How Much Do Managed Services Cost?

Feb 20, 2019

You have made the decision that it is time to look into hiring a Managed Service Provider but you can’t seem to find the answer to one of the most important questions…how much do they cost? There are many factors of managed services that can cause fluctuations in pricing, making it difficult to get a definite answer. We understand that this can become frustrating and confusing so we have compiled the information needed to help you make the decision that is best for you. In this article you will learn what goes into the pricing of managed services, such as; location, size, specific products and offerings. Defining these factors provides an understanding for the cost of managed services.


Before looking at pricing it is important to know and understand the many services that most managed services providers offer and what your company may need. Once you have an understanding you will be able to develop an idea of what goes into your IT services and why. Some of these services include:

  • Email– Adding and removing users, configuration of company signatures, training and managing emails for businesses
  • Virus Protection-Develop strong anti-virus strategy, continuous updates
  • Network Monitoring– Oversite to ensure that your staff is protected and secure day-to-day, from internal to external threats, managed overall network performance 24/7/365
  • Hosting– Monitoring and maintaining applications, documents, and websites on servers
  • Technology Procurement– The need to purchase software, hardware, and services to help staff become more productive and competitive
  • Data Storage and Backup-Plan to backup important files for your business on a regular basis as well as the ability to restore it if needed
  • Compliance- HIPAA, PCI,DFARS
  • Security– Plan, administer and continually secure property, assets and data
  • Spam Filtering (unsolicited email)- block unwanted emails, takes configuration and continuous updates to keep out unwanted emails
  • Users- Number of people who will be monitored by MSP
  • Labor
  • Training

Pricing Models

We often get asked what the best model is for managed services and the honest answer is simply… it depends.

There are a variety of models to consider when requesting proposals, understanding the cost and being able to compare what comes with each model will allow you and your company to make the choice that is best for you. Some of these pricing models are discussed below.

Flat Based

  • Most popular because it usually includes everything discussed above at one price.
  • May include 24×7 service
  • Can bundle extra services if needed
  • Typically billed monthly, quarterly or annually
    • There really is no price range for this model as each company will prepare a proposal specific to your company needs.

Per User

  • Flat fee per end user per month and cover IT support on all user devices
  • Freedom- Allows companies the most room to grow and simplifies their budget planning year-to-year
  • A comprehensive, full-service model will generally run $100-$200 per user per month

Per Device

  •  Flat fee for each type of device that is supported in a customer environment
    • Includes but is not limited to; desktops, laptops, mobile phones, tablets, printers, home PCs and copiers.
    • Pricing can be deceiving, usually starts low but grows quickly after added up all devices used within a company.
  • This model can range between $5- $100 PER DEVICE, per month.
    • Not ideal for companies with many devices.

Tiered Pricing Model

  • Bundled packages of IT Services
  • Increases in price as services are added
  • Allows flexibility to implement the best Managed IT solution for your company

Questions to ask yourself when deciding on what model is best for your company include:

1. Would you like to have someone onsite daily as an internal IT staff member?

2. Do you prefer a predictable flat cost each month or a low cost that can vary with extra charges depending on different circumstances?

3. Do you want both remote services as well as onsite?

4. Is your technology environment challenging? (This can be difficult for companies to answer as we have found their environments are typically much more complex than what they originally believed.)

5. Do you currently host your network onsite or in the cloud?

Make sure to take a deep look at the different services each company offers. Many companies have services with the same name but offer completely different services. When interviewing providers make sure the company is clear about what comes with each service.

Need help in making a decision? Feel free to reach out to us, whether you choose to use our services or not we would be happy to help. Give us a call at (855) 639-4436.