 CAD per month
- Per Device Range: 6–133 CAD per month
This should give you a guide for how much Managed IT Services should cost when you call different providers.
How Does Managed IT Service Compare To Hiring A Full-Time Tech?
Some small businesses hire one or more in-house IT technicians on a full-time basis to handle their technology infrastructure. Depending on where you live in the GTA, an IT technician might earn between $50,000 to $116,000. In addition, you’ll have to provide insurance, paid vacations, and a range of benefits.
The biggest problem for most companies comes when your IT tech gets a year or so of experience under their belt. They often begin to look around to see if they can find a better-paying job, and eventually, they leave you for a larger company that offers better benefits.
This is practically inevitable. It happens frequently. You put a lot of time into training employees, and then they leave you for another firm. Now you must start all over again.
Can We Use Managed IT Services To Supplement Our In-house Techs?
Yes… this is called Co-Managed IT Service. A Co-Managed IT Solution can give your team the additional support they need to optimize IT performance and accomplish their tasks efficiently. It’s a solution that offers numerous benefits.
Co-Managed IT Services allow you to get help with big projects when you need it. You can also cut back on the number of IT employees you hire. With Co-Managed IT Services, you’ll have the people and help you need if a big problem crops up that no one can resolve. And these are IT professionals with lots of industry experience.
To help you decide if Managed IT Services are right for your business in Toronto, you should stay up-to-date on the latest news and information in IT. Visit our Blog where we publish current articles each month.
Tektonic Managed Services is an IT Support and Computer Services company serving Toronto GTA. We provide services in and around Toronto, including York Region, Durham Region and Peel Region. Businesses like yours need technology support to run highly-effective organizations. Leverage pro-growth technology services for your company now!