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Cost and pricing models for Managed IT Services

describe the imageSwitching from in-house services to managed services can free up your IT staff to concentrate on larger projects, reclaim resources that are allocated to IT consultants and pay-for-service technology repairs, and relieve the pressures of keeping a technology infrastructure running. Because managed IT services are scalable, they are attractive for both large corporations and small businesses. The cost and pricing models for managed services varies by the level of support that is needed. Understanding common pricing models for these services can help you choose the level of support that you need and even compare different service providers.

The most popular Managed IT Services Pricing models on the market currently include:

  • Per-device pricing: The manager service provider asses a flat fee for each device that is supported. Because the pay scale here is transparent, this is a popular option for small businesses that don't have a large number of devices and want a straightforward quote they can understand.
  • "All you can eat" pricing: For clients who require that most or all of their networked services be managed, or for clients with a high number of devices, "all you can eat" works well. This option allows the service provider to assess a flat fee for remote support services per month. "All you can eat" typically does not cover onsite support, which costs extra.
  • Per-user pricing: Per user pricing measures the number of networked users hat require managed services, versus the number of devices. For companies that require employees to handle a lot of devices, this may be more attractive that per-device pricing.

Additional costs that may arise during a switch to managed services include:

  • Onboarding costs: Typically a one-time fee assessed to migrate to a managed service model, onboarding costs may cover the setup of VPNs (virtual private networks), network circuits, and other infrastructure needed. This may be covered by the service provider or assessed to the client.
  • Remediation costs: As an alternative to paying onboarding costs, clients may choose to upgrade equipment as needed, once managed services have launched. Remediation costs refer to any hardware or infrastructure costs that arise after service implementation because the client chose not to upgrade before service rollout.

A managed service provider should be able to clearly explain the benefits associated with each of these managed IT services pricing models, helping new clients choose the best model and advising existing clients that need to scale up services.


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