Standard Managed Services Pricing Models

Founder & CEO at Dynamix Solutions

5/5 - (3 votes)

When purchasing managed IT services, trying to do a direct comparison between providers can be challenging. Not all managed IT service providers use the same pricing model, so you’re not always comparing apples to apples when trying to understand cost versus value.

Some pricing models may provide you with a full package of complete managed IT services, while others may allow you to choose only the services you need. It’s important to understand how each model works so you can make an informed decision.

Managed IT service solutions are vital to businesses that don’t have in-house IT teams and that want to keep their technology infrastructure optimized and secure. The number of cyberattacks keeps increasing each year. In 2020, ransomware attacks skyrocketed by 485%. MSP solutions reduce the risk of falling victim to an attack.

Benefits of Managed IT Services:

  • Ongoing maintenance of hardware
  • Patch and update management for software and firmware
  • Cybersecurity management
  • Network and bandwidth monitoring
  • Managed backups
  • Virus shield, security, and firewall administration
  • Product license management
  • Cloud application management
  • Add-ons like identity theft protection/dark web monitoring

Now, let’s take a look at what the six key pricing models are when purchasing managed IT service solutions. Then, we’ll give an overview of the features and benefits of each type.

The 6 IT Managed Service Pricing Models Are:

There are typically six popular IT service pricing models when purchasing managed services. The key to choosing the best model for your small or mid-sized business is understanding how each one works.

These 6 technology management models are:

  • Monitoring-only
  • Per-device
  • Per-user
  • Tiered
  • All You Can Eat
  • A la Carte

What Is the Monitoring-only Model?

One of the basic tiers of managed services is the Monitoring-only Model. This entails the managed services provider (MSP) monitoring your network and/or server 24/7 for any signs of threats. 

The client is warned automatically should a threat be detected. The MSP may also provide additional troubleshooting services for an added fee. This model is usually charged on either a monthly or annual basis.

The Monitoring-only pricing model is helpful for companies that have budgetary constraints or already have an in-house IT team. It offers an affordable way to keep networks well protected proactively.

What Is the Per-device Model?

This pricing model is based upon managing a single user device, such as a desktop or laptop. For each device being professionally monitored and managed, the client is generally charged a flat monthly or annual fee.

The Per-device model can include many different types of devices and each one may have a different fee. Devices could include:

  • Computers
  • Laptops
  • Servers
  • Network Printers
  • Mobile Devices

There is a bundle of services that are provided for the device, which can include things like update and patch management, antivirus, DNS filtering, regular internal performance optimization, and more.

The benefit of this pricing model is that it’s scalable to be used with as many or few devices as the company needs to have managed. 

The average cost of an unmanaged PC is US$5,000 (CA$6,200) per year.

What Is the Per-user Model?

The Per-user pricing model for IT services is very similar to the Per-device model, with one exception. In this model, the customer is paying by how many employees (“users”) they have instead of per device.

This can be a benefit to a company over the Per-device model if employees are using tablets or smartphones in addition to a PC. In this pricing model, the same types of services are offered as the Per-device model, but the per-user price can include management of more than one device.

What Is the Tiered Model?

The Tiered Model is a popular one when pricing managed IT solutions. It uses a packaged approach with different price levels. These packages might be called “Bronze, Silver, Gold,” for example.

As you go up to the next tier, more managed services are added to the package. These packages will typically have a flat monthly or annual rate that’s paid for all the included services.

The Tiered pricing model gives companies options and allows for smaller companies to get the most affordable package and then move up to a higher tier of services as they grow.

What Is the All You Can Eat Model?

The All You Can Eat Model provides a company with all the managed IT support they need without any pricing surprises or ceilings to services. For example, this model will often include unlimited remote and on-site support and 24/7 service calls for a flat monthly or annual rate.

Customers will usually only have to pay additional costs in the case of a hardware replacement, in which case they would pay for the parts or any expense that is out of the ordinary.

This model is the best to use if you are unsure of how much support your company will need. It provides a figure that’s easy to budget for your managed IT services that are not going to fluctuate.

Companies with multiple remote employees that need access to IT support for productivity will also benefit from this pricing model. They won’t have to worry about going over a cap of monthly support hours.

What Is the a la Carte Model?

The a la Carte model is just what it sounds like. You have a “buffet” of various MSP services to choose from and you can pick the ones that you need and leave off the ones that you don’t. 

Typically, each service you add will have its own monthly or annual fee, so it can be difficult to know upfront what your package will cost until you get everything chosen.

This model offers the most flexibility for businesses that want to be able to use only those services that they happen to need at any time.

Get a Customized Quote for IT Services from Dynamix Solutions!

Dynamix Solutions can customize a managed services plan for Calgary business or Toronto that’s affordable and has all your technology needs covered. 

Contact us today to schedule a consultation! Call Toll Free: 1 (855) 405-1087 or reach out online.

Leave a Comment