Paying For Managed IT Services
Want to figure out if you’re paying the right price for your IT services?
Unfortunately, that’s easier said than done. Try as you might, getting the actual price of a service from a managed IT services company can be a lot of work.
That’s why we’ve laid out all the necessary information for you right here. However, before we get to the price, we have to start with the different types of services models…
6 Types Of Managed IT Services, And What They Mean
1. Monitoring Only: This is a fairly limited model, often favored by larger businesses that have their own form on internal IT support to handle larger projects and bigger issues. This model offers just network monitoring and alerting services.
2. Per Device: The cost of this plan is based on how many devices your company uses. That means it scales directly to the size of your business. This is key for organizations with minimal IT needs, say with a larger staff sharing a few workstations, with small server resource requirements.
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 more devices into this model.
3. Per User: The inverse of the Per Device model, this model is based on support for your number of users. So, instead of the above, this is ideal for organizations that may have a smaller staff but use a number of different devices for different types of work involved in their service offering.
The support typically covers commonly used equipment:
- Office equipment: PC, laptop, tablet, and connectivity
- Home equipment: home PC, laptop, tablet, and smartphone
4. Tiered: Tiered models are not based on your organization size, but instead, offer different levels of support and a range included services.
This mode is arranged in bundled packages that offer “X” amount of services. And being that this is a tiered model, it also means 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 become available, not offered with any lower-level bundled package.
5. All-You-Can-Eat: This model is designed for flexibility, making it easier for you to budget over the course of a year of managed IT services.
You’re able 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 available during specific hours of the day / particular days of the month
The all-you-can-eat model gives the client the ability to genuinely budget their IT support costs over a year’s time and experience no hidden or surprise fees.
6. A La Carte: This model is hard to describe out of context because it’s designed to allow the client to choose exactly what services they want. With this model, you’re getting individual services, piece by piece, to handle what you need. Maybe there’s a specific problem that has come up and needs addressing – that’s when you pay for the services you need.
You can also create a customized managed IT services company bundled package for yourself, tailored to your company’s specific needs or requirements.
How Much Should Managed IT Services Cost?
- Flat Based range: Monthly, quarterly, or annual fee depending on needs
- Per-User range: $125–$300 per month
- Per-Device range: $5–$100 per month
Are Managed IT Services Your Only Choice?
But, really, they should be. If you really want to, you could instead choose hourly IT support, but we wouldn’t recommend it.
By-the-hour IT support is the most ineffective model, for a number of reasons:
- A part-time technician won’t be familiar with your IT and will take longer to solve the problem.
- It’s better for your hourly IT support if they don’t permanently fix the problem – then they get to come back again later and make more money off of you.
- It’s nearly impossible to budget accurately for hourly, reactive IT support like this.
When something goes wrong — data loss, hardware failure, virus, etc. — you then get in touch with your hourly IT support in San Jose and have them fix it. It’s very expensive and very inconsistent – that’s why this strategy no longer works for businesses.
If you really want to avoid one of the six main models, be sure you’re ready to shell out for one of the following estimated price ranges of hourly IT support:
- One tech: $100 – $125/hour plus travel time
- Two techs: $225 – $250/hour plus travel time
- IT Specialist: $250/hour plus travel time
Now you’ve got the info you need to make your decision. Based on your budget and your IT needs, you should be able to determine the model that you need and can afford.
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