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Managed IT Services Pricing Models

Managed IT Services Pricing ModelIn the last few years, managed IT services pricing models have grown increasingly complex. A variety of formulas are used during the price setting process. Striving to provide clients with a wide range of options may seem great in principle, but if taken too far, this tactic only ends in confusion. Simplified set-ups offer convenience for both the client and the provider. Read more to learn about common pricing models:

Per-Device Pricing

This model does exactly what the name suggests. The managed services provider (MSP) sets a different flat fee for each supported device. Easy to quote and implement, this model is by and far the most straightforward. It is a popular model for smaller companies looking for a reasonable level of support and security.

All-You-Can-Eat Pricing

The all-you-can-eat managed IT services pricing model works a lot like a buffet restaurant. The client pays a flat fee each month and in exchange, the MSP offers unlimited remote support. Onsite services may be limited or unlimited, depending on the provider. This may be a viable option for clients requiring significant support from MSPs.

Per-User Ticket Pricing

The per-user approach closely follows that of the per-device model, the key difference, of course, being that the per user is set based on the number of employees requiring IT support. A lot of businesses shy away from per-user ticket models. Companies that do adopt this model usually assign multiple devices to each employee.

Onboarding Costs Pricing

MSP onboarding involves the process of taking on new clients. During the onboarding period, the provider will install network circuits, configure virtual private networks (VPNs) and complete any other tasks needed to get the client started. Some MSPs charge start-up fees to cover the cost of onboarding.

Remediation Costs

Some companies choose to go with a  managed service plan that doesn't require fixing their environment, instead paying remediation after damage has occurred or dealing with poor uptimes. This tactic can be pricey in the long-run, but is still helpful for clients in desperate need of repair work. A proactive approach to managed services can prevent later catastrophes, which is why MSPs advise against an over-reliance on taking over as-is environments.

 

 

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