The 6 IT Managed Service Pricing Models?
Like with any service industry, IT Managed Service Providers offer a wide variety of services. And like other service-oriented companies, each has pricing fees based on what they provide and the value it brings to their clientele. But what ABC MSP charges will differ from what XYZ MSP charges.
Even though their pricing may vary, one thing is for sure; each offers six different pricing models.
NOTE: Pricing models don’t constitute specific pricing. Instead, each model represents a set of services provided in the desired plan.
The 6 IT Managed Service Pricing Models are:
- Monitoring Only
- Per Device
- Per User
- All You Can Eat
- A La Carte
1. What is the Monitoring Only Model?
The Monitoring Only Model provides network monitoring and alerting services. The Managed Service Provider offers this model to companies of all sizes. Companies with in-house IT technicians can also benefit from this model. Several service levels are offered.
2. What is the Per Device Model?
The Per-Device Model is a flat fee for each device that gets supported in your company’s IT environment. For instance, a basic per-device pricing model might designate a flat price:
- per desktop / per server / per network printer / per managed network
The pricing is straightforward to quote, and the monthly service fee gets adjusted when you add more devices.
3. What is the Per User Model?
The Per-User Model closely resembles the per-device model. Instead of being billed per device, you’re invoiced per user, per month; which covers support for all methods used by each user. The support typically covers commonly used equipment:
- office equipment: PC, laptop, tablet, and connectivity
- home equipment: home PC, laptop, tablet, and smartphone
- communication equipment: hotels and kiosks when traveling
4. What is the Tiered Model?
The Tiered Model is designed to provide bundled packages. With each package, “X” amount of services are included. And since this is a tiered model, it also means that there are three or more bundled package levels, with three or more pricing levels. They usually get labeled as “Gold, Silver, and Bronze” or “Basic, Standard, and Premium.” The premise with this model is simple–when you pay more, additional services are available that aren’t offered with the lower-level bundled package.
5. What is the All You Can Eat Model?
The All-You-Can-Eat Model gives you flexibility. With this model, budgeting your IT support expenses enables you to gauge what’s taken place over the past year, and then make calculated IT cost forecasts for the coming year. Typically you’ll have access to:
- remote support / on-site support
- lab or bench time / 24/7 year-round support
- services available during specific hours of the day / particular days of the month
The All-You-Can-Eat model gives you the ability to genuinely budget your IT support costs over a year without hidden or surprise fees.
6. What is the A La Carte Model?
The A La Carte Model is unique. With this model, you’re getting individual services. Maybe a specific problem came up that needs addressing? This is when you pay for the services you need and nothing more. You can also create a customized IT managed services bundled package for yourself, tailored to your company’s specific requirements. That’s what makes this model different, sort of “off the menu,” and different from all-inclusive IT Managed Services models or pre-bundled packages.
What About Actual Pricing Ranges?
Actual pricing ranges vary from one jurisdiction to another. But to give you a brief overview of what pricing ranges look like, here’s the breakdown. Just remember–these aren’t actual prices only pricing ranges.
1. Flat Based range: Monthly, quarterly, or annual fee depending on needs
2. Per User range: $125–$300 per month
3. Per Device range: $20–$100 per month
With the Monitoring Only, Per Device, Per User, Tiered, All You Can Eat, and A La Carte pricing models and the pricing ranges, this should give you a clear picture of how much IT Managed Services should cost when you call different IT providers.