Luis Aponte 
As a business owner, finding ways to standardize and predict costs is crucial. In fact, 96% of surveyed leaders cite the predictability of IT budgets as extremely important. So, it makes sense that an increasing number favor managed IT service rates over the hourly rates of many outsourced professionals.
| “Predictable IT costs are both a financial relief and a strategic advantage in today’s fast-paced business environment.” – Whawenst Duvet, CTO, OneTech360 |
There are multiple reasons why their predictable costs matter to so many business leaders. The financial benefit is the most obvious. However, predictable IT budgeting also improves resource allocation, stakeholder confidence, and risk management.
Plus, with clear financial foresight, businesses can invest in innovation and growth opportunities. This proactive approach enables companies to stay competitive and agile in adapting to market changes.
While managed IT pricing can offer all of these benefits, it’s important to realize that not every managed service provider (MSP) will structure costs in the same way. That’s why this guide is here to help you understand managed IT costs and how they may be structured.
How Much Do Managed IT Services Cost on Average?
Managed IT service pricing ranges anywhere from $150 per month to $400 per user per month. However, please note that this average is specific to the USA and Canada. Other regions may be more or less expensive on average. This average also doesn’t account for any additional fees an MSP may or may not charge.
Although this is still an additional cost to add to your budget, it will become less expensive over time compared to reactive IT support or extending your in-house team. Specifically, CloudSecureTech notes that businesses who partner with an MSP enjoy 25% lower overall IT costs.
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Different Managed IT Service Pricing Structures
Tiered Pricing
In this structure, service packages are offered at different levels, with each tier providing a specific set of services and features. Businesses can choose whichever tier that matches their needs and budget.
Flat Rate or All-Inclusive
This model is a fixed monthly fee that covers all IT services and support. It provides predictable costs and comprehensive support across all potential IT service areas. This cost structure is ideal for businesses looking for a simple and all-encompassing solution.
Pay-As-You-Go
When services are billed based on actual usage, it can provide flexibility for businesses with fluctuating IT demands. This model can be more cost-effective for companies with variable IT needs.
How MSPs May Charge for Their Services
Not only does the cost structure vary depending on the MSP, so will how the MSP determines the costs within that structure. Common pricing models include the following.
| Per Device | Charges based on the number of devices managed, such as desktops, laptops, and servers |
| Per User | Charges based on the number of users |
| Block Hours | Pre-paid blocks of hours that can be used for IT support and services as needed |
Factors That May Affect Managed IT Service Pricing
Organization Size
The size of an organization directly impacts its IT service costs. This is simply because bigger companies often have more users and a more complex infrastructure to maintain. Larger organizations also usually require more comprehensive IT support for their extensive systems.
Infrastructure Complexity
Complex IT systems and legacy hardware demand more resources and expertise for effective management. This complexity increases the time and effort required to maintain and update systems. Consequently, businesses with such IT environments often face higher service costs.
Service Level Agreements (SLAs)
Service level agreements (SLAs) define the level of service and response times a business expects from their IT provider. Higher service levels and faster response times typically result in increased costs.
| Learn More About What an MSP Can Do For Your Small Business |
Compliance Requirements
Additional services such as security risk assessments and audits may be necessary to ensure compliance. These requirements often lead to higher expenses for companies needing to adhere to industry regulations.
Geographic Location
Geographic location can influence the cost of managed IT services. While many providers offer remote services, the demand for onsite support can vary by region. However, by 2025, 68% of MSPs are expected to deliver their services fully remotely, which may reduce geographic cost disparities.
Managed IT Services ROI Calculator
What you can expect to pay for managed IT services can only be determined between you and the provider. However, you can proactively estimate the potential ROI of these services once you have that figure. The following calculator can help.
Note: The calculator above uses hypothetical values to prepare a demonstrative estimate. The calculator does not reflect Network 1 Consulting’s pricing. For an accurate estimate of how much your managed IT services will cost, get in touch with our team.
How to Use the Managed IT Services ROI Calculator
- Determine Current IT Costs:
- Monthly IT Expenditures: Calculate the total monthly cost of your current IT operations. This includes all expenses related to IT staff salaries, software licenses, hardware maintenance, network infrastructure, security measures, and any outsourced IT services.
- Enter in the Calculator: Input this total amount in the “Current IT Costs (monthly)” field of the calculator.
- Estimate Savings from Managed IT Services:
- Research Potential Savings: Contact managed IT service providers to get quotes and understand the potential cost benefits. Consider reductions in IT staff costs, decreased downtime, improved efficiency, and access to better technology and expertise without direct investments.
- Estimated Monthly Savings: Calculate the difference between your current IT costs and the proposed costs from managed IT services.
- Enter in the Calculator: Input this estimated savings amount in the “Estimated Savings (monthly)” field.
- Calculate ROI:
- Click Calculate: Press the “Calculate ROI” button to see the potential return on investment (ROI) expressed as a percentage.
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Choose OneTech360 For an MSP Who Can Meet Your Budgetary Needs
Since your monthly price can vary, it’s important to consider how every MSP candidate charges for their services. Make sure you consider your specific needs. For example, pay-as-you-go pricing may not truly be cheaper if you experience frequent IT issues.
If the tiered pricing model is right for you, consider OneTech360. We offer 3 service packages.
- Basic
- Advanced
- Elite
If you aren’t sure which one of our packages is right for you, you may work with one of our IT consultants. They can help you determine the best tier for both your needs and your budget. Plus, every package will always put security services in the forefront.
Contact us today to get started.
Luis Aponte
