Different managed services pricing models exist depending on service levels and business philosophy. If you are looking to outsource your IT department to a local IT services firm, there are a few basics you should know.

managed services

Types of Managed Services Pricing Models

The explanation of these managed services pricing models is only meant to be informational, and should not be considered a recommendation for which type is right for your business. Each of these has been employed with varying levels of success by small to medium sized business.

  1. Value-Pricing: The basic idea behind this pricing model is that a flat fee is charged to the client for all services rendered monthly. These services might include monitoring, hardware and software support, and onsite technical assistance. This is considered by many to be the best model for the client, as it allows a full breadth of service without any budgetary surprises. For the managed services provider, the guaranteed monthly income allows for hiring of quality personnel, upgrades to critical equipment and the best in cyber support.
  2. Per Device: This is the simplest pricing model, proposing a flat fee for each supported device. For instance, the MSP may charge $79 per desktop, $219 per server and $35 per network printer for technical support and service.
  3. Tiered Services: Another popular way to purchase managed services is with increasing tiered pricing. A low level bundle may include basic phone support, patch and software upgrade management, while providing remote support. As the levels increase in price, the MSP might add onsite services and after hours support. Often, a managed services company will also add a la carte items to customize these packages.
  4. Pick From Each Category: This method of pricing categorizes services into low, medium and high priority activities and allows a client to choose a set number from each. For instance, the MSP may allow a client to pick “one service from Column A, two services from Column B and two services from Column C” for a flat fee.
  5. Á La Carte: This particular pricing model is the least popular and the least offered of the managed services pricing models. The idea is to permit the client to pick and choose the Managed Services they would like from a large menu of individually priced services. In order for this model to be sustainable for the MSP, the services need to be more expensive individually than they would be bundled together, and therefore clients will see costs mounting quickly – and may still not get all the services they need.
  6. Monitoring Only: For those organizations which have an IT staff, sometimes they simply need help with threat and incident management. The MSP can keep an eye on the network, respond to any problems, and monitor for cyber attacks. This high-level surveillance keeps the company safe and allows the company personnel to attend to the day to day issues. Monitoring is a key component of any successful data network, and should be considered by all small to medium sized businesses, even if they don’t need any other support.

If you are looking for any level of managed service support, or are curious as to how managed services can benefit your organization, call Alliance IT today. We will perform a technology assessment, present you with our recommendations, and help you to determine the proper level of support for your company. When shopping for managed services, pricing is important, but not everything. Be sure to pick an IT services company that has the technology and expertise to help you grow and thrive.